Badger Meter's Q3 Earnings & Sales Surpass Estimates, Rise Y/Y

Badger Meter, Inc. BMI reported earnings per share (EPS) of $1.19 for third-quarter 2025, which surpassed the Zacks Consensus Estimate by 7.2%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of $1.08.Quarterly net sales were $235.7 million, up 13.1% from $208.4 million in the year-ago quarter, driven by higher utility water sales. The Zacks Consensus Estimate was pegged at $229.4 million.Management highlighted that although the company navigates ongoing macroeconomic, trade and policy challenges, demand for its industry-leading cellular AMI and BlueEdge smart water management solutions remains robust. The company is confident that the long-term trends driving digital water technology adoption among utilities and commercial and industrial customers will sustain its revenue growth.The company is well-positioned to invest in innovation and pursue strategic, value-driven acquisitions with another quarter of strong free cash flow. It remains on track to realize the expected sales and cost synergies from the SmartCover acquisition.However, BMI’s shares slid 5.4% and closed trading at $177.35 on Tuesday. In the past year, shares have lost 10.9% against the Zacks Instruments-Control industry’s growth of 8.1%.Image Source: Zacks Investment ResearchSegmental PerformanceIn the quarter under review, utility water sales rose 14% year over year. Even excluding SmartCover, utility water sales were up 8%. The growth was driven by higher ultrasonic meter volumes, increased BEACON Software-as-a-Service sales and stronger water quality product demand.Flow instrumentation sales grew 4% year over year, as strength in water-related markets offset softer demand in deemphasized non-water applications.Other DetailsIn the third quarter, gross profit was $95.8 million, up from $83.9 million in the prior-year quarter. Gross margin was 40.7%, up 50 basis points (bps) year over year.Gross margin continued to benefit from ongoing structural mix improvements, while implemented price increases helped offset some tariff-related cost pressures during the quarter. Although the trade environment remains dynamic, it has raised its historical gross margin range of 38%–40% to a new normalized range of 39%–42%.Badger Meter, Inc. Price, Consensus and EPS Surprise Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. QuoteOperating earnings jumped 13% year over year to $46.1 million, while operating margin declined 10 bps to 19.6% from 19.5%.Selling, engineering and administration (SEA) expenses rose 11.8% year over year to $49.8 million. This increase was mainly driven by the addition of SmartCover, which included $1.6 million in intangible asset amortization. Base SEA expenses rose 3% year over year, reflecting a $1.8 million benefit from a deferred compensation plan tied to the stock price change during the quarter. Overall, SEA as a percentage of sales rose slightly to 21.1% from 20.8% in the prior-year quarter.Cash Flow & LiquidityIn the third quarter of 2025, Badger Meter generated $51.3 million of net cash from operating activities compared with $45.1 million a year ago.As of Sept. 30, 2025, the company had $201.7 million of cash and cash equivalents and $153.4 million of total current liabilities compared with the respective figures of $165.2 million and $138.7 million as of June 30, 2025.OutlookThe company remains confident in its long-term growth prospects, supported by a robust opportunity pipeline and strong demand for its smart water management solutions. It expects to achieve an average high single-digit top-line growth rate over the next five years, driven by continued technology adoption and strategic pricing initiatives that help offset tariff impacts.With a raised normalized gross margin range of 39–42% and consistent free cash flow generation, the company is well-positioned to invest in innovation and pursue disciplined, value-creating acquisitions such as SmartCover. Management remains focused on executing its strategic priorities while staying agile amid evolving macroeconomic, trade and supply chain conditions.BMI’s Zacks RankBadger Meter currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other CompaniesBlackBerry Limited BB reported second-quarter fiscal 2026 non-GAAP EPS of 4 cents. The figure beat the company’s estimate of breakeven to EPS of 1 cent. In the year-ago quarter, it reported a non-GAAP EPS of breakeven. The Zacks Consensus Estimate was pegged at 1 cent.Quarterly total revenues of $129.6 million exceeded its guidance ($115-$125 million) and were up 3% year over year. Management reported that the Secure Communications division outperformed expectations on both top and bottom line, while achieving improvements across its key metrics.In the past, shares of BB have gained 87.8%.America Movil, S.A.B. de C.V. AMX reported net income per ADR of 40 cents for third-quarter 2025 compared with 11 cents reported in the prior-year quarter. The earnings figure surpassed the Zacks Consensus Estimate of 36 cents.Net income in the quarter was Mex$22,700 million or Mex$0.38 per share against a net loss of Mex$6,427 million or Mex$0.10 per share in the year-ago quarter. The company's comprehensive financing cost was Mex$12,899 million, down 54.5% from the year-ago quarter’s Mex$28,323 million.In the past, shares of AMX have soared 33.8%Manhattan Associates Inc. MANH posted third-quarter 2025 adjusted earnings of $1.36 per share, beating the Zacks Consensus Estimate of $1.18. This compares to earnings of $1.35 per share a year ago. Manhattan Associates generated revenues of $275.8 million, surpassing the Zacks Consensus Estimate by 1.65%. This compares to year-ago revenues of $266.7 million.  Shares of MANH have plunged 24.6% in the past year.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX): Free Stock Analysis Report Badger Meter, Inc. (BMI): Free Stock Analysis Report Manhattan Associates, Inc. (MANH): Free Stock Analysis Report BlackBerry Limited (BB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks