Why Badger Meter Stock Is Plummeting 18% Lower This Week

Badger Meter (WCM) dropped 18% this week after the company reported second-quarter 2026 results that missed the mark despite clearing low analyst expectations. Sales declined 7% year-over-year while earnings per share fell 13%, triggering a sharp selloff.

The weakness stems from management's flat full-year 2026 sales guidance, which disappointed investors who anticipated stronger momentum given nine major utility projects scheduled for deployment in the second half of 2026. The muted outlook overshadowed the quarterly beat and raised questions about near-term execution.

The selloff has compressed Badger Meter's valuation from 42 times free cash flow to 24 times, according to analysis from The Motley Fool. The lower multiple brings the stock closer to historical norms after trading at a significant premium. The company's long-term positioning in water infrastructure modernization remains intact, though the near-term path appears cloudier.