Shares of Badger Meter (NYSE: BMI) plummeted 19% on Friday following disappointing first-quarter results, with sales and earnings per share falling 9% and 29%, respectively, and significantly missing Wall Street expectations. This sharp decline has pushed the stock down 37% over the past year, raising concerns among investors about the company’s performance.
Despite the negative quarterly results, management provided context for the downturn, attributing it to the completion of several major projects that had previously boosted sales. CEO Kenneth Bockhorst emphasized that the decline does not reflect a change in demand or competitive position. Instead, he anticipates a sequential sales recovery throughout the year, supported by upcoming projects set to deploy in 2026.
For market professionals, the key takeaway is that Badger Meter, now trading at 21 times free cash flow—well below its five-year average—presents a potential buying opportunity. The company’s long-term growth prospects remain strong, driven by ongoing infrastructure modernization and increasing regulatory demands.
Source: fool.com