Q1 2026 Badger Meter Inc Earnings Call

April 17, 2026

Speaker #1: Ladies and gentlemen , welcome to the Q1 2026 Badger Meeting Earnings Conference call . After today's prepared remarks , we will host a question and answer session .

Operator 2: Ladies and gentlemen, welcome to the Q1 2026 Badger Meter Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. As a reminder, today's conference is being recorded. It is now my pleasure to turn the conference over to Barbara Noverini, Head of Investor Relations. Please go ahead, Ms. Noverini.

Operator: Ladies and gentlemen, welcome to the Q1 2026 Badger Meter Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. As a reminder, today's conference is being recorded. It is now my pleasure to turn the conference over to Barbara Noverini, Head of Investor Relations. Please go ahead, Ms. Noverini.

Speaker #1: If you would like to ask a question , please press star one to raise your hand . To withdraw your question , press star one again as a reminder , today's conference is being recorded .

Speaker #1: It is now my pleasure to turn the conference over to Barbara Noverini, Head of Investor Relations. Please go ahead, Ms. Noverini.

Speaker #2: Thank you, operator. Thank you for joining the Badger Meter Inc. first quarter 2026 earnings conference call. I'm here today with Kenneth Bockhorst.

Barbara Noverini: Thank you, operator. Thank you for joining the Badger Meter Q1 2026 Earnings Conference Call. I'm here today with Ken Bockhorst, our Chairman, President, and Chief Executive Officer, Bob Rocklage, our Executive Vice President of North America Municipal Utility, and Dan Welsing, our Chief Financial Officer. This morning, we made the earnings release, acquisition announcement, and related slide presentation available on our website at investors.badgermeter.com. As a reminder, any forward-looking statements made on this call are subject to various risks and uncertainties, the most important of which are outlined in our news release and SEC filings. On today's call, we may refer to certain non-GAAP financial metrics. Our earnings presentation provides a reconciliation between the most directly comparable GAAP measure and any non-GAAP financial measures discussed. With that, I'll turn the call over to Ken.

Barbara Noverini: Thank you, operator. Thank you for joining the Badger Meter Q1 2026 Earnings Conference Call. I'm here today with Ken Bockhorst, our Chairman, President, and Chief Executive Officer, Bob Rocklage, our Executive Vice President of North America Municipal Utility, and Dan Weltzien, our Chief Financial Officer. This morning, we made the earnings release, acquisition announcement, and related slide presentation available on our website at investors.badgermeter.com. As a reminder, any forward-looking statements made on this call are subject to various risks and uncertainties, the most important of which are outlined in our news release and SEC filings. On today's call, we may refer to certain non-GAAP financial metrics. Our earnings presentation provides a reconciliation between the most directly comparable GAAP measure and any non-GAAP financial measures discussed. With that, I'll turn the call over to Ken.

Speaker #2: Our chairman , president and Chief Executive Officer . Robert Wrocklage , our Executive Vice president of North America , Municipal Utility . And Dan Weltzin , our chief Financial officer This morning , we made the earnings release acquisition announcement and related slide presentation available on our website at investors BADGER METER INC .

Speaker #2: As a reminder , any forward looking statements made on this call are subject to various risks and uncertainties . The most important of which are outlined in our news release and SEC filings on today's call , we may refer to certain non-GAAP financial metrics .

Speaker #2: Our earnings presentation provides a reconciliation between the most directly comparable GAAP measure and any non-GAAP financial measures discussed. With that, I'll turn the call over to Ken.

Speaker #3: Thanks , Bob , and good morning . Before getting into the specifics of the quarter , I'd like to start this morning by setting the stage for a more detailed discussion on our Q1 results and how we're thinking about our metering business .

Kenneth Bockhorst: Thanks, Barb, and good morning. Before getting into the specifics of the quarter, I'd like to start this morning by setting the stage for a more detailed discussion on our Q1 results and how we're thinking about our metering business more broadly. We operate in a market supported by strong long-term macro drivers, recurring replacement cycles, and increasing adoption of advanced technologies, ranging from our ultrasonic meters to industry-leading cellular AMI, beyond the meter solutions, and recurring software and analytics. These durable factors, combined with solid execution, have driven consistent value creation over time. At the same time, it has always been true that our business can be uneven quarter to quarter and year to year. Over the 2023 to 2025 time period, robust revenue growth, driven by multi-year cellular AMI share gains and overlapping project activity, reduced the visibility of this inherent unevenness.

Ken Bockhorst: Thanks, Barb, and good morning. Before getting into the specifics of the quarter, I'd like to start this morning by setting the stage for a more detailed discussion on our Q1 results and how we're thinking about our metering business more broadly. We operate in a market supported by strong long-term macro drivers, recurring replacement cycles, and increasing adoption of advanced technologies, ranging from our ultrasonic meters to industry-leading cellular AMI, beyond the meter solutions, and recurring software and analytics. These durable factors, combined with solid execution, have driven consistent value creation over time. At the same time, it has always been true that our business can be uneven quarter to quarter and year to year. Over the 2023 to 2025 time period, robust revenue growth, driven by multi-year cellular AMI share gains and overlapping project activity, reduced the visibility of this inherent unevenness.

Speaker #3: More broadly . We operate in a market supported by strong , long term macro drivers , recurring replacement cycles , and increasing adoption of advanced technologies ranging from our ultrasonic meters to industry leading cellular Ami Beyond the meter solutions and recurring software and analytics These durable factors , combined with solid execution , have driven consistent value creation over time At the same time , it has always been true that our business can be uneven quarter to quarter and year to year Over the 2023 to 2025 time period , robust revenue growth driven by multiyear cellular Ami share gains , share gains , and overlapping project activity reduced the visibility of this inherent unevenness in mid 2025 .

Kenneth Bockhorst: In mid-2025, we began to signal that the revenue contribution from certain historical AMI projects would decline as deployments concluded ahead of awarded but not yet started AMI projects. As a result of this project pacing and backlog normalization dynamic, we previously communicated that our 2026 revenues would be weighted toward the H2 of the year. On page three of our earnings slide deck, you can see the impact from project pacing in our Q1 2026 revenue. In addition, short cycle order rates, for which visibility is always more limited, were weaker than we anticipated, resulting in approximately $15 to 20 million of lower revenue versus our internal expectations. As a result of those combined headwinds, Q1 sales were down 9% year-over-year to $202 million.

Ken Bockhorst: In mid-2025, we began to signal that the revenue contribution from certain historical AMI projects would decline as deployments concluded ahead of awarded but not yet started AMI projects. As a result of this project pacing and backlog normalization dynamic, we previously communicated that our 2026 revenues would be weighted toward the H2 of the year. On page three of our earnings slide deck, you can see the impact from project pacing in our Q1 2026 revenue. In addition, short cycle order rates, for which visibility is always more limited, were weaker than we anticipated, resulting in approximately $15 to 20 million of lower revenue versus our internal expectations. As a result of those combined headwinds, Q1 sales were down 9% year-over-year to $202 million.

