Badger Meter, Inc. (BMI) SEC Filings & Earnings Calls

Component supply constraint from AI demand

“As suppliers allocate manufacturing capacity to support AI-related applications and data center deployments, we have experienced and may continue to experience longer lead times, reduced component availability, and increased procurement costs for certain critical electronic components.” · word for word

Tariff cost pressure

“We evaluate the impact of global tariffs and trade restrictions on our business and operations and leverage our manufacturing footprint, when possible, through the use of the USMCA trade agreement to minimize impact. Additionally, we have enacted certain price increases to offset tariff costs that we are not able to mitigate.” · word for word

Single supplier concentration

“The Company relies on single suppliers for most brass castings and certain resin and electronic subassemblies in several of its product lines.” · word for word

Uneven AMI project pacing causing year-over-year utility water sales decline of 3% (ex-acquisition)

“Excluding the acquisition, utility water sales increased 5% sequentially from the second quarter, yet declined 3% year-over-year, reflecting uneven AMI project pacing” · word for word

Material cost pressures from broad electronics supply chain dynamics

“We remain steadfastly focused on cost management actions to mitigate the uneven 2026 sales cadence, while effectively addressing ongoing material cost pressures related to broad electronics supply chain dynamics.” · word for word

UDlive acquisition integration risk with dilutive gross margin impact from inventory fair-value step-up amortization

“UDlive gross margins include the dilutive impact of inventory fair-value step-up amortization.” · word for word

Revenue decline due to uneven AMI project pacing

“The utility water decline reflects expected uneven AMI project pacing.” · word for word

Supply chain constraints from AI demand

“Global investment in artificial intelligence, computing infrastructure and hyperscale data center expansion has increased demand for various electronic components used in our products.” · word for word

Tariff cost pressure

“We have enacted certain price increases to offset tariff costs that we are not able to mitigate.” · word for word

Uneven AMI project phasing causing revenue volatility; full-year flattish guidance suggests limited near-term growth.

“Utility water sales declined 8% year-over-year... full‑year revenue, excluding acquisitions, flattish versus 2025.” · word for word

Supply chain and cost pressures persist, though partially offset by cost management.

“The Company's results are subject to... supply chain risk, material and labor cost increases.” · word for word

Low risk; facility undrawn with conservative covenants.

“No amounts outstanding, net debt/EBITDA ≤ 3.0x.”

Forward-looking statements subject to risks; no material new risk disclosed.

“Standard safe harbor language.”

Tariff exposure and uncertainty

“In 2025, the U.S. government implemented a series of trade tariffs on goods imported into the U.S. from various countries. In many cases, these tariffs resulted in reciprocal tariffs and other actions on goods being exported from the U.S. These associated tariffs are complex and continue to evolve as negotiations occur.” · word for word

Demand volatility from project timing

“Net sales into the utility water market were $178.4 million, a decrease of 9.6% from the prior year’s $197.3 million due to project timing dynamics of previously completed project deployments and customer short cycle order pacing” · word for word

Revenue decline due to project timing and short-cycle weakness may persist.

“we experienced weaker than anticipated short-cycle order rates in the first quarter of 2026.” · word for word

Operating margin pressure from sales decline and SEA expense growth.

“Operating margin of 17.4% primarily reflected the year-over-year decline in sales combined with the increase in SEA expenses.” · word for word

Tariff exposure

“Shareholders requested information pertaining to the company's current or future tariff-related exposures.” · word for word

Cybersecurity threats

“While the company has experienced, and expects to continue to experience cyber threats, no material incidents or breaches have occurred.” · word for word

Tariff exposure on raw materials

“Increased tariffs on imports into the United States, including those from China, Mexico, Canada and Europe could harm our sales and results of operations.” · word for word

Single supplier dependency

“We rely on single suppliers for microprocessors, castings and components in several of our product lines.” · word for word

Municipal budget dependency

“Delays in governmental programs... could result in a reduction in demand for our products.”

Global trade conditions uncertainty

“Management noted navigating unpredictable global trade conditions.”

Project pacing effects on quarterly revenue

“Sequential decline in utility water sales due to project timing.”

No material risks identified; standard executive compensation disclosure.