Badger Meter Inc. Q1 Profit Drop

What happened: Badger Meter Inc. (BMI) reported a 9% revenue decline and a 29% EPS drop in Q1 2026, driven by a 'project air pocket' where historical AMI deployments concluded before new projects began. Martin Marietta Materials, Inc. (MLM) also saw a Q1 income retreat, with earnings per share falling from $1.70 to $1.31 year-over-year.

Market impact: Badger Meter's stock plummeted 19% following the results, dragging down other utility water and sewer smart metering specialists. The slowdown in project installations and order rates negatively impacted Badger Meter's top line, affecting investor sentiment and valuation in the sector.

What to watch next: Badger Meter's Q2 2026 earnings call on August 5, 2026, will provide updates on project pipelines and order rates. Additionally, investors will closely monitor the company's progress in resolving the 'project air pocket' issue and its impact on full-year guidance.