Speaker #3: We began to signal that the revenue contribution from certain historical AMI projects would decline as deployments concluded ahead of awarded, but not yet started.

Speaker #3: Ami projects . As a result of this project , pacing and backlog normalization dynamic , we previously communicated that our 2026 revenues would be weighted toward the back half of the year On page three of our earnings slide deck , you can see the impact from project pacing in our first quarter 2026 .

Speaker #3: Revenue . In addition , short cycle order rates for which visibility is always more limited were weaker than we anticipated , resulting in approximately 15 to $20 million of lower revenue versus our internal expectations as a result of those combined headwinds .

Speaker #3: First quarter sales were down 9% year over year to $202 million, while our expectations for a solid second half have not changed.

Kenneth Bockhorst: While our expectations for a solid H2 have not changed, the softer start up to the year prompts us to anticipate full year 2026 organic revenue to be on balance with 2025. Normally, I would turn the call over to Dan at this point to walk through the financial results in detail. However, in light of the below-expectation sales results, I'm going to turn it over to Bob to walk through greater detail on this multi-layered customer dynamic. In short, Bob will explain our view that this Q1 outcome is timing-related and does not reflect a structural change in either market demand, our broader competitive position, or the long-term market drivers of our business. Bob will walk through a subset of anonymized details related to several awarded but not yet started AMI projects that are expected to begin deployment in the H2 of 2026.

Ken Bockhorst: While our expectations for a solid H2 have not changed, the softer start up to the year prompts us to anticipate full year 2026 organic revenue to be on balance with 2025. Normally, I would turn the call over to Dan at this point to walk through the financial results in detail. However, in light of the below-expectation sales results, I'm going to turn it over to Bob to walk through greater detail on this multi-layered customer dynamic. In short, Bob will explain our view that this Q1 outcome is timing-related and does not reflect a structural change in either market demand, our broader competitive position, or the long-term market drivers of our business. Bob will walk through a subset of anonymized details related to several awarded but not yet started AMI projects that are expected to begin deployment in the H2 of 2026.

Speaker #3: The softer start to the year prompts us to anticipate full year 2026 organic revenue to be on balance , with 2025 . Normally , I would turn the call over to Dan at this point to walk through the financial results in detail .

Speaker #3: However, in light of the below expectations and sales results, I'm going to turn it over to Bob to walk through greater detail on this multi-layered customer dynamic.

Speaker #3: In short, Bob will explain our view that this first quarter outcome is timing-related and does not reflect a structural change in either market demand.

Speaker #3: Our broader competitive position or the long-term market drivers of our business. Bob will walk through a subset of anonymized details related to several awarded, but not yet started.

Speaker #3: Ami projects that are expected to begin deployment in the back half of 2026 . This isn't the level of project detail we'd normally provide each quarter , but these awarded projects , along with others in the funnel , help to inform our outlook .

Kenneth Bockhorst: This isn't the level of project detail we'd normally provide each quarter, but these awarded projects, along with others in the funnel, help to inform our outlook for the rest of 2026 and support our expected momentum into 2027. With that, I'll turn it over to Bob.

Ken Bockhorst: This isn't the level of project detail we'd normally provide each quarter, but these awarded projects, along with others in the funnel, help to inform our outlook for the rest of 2026 and support our expected momentum into 2027. With that, I'll turn it over to Bob.

Speaker #3: For the rest of 2026 and support our expected momentum into 2027. With that, I'll turn it over to Bob.

Speaker #4: Thanks , Ken , and good morning , everyone . Please turn to slide four to put the first quarter results into context . It's helpful to briefly revisit the 2023 to 2025 time period .

Robert Wrocklage: Thanks, Ken, and good morning, everyone. Please turn to slide 4. To put the Q1 results into context, it's helpful to briefly revisit the 2023 to 2025 time period. During this multi-year timeframe, we consistently described backlog as elevated in 2023 and 2024, with normalization progressing through 2025. That backdrop supported strong but moderating revenue growth. As shown on the slide, 4 sizable AMI projects that began deployment in 2023 were meaningful contributors during the same time period, collectively representing nearly 800,000 connections. These were not the only AMI projects ongoing or completed during this multi-year timeframe. Rather, this selected cohort of projects represents the most significant project revenue contributors for illustrative purposes. 2 of these projects, JEA and OUC, were supply-only projects, with our involvement limited to the shipment of our meters, endpoints, and recurring BEACON SaaS revenue, rather than full deployment execution.

Bob Wrocklage: Thanks, Ken, and good morning, everyone. Please turn to slide four. To put the Q1 results into context, it's helpful to briefly revisit the 2023 to 2025 time period. During this multi-year timeframe, we consistently described backlog as elevated in 2023 and 2024, with normalization progressing through 2025. That backdrop supported strong but moderating revenue growth. As shown on the slide, four sizable AMI projects that began deployment in 2023 were meaningful contributors during the same time period, collectively representing nearly 800,000 connections. These were not the only AMI projects ongoing or completed during this multi-year timeframe. Rather, this selected cohort of projects represents the most significant project revenue contributors for illustrative purposes. Two of these projects, JEA and OUC, were supply-only projects, with our involvement limited to the shipment of our meters, endpoints, and recurring BEACON SaaS revenue, rather than full deployment execution.

Speaker #4: During this multi year time frame , we consistently described backlog as elevated in 2023 and 2024 , with normalization progressing through 2025 . That backdrop supported strong but moderating revenue growth as shown on the slide .

Speaker #4: For sizable Army projects that began deployment in 2023, were meaningful contributors. During this same time period, collectively representing nearly 800,000 connections.

Speaker #4: These were not the only Ami projects ongoing or completed during this multi-year time frame . Rather , this selected cohort of projects represents the most significant project revenue contributors for illustrative purposes Two of these projects , Jia and OUC , were supply only projects .

Speaker #4: With our involvement limited to the shipment of our meter endpoints and recurring Beacon SaaS revenue rather than full deployment, Execution PCU and Galveston were turnkey projects for which the scope of work included Badger Meter products and SaaS, plus installation, labor, and ancillary equipment such as meter boxes and lids.

Robert Wrocklage: PCU and Galveston were turnkey projects for which the scope of work included Badger Meter products and SaaS, plus installation labor and ancillary equipment such as meter boxes and lids. As previously noted, both project size and scope matter. Turnkey projects generate significantly greater revenue than equivalently sized supply-only projects. That relationship is illustrated in the stacked bar chart and is one of several drivers of revenue unevenness. These projects ramped in 2023 off a prior year consolidated revenue base of $566 million. They peaked in 2024 and declined through 2025 as the projects approached completion. Over the same period, our generalized order backlog moved from elevated to more normalized levels.

Bob Wrocklage: PCU and Galveston were turnkey projects for which the scope of work included Badger Meter products and SaaS, plus installation labor and ancillary equipment such as meter boxes and lids. As previously noted, both project size and scope matter. Turnkey projects generate significantly greater revenue than equivalently sized supply-only projects. That relationship is illustrated in the stacked bar chart and is one of several drivers of revenue unevenness. These projects ramped in 2023 off a prior year consolidated revenue base of $566 million. They peaked in 2024 and declined through 2025 as the projects approached completion. Over the same period, our generalized order backlog moved from elevated to more normalized levels.

