On January 29, 2026, Scott Graham of Seaport Global set a new price target of $220 for Badger Meter, suggesting a potential upside of more than 55% from recent trading levels. This bullish projection follows an 11% decline in the company’s share price after the release of its fourth-quarter earnings. Graham cited strong demand for smart water solutions and the recent acquisition of SmartCover as key drivers underpinning his optimism for BMI’s mid-term growth trajectory.

For the fourth quarter ended December 31, 2025, Badger Meter reported adjusted earnings per share of $1.14, which was 0.9% below consensus estimates but represented a 10% year-over-year increase from $1.04. Quarterly net sales rose 7.6% to $220.7 million, driven primarily by a 9% increase in utility water equipment revenue. Base sales, excluding SmartCover, grew 2% year-over-year to $208.9 million. Operating profit expanded 10% to $43.0 million, lifting profit margins by 40 basis points to 19.5%, supported by favorable product mix in ultrasonic meters and cellular AMI endpoints.

In 2025, BMI delivered record sales of $916.7 million, an 11% increase over 2024, and achieved adjusted diluted EPS of $4.79, up 13% from $4.23. SmartCover contributed approximately $40.0 million in revenue during its first 11 months under BMI ownership, with pro-forma growth near 25%. Operating earnings for the year climbed 16% to $183.4 million, and cash provided by operations reached a record $183.7 million. Management forecasts high single-digit annual sales growth over the next five years, margin expansion driven by continued AMI deployment, and free cash flow conversion exceeding 100% of earnings.