Honeywell Intensifies Competition as Badger Meter Margins Slide 200 Bps
Badger Meter’s gross margins declined from 17% to 15% over the past year due to rising copper prices and global tariffs, with further headwinds expected through 2026. Honeywell International is highlighted as a growing rival alongside Itron, driving multiple analysts to cut 2026–27 earnings forecasts for Badger Meter.
1. Competition from Honeywell International
Honeywell International has stepped up its water-technology offerings, challenging Badger Meter’s leading position in smart metering. This intensifying rivalry follows Honeywell’s push into connectivity and IoT solutions that overlap with Badger Meter’s ORION remote monitoring products.
2. Rising Component and Tariff Costs
Badger Meter faces a gross margin headwind as elevated copper and electronic component prices add cost pressure. Cross-border tariffs have also increased expenses, contributing to a 200-basis-point margin decline from 17% to 15% over the past year.
3. Analyst Forecast Revisions
A number of Wall Street firms have lowered Badger Meter’s earnings estimates for 2026 and 2027, citing sustained margin compression and competitive pressures from Honeywell and Itron. These downward revisions reflect concerns that cost inflation and market share erosion will persist into next year.