Speaker #4: As previously noted , both project size and scope matter turnkey projects generate significantly greater revenue than equivalently sized supply , only projects that relationship is illustrated in the stacked bar chart , and is one of several drivers of revenue unevenness .

Speaker #4: These projects ramped in 2023 off a prior year consolidated revenue base of $566 million . They peaked in 2024 and declined through 2025 , as the project's approached completion Over the same period , our generalized order backlog moved from elevated to more normalized levels Together , the size and scope of projects combined with backlog normalization supported strong results over this three year period .

Robert Wrocklage: Together, the size and scope of projects, combined with backlog normalization, supported strong results over this three-year period while muting the impact of underlying short cycle order variability, which was always present, just not visible in our results against this positive backdrop. Within these four AMI projects, you can see the revenue contribution is uneven, with meaningful variability quarter to quarter based upon project and customer specifics that are not related to underlying demand, competitive dynamics, or long-term market drivers.

Bob Wrocklage: Together, the size and scope of projects, combined with backlog normalization, supported strong results over this three-year period while muting the impact of underlying short cycle order variability, which was always present, just not visible in our results against this positive backdrop. Within these four AMI projects, you can see the revenue contribution is uneven, with meaningful variability quarter to quarter based upon project and customer specifics that are not related to underlying demand, competitive dynamics, or long-term market drivers.

Speaker #4: While muting the impact of underlying short cycle order variability , which was always present , just not visible in our results . Against this positive backdrop Within these for Ami projects , you can see the revenue contribution is uneven with meaningful variability quarter to quarter based upon project and customer specifics that are not related to underlying demand .

Speaker #4: Competitive dynamics, or long-term market drivers. We entered 2026 with these projects largely completed and a normalized backlog against this 2026 backdrop.

Daniel Weltzien: We entered 2026 with these projects largely completed and a normalized backlog. Against this 2026 backdrop, short cycle order rates, where we have the least amount of visibility, were weaker than expected, and thus the below-expectation revenue outcome. Now to the facts that have and will continue to inform our forward revenue outlook. Slide 5 highlights our forward look at awarded AMI projects that are expected to begin deployment in the H2 of 2026. Importantly, this is not a top projects list, but rather a snapshot that illustrates several important characteristics of our business, competitive positioning, and technology leadership. Many of these awards have been known to us for some time, in some cases, years, with typical lags between initial award indication and deployment driven by a number of factors.

Bob Wrocklage: We entered 2026 with these projects largely completed and a normalized backlog. Against this 2026 backdrop, short cycle order rates, where we have the least amount of visibility, were weaker than expected, and thus the below-expectation revenue outcome. Now to the facts that have and will continue to inform our forward revenue outlook. Slide 5 highlights our forward look at awarded AMI projects that are expected to begin deployment in the H2 of 2026. Importantly, this is not a top projects list, but rather a snapshot that illustrates several important characteristics of our business, competitive positioning, and technology leadership. Many of these awards have been known to us for some time, in some cases, years, with typical lags between initial award indication and deployment driven by a number of factors.

Speaker #4: Short-cycle order rates, where we have the least amount of visibility, were weaker than expected, and thus the below-expectation revenue outcome.

Speaker #4: Now to the facts that have and will continue to inform our forward revenue outlook. Slide five highlights our forward look at awarded AMI projects that are expected to begin deployment in the back half of 2026.

Speaker #4: Importantly , this is not a top projects list , but rather a snapshot that illustrates several important characteristics of our business competitive positioning and technology leadership Many of these wards have been a known have been known to us for some time .

Speaker #4: In some cases, years with typical lags between initial award indication and deployment are driven by a number of factors. These timing differences are common in our industry and contribute to revenue unevenness, and they also represent just one layer of the multi-stage opportunity funnel that informs our view of future growth.

Daniel Weltzien: These timing differences are common in our industry and contribute to revenue unevenness, and they also represent just one layer of the multi-stage opportunity funnel that informs our view of future growth. This list also reflects a wide range of funding sources, including capital budgets, rate cases, grants, WIFIA loans, and other financing, underscoring broad funding availability and sources. Also illustrated here is additional information on competitive conversions, diverse deployment types, and technology adoption across both municipal and investor-owned utilities. Most importantly, this project set represents between 2.6 million and 3.6 million connections over multiple years, meaningfully larger than the prior project cohort of 800,000 connections that supported growth from 2023 to 2025. Turning to the PRASA project, we received the first significant purchase order for the project in Q1, and we expect the utilities installation partners to begin deployment activity around mid-year.

Bob Wrocklage: These timing differences are common in our industry and contribute to revenue unevenness, and they also represent just one layer of the multi-stage opportunity funnel that informs our view of future growth. This list also reflects a wide range of funding sources, including capital budgets, rate cases, grants, WIFIA loans, and other financing, underscoring broad funding availability and sources. Also illustrated here is additional information on competitive conversions, diverse deployment types, and technology adoption across both municipal and investor-owned utilities. Most importantly, this project set represents between 2.6 million and 3.6 million connections over multiple years, meaningfully larger than the prior project cohort of 800,000 connections that supported growth from 2023 to 2025. Turning to the PRASA project, we received the first significant purchase order for the project in Q1, and we expect the utilities installation partners to begin deployment activity around mid-year.

Speaker #4: This list also reflects a wide range of funding sources , including capital budgets , rate cases , grants , wifia loans , and other financing , underscoring broad funding .

Speaker #4: Availability and sources. Also illustrated here is additional information on competitive conversions. There are diverse deployment types and technology adoption across both municipal and investor-owned utilities.

Speaker #4: Most importantly, this project set represents between 2.6 million and 3.6 million connections over multiple years, meaningfully larger than the prior project cohort of 800,000 connections that supported growth from 2023 to 2025.

Speaker #4: Turning to the Prosa project, we received the first significant purchase order for the project in the first quarter, and we expect the utility's installation partners to begin deployment activity around mid-year.

Speaker #4: Prasa, together with the successful completion of the projects previously discussed on the call and others not announced, underscore our continued AMI success with customers of any size and complexity.

Daniel Weltzien: PRASA, together with the successful completion of the projects previously discussed on the call, and others not announced, underscore our continued AMI success with customers of any size and complexity. In summary, while the Q1 results stand out relative to recent history, we view the H1 2026 as a short pause, not a break in our trajectory. As we move into the next phase of growth, we expect continued expansion of our AMI installed base. This in turn, will emphasize ORION Cellular AMI as the market standard for AMI, which creates opportunities for further meter share gain, recurring software revenue, and broader adoption of our beyond the meter solutions. With that, I'll turn the call back over to Ken.

