Badger Meter, Inc. BMI is tied closely to the digitization of water and wastewater infrastructure. Cellular networks, artificial intelligence, premium software and continuous sewer monitoring are widening the company’s role beyond meter replacement.
Data-center expansion adds another layer. It supports demand for flow meters used in cooling systems, while also increasing pressure on electronic component supply and costs.
Badger Meter Rides Cellular Water Network Adoption
Badger Meter’s ORION Cellular endpoints help utilities upgrade meter networks without building separate communications infrastructure. The company’s dynamic multi-carrier technology adds flexibility by allowing network resiliency to become part of the modernization case.
The long runway remains tied to replacement demand. Badger Meter estimates that about 70% of installed U.S. water meters have already shifted to some form of radio technology, leaving continued radio upgrades and broader cellular adoption as multi-year drivers.
BMI Extends Monitoring Into Sewers and Stormwater
SmartCover pushed Badger Meter deeper into wastewater collection by adding continuous sewer-level and lift-station monitoring. These tools help utilities detect overflows, identify inflow and infiltration, reduce unnecessary cleaning and monitor pump-station performance.
UDlive extends that strategy into sewer-line monitoring across more use cases, network conditions and geographies. Together, SmartCover and UDlive give utilities more sensing, communication and software configurations, which matters because sewer and stormwater networks often differ widely by location and operating need.
Badger Meter Adds AI and Premium Software Tools
Badger Meter’s software layer is becoming more important as utilities collect more network data. Cobalt embedded artificial intelligence, EyeOnWater Premium, ORION Lens and the BEACON Field app are designed to turn field readings into operating and customer-service decisions.
That software can raise the value of installed hardware after deployment. It also supports recurring revenue and reinforces Badger Meter’s Network as a Service positioning, where utility customers buy a broader mix of communications, analytics and services rather than only meters.
Itron, Inc. ITRI is relevant in this discussion because it also serves utilities through intelligent networks, software and services. Xylem Inc. XYL offers a broader water technology comparison point for investors watching infrastructure, analytics and water-system modernization.
BMI Sees Data Centers Lift Flow Demand and Costs
Flow instrumentation sales increased 6% year over year in the second quarter of 2026. Management cited broad water-related demand, with data-center orders supporting clamp-on meters and magnetic meters used in cooling towers and flow-monitoring systems.
The same data-center buildout creates a cost issue. Badger Meter flagged rising electronic component costs and availability constraints tied to artificial intelligence and data-center demand, with exposure spanning cellular endpoints, ultrasonic meters and beyond-the-meter products.
BMI has used pricing discipline and escalation provisions in many contracts to manage cost pressure. Still, these pressures were not easing, keeping gross margin recovery dependent on mix, volume, project execution and supplier availability.
Badger Meter, Inc. Price, Consensus and EPS Surprise
Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote
Badger Meter's Trend Exposure Needs Confirmation
Badger Meter’s long-term thesis is supported by cellular adoption, hardware-enabled recurring software and broader sewer monitoring. The company also reaffirmed its five-year framework for high-single-digit sales growth, 10-15% EPS growth and free cash flow conversion above 100% of net income.
Near-term confirmation is still needed. Full-year 2026 revenue excluding acquisitions is expected to be roughly flattish with 2025, and year-over-year growth is weighted toward the fourth quarter as awarded advanced metering infrastructure projects ramp unevenly.
The stock currently carries a Zacks Rank #4 (Sell) and has a VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That does not negate Badger Meter’s exposure to smarter water infrastructure. It does mean investors should balance the long-term digitization opportunity against project timing, component inflation, acquisition amortization and valuation, with shares recently trading at a premium to key benchmarks.
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