Badger Meter Shares Dive 20% After Q1 Sales Drop and $100M UDlive Acquisition
Badger Meter shares fell to a 52-week low of $121.37 after first-quarter sales declined 9% to $202.3 million and diluted EPS dropped to $0.93 from $1.30. The company also committed $100 million to acquire UK-based UDlive to bolster its sewer line monitoring capabilities for the back half of 2026.
1. First-Quarter Financial Results
Badger Meter reported Q1 net revenue of $202.3 million, a 9% decline from the prior year, while diluted EPS fell to $0.93 compared to $1.30 in the same period last year. Both figures missed consensus analyst estimates, reflecting weaker-than-expected municipal and industrial project deliveries.
2. Stock Reaction
The stock plunged 20.3% to $121.37, its lowest level in 52 weeks, as investors reacted to the earnings shortfall and softer project timing. This move marked one of the largest single-day declines for the company over the past year.
3. UDlive Acquisition
Management approved a $100 million acquisition of UK-based UDlive to expand its sewer line monitoring solutions. The deal is aimed at integrating UDlive’s remote sensing technology to enhance Badger Meter’s wastewater infrastructure offerings.
4. Outlook and Pipeline
Despite near-term headwinds, leadership highlighted a strong project pipeline in the second half of 2026, driven by ongoing municipal modernization initiatives. They expect timing variability to normalize and contribute to revenue growth in upcoming quarters.