Bob Wrocklage: PRASA, together with the successful completion of the projects previously discussed on the call, and others not announced, underscore our continued AMI success with customers of any size and complexity. In summary, while the Q1 results stand out relative to recent history, we view the H1 2026 as a short pause, not a break in our trajectory. As we move into the next phase of growth, we expect continued expansion of our AMI installed base. This in turn, will emphasize ORION Cellular AMI as the market standard for AMI, which creates opportunities for further meter share gain, recurring software revenue, and broader adoption of our beyond the meter solutions. With that, I'll turn the call back over to Ken.

Speaker #4: In summary , while the first quarter results stand out relative to recent history , we review . We view the first half of 2026 as a short pause , not a break .

Speaker #4: In our trajectory as we move into the next phase of growth, we expect continued expansion of our AMI installed base, and this in turn will emphasize ORION's cellular AMI as the market standard for AMI, which creates opportunities for further meter share gain.

Speaker #4: Recurring software revenue, and broader adoption of our Beyond the Meter solutions. With that, I'll turn the call back over to Ken.

Speaker #4: Thanks .

Speaker #3: Bob In addition to the project awards described by Bob , we continue to seek constructive market and customer activity across our extended Opportunity funnel , including pending RFPs and early utility engagement with consultants , which remains healthy as utilities continue to prioritize modernization , efficiency , and visibility across their water networks .

Kenneth Bockhorst: Thanks, Bob. In addition to the project awards described by Bob, we continue to see constructive market and customer activity across our extended opportunity funnel, including pending RFPs and early utility engagement with consultants, which remains healthy as utilities continue to prioritize modernization, efficiency, and visibility across their water networks. These long-term secular drivers remain intact. Despite the soft start to the year, I'm encouraged by the consistency we've delivered in gross margin performance, overall SEA discipline, and cash flow, which speaks to the strength of our team's execution around the world and the resilience of our business model. From a near-term cost perspective, we've implemented measured cost reduction actions, including a 10% salary reduction for our executive officers for the next six months, to maintain spending discipline and protect margin integrity as we navigate revenue pacing throughout the year.

Ken Bockhorst: Thanks, Bob. In addition to the project awards described by Bob, we continue to see constructive market and customer activity across our extended opportunity funnel, including pending RFPs and early utility engagement with consultants, which remains healthy as utilities continue to prioritize modernization, efficiency, and visibility across their water networks. These long-term secular drivers remain intact. Despite the soft start to the year, I'm encouraged by the consistency we've delivered in gross margin performance, overall SEA discipline, and cash flow, which speaks to the strength of our team's execution around the world and the resilience of our business model. From a near-term cost perspective, we've implemented measured cost reduction actions, including a 10% salary reduction for our executive officers for the next six months, to maintain spending discipline and protect margin integrity as we navigate revenue pacing throughout the year.

Speaker #3: These long term secular drivers remain intact despite the soft start to the year . I'm encouraged by the consistency we've delivered in gross margin performance Overall , SCA discipline and cash flow , which speaks to the strength of our team's execution around the world and the resilience of our business model from a near-term cost perspective .

Speaker #3: We've implemented measured cost-reduction actions, including a 10% salary reduction for our executive officers for the next six months, to maintain spending discipline and protect margin integrity.

Speaker #3: As we navigate revenue pacing throughout the year, I'll come back at the end to talk about our outlook and the exciting announcement we made this morning around the acquisition of UDI Live. But before I do that, I'll turn the call over to Dan to talk more about the numbers.

Kenneth Bockhorst: I'll come back at the end to talk about our outlook and the exciting announcement we made this morning around the acquisition of UDlive. Before I do that, I'll turn the call over to Dan to talk more about the numbers.

Ken Bockhorst: I'll come back at the end to talk about our outlook and the exciting announcement we made this morning around the acquisition of UDlive. Before I do that, I'll turn the call over to Dan to talk more about the numbers.

Speaker #5: Thanks, Ken. The contrast between the first quarter of 2026 and the first quarter of 2025 is clear. So let's get into those details. Turning to slide six.

Daniel Weltzien: Thanks, Ken. The contrast between Q1 2026 and Q1 2025 is clear. Let's get into those details. Turning to slide 6, total sales were $202 million, representing a 9% decline year over year. Utility Water sales declined 10% year over year, reflecting the project pacing and weaker short cycle order rates referenced by both Ken and Bob. Lower metering product revenue was partially offset by increased BEACON SaaS, SmartCover, water quality, and network monitoring product revenues. Collectively, beyond the meter product line growth was a bright spot in the quarter that should not be lost in the broader revenue headline. Sales for the Flow Instrumentation product line were down 4% year over year. Turning to profitability, gross margin was 41.7%, down 120 basis points against a record gross margin in Q1 2025, primarily reflecting product and project mix.

Dan Weltzien: Thanks, Ken. The contrast between Q1 2026 and Q1 2025 is clear. Let's get into those details. Turning to slide 6, total sales were $202 million, representing a 9% decline year over year. Utility Water sales declined 10% year over year, reflecting the project pacing and weaker short cycle order rates referenced by both Ken and Bob. Lower metering product revenue was partially offset by increased BEACON SaaS, SmartCover, water quality, and network monitoring product revenues. Collectively, beyond the meter product line growth was a bright spot in the quarter that should not be lost in the broader revenue headline. Sales for the Flow Instrumentation product line were down 4% year over year. Turning to profitability, gross margin was 41.7%, down 120 basis points against a record gross margin in Q1 2025, primarily reflecting product and project mix.

Speaker #5: Total sales were $202 million , representing a 9% decline year over year Utility water sales declined 10% year over year , reflecting the project pacing and weaker short cycle order rates referenced by both Ken and Bob Lower metering product revenue was partially offset by increased beacon SaaS Smart Cover , water quality , and network monitoring .

Speaker #5: Product revenues collectively , beyond the meter product line growth was a bright spot in the quarter that should not be lost in the broader revenue headline sales for the flow Instrumentation product line were down 4% year over year Turning to profitability , gross margin was 41.7% , down 120 basis points against a record gross margin in the first quarter of 2025 , primarily reflecting product and project mix gross margins remained robust and near the top end of our normalized range , which reinforces the durability of our pricing discipline and structural mix benefits .

Daniel Weltzien: Gross margins remained robust and near the top end of our normalized range, which reinforces the durability of our pricing discipline and structural mix benefits despite lower year over year values. Selling, engineering, and administrative expenses were $49.2 million, increasing $3.1 million year over year, driven primarily by $1.2 million in transaction costs associated with the UDlive acquisition, higher personnel costs, and an additional month of SmartCover SEA costs, offset by reduced incentive compensation expense based upon the Q1 results. SEA as a percentage of sales increased by 360 basis points year over year, primarily due to the deleveraging effect of lower volumes in the quarter, which we expect will be temporary.

Dan Weltzien: Gross margins remained robust and near the top end of our normalized range, which reinforces the durability of our pricing discipline and structural mix benefits despite lower year over year values. Selling, engineering, and administrative expenses were $49.2 million, increasing $3.1 million year over year, driven primarily by $1.2 million in transaction costs associated with the UDlive acquisition, higher personnel costs, and an additional month of SmartCover SEA costs, offset by reduced incentive compensation expense based upon the Q1 results. SEA as a percentage of sales increased by 360 basis points year over year, primarily due to the deleveraging effect of lower volumes in the quarter, which we expect will be temporary.

