Argus Downgrades Badger Meter as Seaport Cuts Price Target to $220
On February 2, Argus Research downgraded Badger Meter to Hold from Buy, while Seaport Research cut its price target to $220 from $255 but kept a Buy rating. In Q4 2025, BMI posted $221 million in sales (up 8% YoY), achieved a 42.1% gross margin (+180 bps) and a 20.5% base operating margin (+140 bps).
1. Analyst Rating Changes
On February 2, Argus Research downgraded Badger Meter to Hold from Buy. Days earlier, Seaport Research maintained a Buy rating but trimmed its price target to $220 from $255, citing softer first-half sales offset by improved visibility into a second-half pickup.
2. Q4 2025 Financial Performance
The newly appointed CFO reported Q4 2025 sales of $221 million, up 8% year-over-year, with 2% base sales growth. Management noted that the quarter capped a year of record sales, strong profitability, and robust cash flow in water management solutions.
3. Margin Improvements
Operating profit margins expanded to 19.5%, up 40 basis points from a year earlier, while base operating margins rose 140 basis points to 20.5%. Gross margins widened by 180 basis points to 42.1%, driven by operational efficiencies and an improved product mix.
4. Growth Drivers and Outlook
Management highlighted strong demand for its cellular AMI solution and progress integrating SmartCover into the BlueEdge platform. Winning the PRASA AMI project in Puerto Rico further reinforces the company’s market position and supports its long-term growth outlook.