BMI · Badger Meter, Inc. Q2 FY2026 earnings call record财报电话会记录

“Importantly, we are reaffirming our outlook for improving sequential top-line results for the balance of the year, with full year 2026 organic revenue still expected to be roughly flattish with 2025 levels.”

“Importantly, base sales were 9% higher than first quarter levels, as we anticipated, with a number of awarded projects in the pipeline beginning their initial ramp in shipments.”

“Utility water sales declined 8% year-over-year, and excluding the acquisition, were down 9%, reflecting the project pacing dynamics we have been discussing for some time.”

“On a year-over-year basis, operating earnings declined 12%, with margins down 110 basis points to 17.7%.”

“Base operating profit margins, excluding UDlive, were 18.4%, down 40 basis points from last year's second quarter.”

“Gross margin was 40.8%, down 30 basis points from the second quarter of 2025, primarily reflecting lower sales volumes and project mix.”

“While we have been able to adequately mitigate these impacts to date, the challenges posed by these pressures are not easing.”

“As always, we remain focused on delivering full-year cash flow conversion in excess of 100% of net earnings.”

“In the second quarter of 2026, we repurchased 204,000 shares for a total of $25.3 million and have approximately $90 million remaining on our current share repurchase authorization.”

“Last month, we had the opportunity to connect with multiple customers, engineering consulting firms, and investors at ACE 2026 in Washington, D.C.”

“First, just talking about price cost dynamics, that's an ongoing discussion that we're having internally and with customers as we're looking at RFP opportunities and working with customers on pricing individual projects.”

“While not maybe 100% in all of our contracts, that's certainly a common term that we're negotiating with our customers.”