Speaker #5: Despite lower year over year volumes . Selling , engineering , and administrative expenses were $49.2 million , increasing $3.1 million year over year , driven primarily by $1.2 million in transaction costs associated with the UDI live acquisition Higher personnel costs and an additional month of smart cover .

Speaker #5: SCA costs, offset by reduced incentive compensation expense, based upon the first quarter results. SCA as a percentage of sales increased by 360 basis points year over year, primarily due to the deleveraging effect of lower volumes in the quarter, which we expect will be temporary as a result.

Daniel Weltzien: As a result, operating earnings were approximately $35.2 million, and operating margin was 17.4%, compared to a record 22.2% in the prior year period. As awarded projects begin in H2, we expect operating leverage to improve while maintaining our typical level of cost discipline. The effective income tax rate was 24.8% compared to 24.4% last year. Diluted earnings per share were $0.93 compared to $1.30 in the prior year period. Primary working capital as a percentage of sales decreased from 20.9% at year-end to 20.0% as of 31 March 2026. We generated strong free cash flow in the quarter of about $30 million in line with Q1 of 2025. As is normal, our Q1 reflected typical seasonality with incentive compensation and retirement plan contributions paid out for the previous year.

Dan Weltzien: As a result, operating earnings were approximately $35.2 million, and operating margin was 17.4%, compared to a record 22.2% in the prior year period. As awarded projects begin in H2, we expect operating leverage to improve while maintaining our typical level of cost discipline. The effective income tax rate was 24.8% compared to 24.4% last year. Diluted earnings per share were $0.93 compared to $1.30 in the prior year period. Primary working capital as a percentage of sales decreased from 20.9% at year-end to 20.0% as of 31 March 2026. We generated strong free cash flow in the quarter of about $30 million in line with Q1 of 2025. As is normal, our Q1 reflected typical seasonality with incentive compensation and retirement plan contributions paid out for the previous year.

Speaker #5: Operating earnings were approximately $35.2 million, and operating margin was 17.4% compared to a record 22.2% in the prior year period, as awarded projects begin in the second half.

Speaker #5: We expect operating leverage to improve while maintaining our typical level of cost discipline. The effective income tax rate was 24.8%, compared to 24.4% last year.

Speaker #5: Diluted earnings per share were $0.93, compared to $1.30 in the prior year period. Primary working capital as a percentage of sales decreased from 20.9% at year-end to 20.0% as of March 31, 2026.

Speaker #5: We generated strong free cash flow in the quarter of about $30 million , in line with the first quarter of 2025 . As is normal , our first quarter reflected typical seasonality , with incentive compensation and retirement plan contributions paid out for the previous year .

Speaker #5: In the first quarter of 2026, we repurchased 256,000 shares for a total of $38 million and have $115 million left on our share repurchase authorization.

Daniel Weltzien: In Q1 2026, we repurchased 256,000 shares for a total of $38 million and have $115 million left on our share repurchase authorization. With that, I'll turn it back over to Ken.

Dan Weltzien: In Q1 2026, we repurchased 256,000 shares for a total of $38 million and have $115 million left on our share repurchase authorization. With that, I'll turn it back over to Ken.

Speaker #5: With that, I'll turn it back over to Ken.

Speaker #3: Thanks , Dan . Before I give the outlook , I want to highlight the acquisition we announced this morning . Please turn to slide seven .

Kenneth Bockhorst: Thanks, Dan. Before I give the outlook, I want to highlight the acquisition we announced this morning. Please turn to slide 7. We signed a definitive agreement to acquire UDlive for $100 million, funded with cash on hand plus contingent consideration. UDlive, a UK-based provider of hardware-enabled software solutions for sewer line monitoring, complements SmartCover by extending our sewer monitoring capabilities across a broader range of use cases, network conditions, and geographies. Much like SmartCover in the US, UDlive has built a leading position in the UK, pairing low power, easy-to-install sensors with proprietary analytic software that delivers continuous real-time insight into sewer network conditions. The value and differentiation of UDlive's sewer line monitoring technology is evidenced by a 90% tender success rate since inception and routinely high technology assessment scores from utilities and consultants. Please turn to slide 8.

Ken Bockhorst: Thanks, Dan. Before I give the outlook, I want to highlight the acquisition we announced this morning. Please turn to slide 7. We signed a definitive agreement to acquire UDlive for $100 million, funded with cash on hand plus contingent consideration. UDlive, a UK-based provider of hardware-enabled software solutions for sewer line monitoring, complements SmartCover by extending our sewer monitoring capabilities across a broader range of use cases, network conditions, and geographies. Much like SmartCover in the US, UDlive has built a leading position in the UK, pairing low power, easy-to-install sensors with proprietary analytic software that delivers continuous real-time insight into sewer network conditions. The value and differentiation of UDlive's sewer line monitoring technology is evidenced by a 90% tender success rate since inception and routinely high technology assessment scores from utilities and consultants. Please turn to slide 8.

Speaker #3: We signed a definitive agreement to acquire UDI live for $100 million , funded with cash on hand , plus contingent consideration . Udiliv , a UK based provider of hardware enabled software solutions for sewer line monitoring , complements smart cover by extending our sewer monitoring capabilities across a broader range of use cases .

Speaker #3: Network conditions and geographies much like Smart Cover in the US . Udiliv has built a leading position in the U.K. , pairing low power , easy to install sensors with proprietary analytics software that delivers continuous , real time insight into sewer network conditions .

Speaker #3: The value and differentiation of UHD Live's sewer line monitoring technology is evidenced by a 90% success rate since inception, and routinely high technology assessment scores from utilities and consultants.

Speaker #3: Please turn to slide eight. The combination of Smart Cover and UDLive within our Blue Edge suite of solutions positions Badger Meter Inc.

Kenneth Bockhorst: The combination of SmartCover and UDlive within our BlueEdge suite of solutions positions Badger Meter as a global leader in sewer line monitoring, offering customers options across hardware-enabled software platforms and communications configurations consistent with our Choice Matters approach. For those familiar with our history, there's a clear parallel to our acquisitions of ATI and s::can, which together created that comprehensive water quality platform and extended our geographic reach. The strategic rationale for UDlive and SmartCover is similar within the sewer line monitoring market. In the trailing 12-month period ended February 2026, UDlive generated approximately $22 million in revenue and delivered positive operating profit. The transaction will be accretive to EPS in year one, and we anticipate to close at the end of April. We believe our global channels can further accelerate UDlive's growth and enhance operating leverage over time.

Ken Bockhorst: The combination of SmartCover and UDlive within our BlueEdge suite of solutions positions Badger Meter as a global leader in sewer line monitoring, offering customers options across hardware-enabled software platforms and communications configurations consistent with our Choice Matters approach. For those familiar with our history, there's a clear parallel to our acquisitions of ATI and s::can, which together created that comprehensive water quality platform and extended our geographic reach. The strategic rationale for UDlive and SmartCover is similar within the sewer line monitoring market. In the trailing 12-month period ended February 2026, UDlive generated approximately $22 million in revenue and delivered positive operating profit. The transaction will be accretive to EPS in year one, and we anticipate to close at the end of April. We believe our global channels can further accelerate UDlive's growth and enhance operating leverage over time.

Speaker #3: As a global leader in sewer line monitoring, offering customers options across hardware-enabled software platforms and communications configurations. Consistent with our Choice Matters approach.

Speaker #3: For those familiar with our history, there's a clear parallel to our acquisitions of ATI and S. Khan, which together created a comprehensive water quality platform and extended our geographic reach.

Speaker #3: The strategic rationale for UD Live and Smart Cover is similar within the sewer line monitoring market. In the trailing 12-month period ended February 2026,

Speaker #3: Udiliv generated approximately $22 million in revenue and delivered positive operating profit. The transaction will be accretive to EPS in year one, and we anticipate the close at the end of April.

Speaker #3: We believe our global channels can further accelerate UD Live's growth and enhance operating leverage over time. Now, looking ahead, we continue to expect 2026 activity to be back-half weighted as awarded Army projects advance into deployment.

Kenneth Bockhorst: Now looking ahead, we continue to expect 2026 activity to be back half-weighted as awarded AMI projects advance into deployment. As you're aware, we typically don't provide formal guidance. However, we recognize that investors are navigating this project pacing dynamic for the first time in several years. With that in mind, we are offering additional transparency to our current view, informed by today's inputs of revenue pacing for the remainder of the year. As awarded projects enter deployment and short cycle orders recover from Q1 levels, we expect sequential improvement in absolute quarterly revenue dollars as the year progresses, resulting in full year 2026 revenue, excluding the UDlive acquisition, to be in line with 2025.

Ken Bockhorst: Now looking ahead, we continue to expect 2026 activity to be back half-weighted as awarded AMI projects advance into deployment. As you're aware, we typically don't provide formal guidance. However, we recognize that investors are navigating this project pacing dynamic for the first time in several years. With that in mind, we are offering additional transparency to our current view, informed by today's inputs of revenue pacing for the remainder of the year. As awarded projects enter deployment and short cycle orders recover from Q1 levels, we expect sequential improvement in absolute quarterly revenue dollars as the year progresses, resulting in full year 2026 revenue, excluding the UDlive acquisition, to be in line with 2025.

Speaker #3: As you're aware, we typically don't provide formal guidance. However, we recognize that investors are navigating this project pacing dynamic for the first time in several years.

Speaker #3: With that in mind, we are offering additional transparency to our current view, informed by today's inputs of revenue pacing for the remainder of the year as awarded projects.

Speaker #3: Enter deployment in short cycle orders. Recover from first quarter levels. We expect sequential improvement in absolute quarterly revenue dollars as the year progresses, resulting in full year 2026 revenue.

Speaker #3: Excluding the UD live acquisition to be in line with 2025 . More specifically , we expect second quarter 2026 organic revenue dollars to sequentially improve from the trough of Q1 , but expect them to be down year over year against the highest quarterly revenue revenue figure in the company's history .

Kenneth Bockhorst: More specifically, we expect Q2 2026 organic revenue dollars to sequentially improve from the trough of Q1, but expect them to be down year over year against the highest quarterly revenue figure in the company's history. In the near term, our focus remains on disciplined execution to manage near-term variability while building momentum throughout the year. Importantly, our financial model is built to support our capital allocation priorities across uneven operating conditions, enabling continued investment in the business, returning cash to shareholders, and value-enhancing M&A while maintaining a strong balance sheet. With that, operator, please open the line for questions.

Ken Bockhorst: More specifically, we expect Q2 2026 organic revenue dollars to sequentially improve from the trough of Q1, but expect them to be down year over year against the highest quarterly revenue figure in the company's history. In the near term, our focus remains on disciplined execution to manage near-term variability while building momentum throughout the year. Importantly, our financial model is built to support our capital allocation priorities across uneven operating conditions, enabling continued investment in the business, returning cash to shareholders, and value-enhancing M&A while maintaining a strong balance sheet. With that, operator, please open the line for questions.

Speaker #3: In the near term , our focus remains on disciplined execution to manage near-term variability while building momentum throughout the year Importantly , our financial model is built to support our capital allocation priorities across uneven operating conditions , enabling continued investment in the business , returning cash to shareholders , and value enhancing M&A .

Speaker #3: While maintaining a strong balance sheet. With that, operator, please open the line for questions.

Operator 2: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Nathan Jones with Stifel. You may proceed with your question.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Nathan Jones with Stifel. You may proceed with your question.

Speaker #1: We will now begin the question and answer session . Please limit yourself to one question and one follow up . If you'd like to ask a question , please press star one to raise your hand to withdraw your question , press star one again .

Speaker #1: We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device.

Speaker #1: Please stand by while we compile the compile the Q&A roster Your first question comes from the line of Nathan Jones with Stifel . You may proceed with .

Nathan Jones: Good morning, everyone.

Speaker #6: Your morning , everyone Good morning everyone .

Kenneth Bockhorst: Hey, good morning.

Ken Bockhorst: Hey, good morning.

Speaker #3: Hey . Good morning

Nathan Jones: I guess you said. I'll start with the short cycle orders first. You talked about maybe $15 or $20 million less than expected on that, which is half or more of the miss to consensus during the quarter. I have been around with Badger for long enough to remember the volatility in some of those. Is there any color you can give us on what the underlying reasons for that were? There was some pretty bad weather in the Northeast during the quarter. Is it weather related or something else? Any kind of color you can give us on that?

Speaker #6: She said , I'll start with the short cycle orders first . You talked about maybe 15 or 20 million less than expected on that , which is , you know , half or more of of the , minister consensus during the quarter .

Speaker #6: I have been around with Badger for long enough to remember the volatility in some of those. But is there any color you can give us on, you know, what the underlying reasons for that were?

Speaker #6: I mean , there was some pretty bad weather in the northeast during the quarter . Is it weather related or something else ? Any , any kind of color you can give us on that ?

Kenneth Bockhorst: Yeah. I think the key to maybe remind the group, some people newer to the story maybe, that the unevenness that you have recognized because you followed us for a long time, is not new, as we talked about. There's really not one underlying thing. It's selling to 50,000 utilities across the country through various different replacement cycles. The variability's always been there, and we've talked about this a few times. Sometimes the variability is there in an equal amount to the high side. When it's to the high side, it doesn't really affect people's view very much, because that's all goodness. In this particular case, I wouldn't limit it to one thing. It just happened at this particular time, an unfortunate timing, given what Bob had just talked about on where we are in the midst of this air pocket.

Ken Bockhorst: Yeah. I think the key to maybe remind the group, some people newer to the story maybe, that the unevenness that you have recognized because you followed us for a long time, is not new, as we talked about. There's really not one underlying thing. It's selling to 50,000 utilities across the country through various different replacement cycles. The variability's always been there, and we've talked about this a few times. Sometimes the variability is there in an equal amount to the high side. When it's to the high side, it doesn't really affect people's view very much, because that's all goodness. In this particular case, I wouldn't limit it to one thing. It just happened at this particular time, an unfortunate timing, given what Bob had just talked about on where we are in the midst of this air pocket.

Speaker #3: Yeah . So , you know , I think the key to maybe remind the group some people knew her to the story , maybe , you know , that the unevenness that you have recognized because you followed us for a long time .

Speaker #3: Is not new . As we talked about . And , and there's really not one underlying thing . It's , you know , selling to 50,000 utilities across the country through various different replacement cycles .

Speaker #3: The variability has always been there . And , you know , we've talked about this a few times . You know , sometimes the variability is there in an equal amount to the high side .

Speaker #3: But when it's the high side , you know , it doesn't really affect people's view very much because that's all goodness . But in this particular case , I wouldn't , I wouldn't limit it to one thing .

Speaker #3: It's just happened at this particular time. And unfortunate timing, given what Bob had just talked about on where we are in the midst of this air pocket.

Kenneth Bockhorst: not really one thing, and relatively normal.

Ken Bockhorst: not really one thing, and relatively normal.

Speaker #3: But not—not really one thing. And relatively normal.

Robert Wrocklage: I would just add to say, certainly we're not chalking it up to geographic weather by any means. While it is generalized, if we look at where, from our look at customer segmentation of where the weakness came from, it's definitely indicative more of timing aspects than certainly anything related to our positioning in the market or share or other things. This is absolutely timing based.

Bob Wrocklage: I would just add to say, certainly we're not chalking it up to geographic weather by any means. While it is generalized, if we look at where, from our look at customer segmentation of where the weakness came from, it's definitely indicative more of timing aspects than certainly anything related to our positioning in the market or share or other things. This is absolutely timing based.

Speaker #4: I would just add to say , certainly we're not chalking it up to geographic weather by any means . And , you know , while it is generalized , if we look at where from our look at customer segmentation of where the weakness came from , it's definitely indicative more of timing aspects than certainly anything related to our positioning in the market or share or other things .

Speaker #4: So this is absolutely timing based.

Nathan Jones: I guess I'll ask one on PRASA. You talked about having got the first PO for that, which is awesome, and expecting the first installations to start mid-year. Are you more confident today that that project will ramp up on time, and ramp up in H2? I guess investors have been concerned that the Puerto Rican government hasn't been exactly the most reliable, in terms of getting things done, not for Badger, but just overall over the last few years. Just your level of confidence that that really does ramp up in H2.

Speaker #6: I guess I'll ask one on price. You talked about having got the first PO for that, which is awesome, and expecting the first installations to start mid-year.

Speaker #6: Are you more confident today that that that project will ramp up on time and ramp up in the second half ? I guess investors have been concerned that , you know , the Puerto Rican government's not hasn't been exactly the most reliable in terms of getting things done .

Speaker #6: Not for Badger, but just overall over the last few years. So just your level of confidence that that really does ramp up in the back half of the year.

Kenneth Bockhorst: Yeah. Bob will probably have something to add here as well since he's managing that very closely. The fact that we brought it up last month, I think, shows that we already had quite a bit of confidence in it. The fact that we have a PO, the fact that we know that installation partners are lined up, the confidence is higher today than it was before. Bob put his hands up, so he agrees.

Ken Bockhorst: Yeah. Bob will probably have something to add here as well since he's managing that very closely. The fact that we brought it up last month, I think, shows that we already had quite a bit of confidence in it. The fact that we have a PO, the fact that we know that installation partners are lined up, the confidence is higher today than it was before. Bob put his hands up, so he agrees.

Speaker #3: Yeah . So , so Bob will probably have something to add here as well since he's managing that very closely . But you know , the fact that we brought it up last month , I think , you know , shows that we already had quite a , you know , quite a bit of confidence in it .

Speaker #3: The fact that we have a PO, the fact that we know that installation partners are lined up, the confidence is higher today than it was before.

Speaker #3: So, Bob—Bob put his hands up, so he agrees.

Nathan Jones: Okay, fair enough. I'll pause it on. Thank you very much.

Speaker #6: Okay. Fair enough. I'll pass it on. Thank you very much.

Kenneth Bockhorst: All right, thank you.

Ken Bockhorst: All right, thank you.

Speaker #3: All right. Thank you.

Operator 2: Your next question comes from the line of Jeff Reeves with RBC Capital Markets. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Jeff Reeves with RBC Capital Markets. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of Jeff Reeve with RBC Capital Markets. Your line is open. Please go ahead.

Jeff Reeves: Good morning. Appreciate all the color thus far. For your updated guidance, what's the risk that some of the late H2 starts push into 2027? Is this guidance appropriately conservative now?

Jeff Reive: Good morning. Appreciate all the color thus far. For your updated guidance, what's the risk that some of the late H2 starts push into 2027? Is this guidance appropriately conservative now?

Speaker #7: Hey . Good morning . Appreciate all the color thus far for your updated guidance . What's the risk that some of the late two H .

Speaker #7: You know, starts push into 2027? And, like, is this guidance appropriately conservative now?

Kenneth Bockhorst: I would say this additional transparency, before I agree, it's guidance. Because, again, given the variability, it's hard to guide from quarter to quarter or year to year. As the year progresses and we get closer to each of these projects getting into deployment mode, we see more activities. On some of these that you can see on the list are turnkey. We're actively engaged with them on the upfront planning. For those that are supply only, yeah, in some cases we have POs, in some cases they're still planning. As we get closer and closer to that, our confidence level is better today than it was 90 days ago.

Speaker #3: So I so I would say this additional transparency before I agreed it's guidance because , you know , again , given the variability , it's hard to guide from quarter to quarter or year to year , but as the year progresses and we get closer to each of these projects , getting into deployment mode , you know , we see more activity on some of these that you can see on the list are turnkey .

Ken Bockhorst: I would say this additional transparency, before I agree, it's guidance. Because, again, given the variability, it's hard to guide from quarter to quarter or year to year. As the year progresses and we get closer to each of these projects getting into deployment mode, we see more activities. On some of these that you can see on the list are turnkey. We're actively engaged with them on the upfront planning. For those that are supply only, yeah, in some cases we have POs, in some cases they're still planning. As we get closer and closer to that, our confidence level is better today than it was 90 days ago.

Speaker #3: We're actively engaged with them on the upfront planning . For those that are supply only . Yeah . In some cases we have POS , in some cases they're still planning .

Speaker #3: So as we get closer and closer to that, our confidence level is better today than it was 90 days ago.

Jeff Reeves: Appreciate that. Could you just remind us what specifically is in that short cycle mix, maybe what percent of sales, and is that muni budget driven? Is it macro driven? Kind of what drives that?

Jeff Reive: Appreciate that. Could you just remind us what specifically is in that short cycle mix, maybe what percent of sales, and is that muni budget driven? Is it macro driven? Kind of what drives that?

Speaker #7: Appreciate that. And then, can you just remind us what specifically is in that short cycle mix? Maybe what percent of sales, and is that muni budget driven?

Speaker #7: Is it macro-driven? Kind of what drives that?

Kenneth Bockhorst: Yeah. I think a lot of people, even though we talk about the short term variability, we talk about why we don't necessarily size or talk much about backlog, is because the majority of the business is short cycle. Distribution is very short cycle. Individual utilities that we sell directly to that are just doing the ordinary buying that aren't in an in-flight AMI project are oftentimes ordering, and those tend to be short cycle. Utilities order them when they want them. Everybody in the industry is at normal lead time. We've basically reverted back to normalized lead times and backlog from before the supply and COVID and the whole situation. Even when backlog was elevated, frankly, it isn't like it was elevated to something. It went from a short visibility to slightly more visibility.

Ken Bockhorst: Yeah. I think a lot of people, even though we talk about the short term variability, we talk about why we don't necessarily size or talk much about backlog, is because the majority of the business is short cycle. Distribution is very short cycle. Individual utilities that we sell directly to that are just doing the ordinary buying that aren't in an in-flight AMI project are oftentimes ordering, and those tend to be short cycle. Utilities order them when they want them. Everybody in the industry is at normal lead time. We've basically reverted back to normalized lead times and backlog from before the supply and COVID and the whole situation. Even when backlog was elevated, frankly, it isn't like it was elevated to something. It went from a short visibility to slightly more visibility.

Speaker #3: Yeah . So , so I think a lot of people , even though we talk about the short term variability , we talk about why we don't necessarily size or talk much about backlog is because the majority of the business is short cycle .

Speaker #3: So , you know , distribution is very short cycle . Individual utilities that we sell directly to that are just doing the ordinary buying that aren't in in flight .

Speaker #3: AMI project are oftentimes ordering, and those tend to be short cycle, and utilities order them when they want them. Everybody in the industry is at normal lead times.

Speaker #3: So, we basically reverted back to normalized lead times from before, and normalized lead times and backlog to before the supply and COVID whole situation.

Speaker #3: And even when backlog was elevated , frankly , it isn't like it was elevated to something , you know , it was went from a short visibility to slightly more visibility .

Kenneth Bockhorst: It wasn't like we had a huge backlog that we were chunking through.

Ken Bockhorst: It wasn't like we had a huge backlog that we were chunking through.

Speaker #3: It wasn't like we had a huge backlog that we were chunking through.

Jeff Reeves: Got it. Appreciate that. I'll pass it on.

Jeff Reive: Got it. Appreciate that. I'll pass it on.

Speaker #7: Got it. Appreciate that. I'll pass it on.

Operator 2: Your next call comes from the line of Quinn Frederickson with Baird. Your line is open. Please go ahead.

Operator: Your next call comes from the line of Quinn Frederickson with Baird. Your line is open. Please go ahead.

Speaker #1: Your next call comes from the line of Quinn Frederickson with Baird. Your line is open. Please go ahead.

Quinn Frederickson: Hi. Excuse me. Good morning. Thanks for taking my questions. Wanted to build on your commentary there about short cycle order weakness being timing related. Does the flat organic outlook contemplate any recovery opportunity relative to that $15 to 20 million, or does it assume that that short cycle weakness persists here?

Speaker #8: Hi . Excuse me . Good morning . Thanks for taking my questions . Wanted to build on your commentary there about short cycle order weakness being timing related .

Speaker #8: Does the flat organic outlook contemplate any recovery opportunity relative to that $15 to $20 million, or does it assume that that short cycle weakness persists here?

Kenneth Bockhorst: Well, by definition that it is short cycle, we don't have a tremendous amount of. It isn't like we've seen a few weeks of excess purchase orders coming through that would change our view, but our view is informed by talking to our distributors and hearing what they're saying in the field because they're out talking directly to people. It is informed by the direct sales relationships that we have with our direct sales force. We are not getting from the market in any way that people are constraining budgets for the normal replacement demand that comes with metering. It just happens to be an air pocket at the same time that there's a project air pocket.

Ken Bockhorst: Well, by definition that it is short cycle, we don't have a tremendous amount of. It isn't like we've seen a few weeks of excess purchase orders coming through that would change our view, but our view is informed by talking to our distributors and hearing what they're saying in the field because they're out talking directly to people. It is informed by the direct sales relationships that we have with our direct sales force. We are not getting from the market in any way that people are constraining budgets for the normal replacement demand that comes with metering. It just happens to be an air pocket at the same time that there's a project air pocket.

Speaker #3: Well , so by definition that it is short cycle . We don't have a tremendous amount of , you know , it isn't like we've seen , you know , weak a few weeks of excess purchase orders coming through that would change our view .

Speaker #3: But our view is informed by talking to our distributors and hearing what they're saying in the field, because they're out talking directly to people.

Speaker #3: It is informed by the direct sales relationships that we have with our direct sales force. We are not getting from the market in any way that people are constraining budgets for the normal replacement demand that comes with metering.

Speaker #3: It just happens to be an air pocket at the same time that there's a project air pocket.

Quinn Frederickson: Sure. Okay. Thank you.

Speaker #8: Sure. Okay. Thank you. I think.

Daniel Weltzien: I think the thing I'll reinforce here is the variability that we're talking about, specific to Q1, that is now more visible has always existed, inclusive of 2023 to 2025 timeframe. It's just that it was less visible in the revenue outcomes because of the backlog condition combined with the projects in flight. I just want to make it clear that this variability is and has always existed. It's just happening to be more visible in this particular Q1 of 2026.

Dan Weltzien: I think the thing I'll reinforce here is the variability that we're talking about, specific to Q1, that is now more visible has always existed, inclusive of 2023 to 2025 timeframe. It's just that it was less visible in the revenue outcomes because of the backlog condition combined with the projects in flight. I just want to make it clear that this variability is and has always existed. It's just happening to be more visible in this particular Q1 of 2026.

Speaker #4: The thing, the thing I'll reinforce here is the variability that we're talking about specific to Q1 that is now more visible, has always existed, inclusive of the 2023 to 2025 time frame.

Speaker #4: It's just that it was less visible in the revenue outcomes because of the backlog condition . Combined with the projects in flight . And so I just want to make it clear that , you know , this variability is and has always existed .

Speaker #4: It's just happening to be more visible in this particular first quarter of 2026.

Quinn Frederickson: Okay. On the flat organic outlook for the year, I just wanted to see if we could dial in Q2 versus H2 a little bit more. Ken, you mentioned Q2 would be down year-over-year. Should we assume kind of a similar decline to Q1?

Speaker #8: Okay. And then on the flat organic outlook for the year, I just wanted to see if we could dial in to Q2 versus the second half a little bit more.

Speaker #8: Can you mention if Q2 would be down year over year? Should we assume kind of a similar decline to Q1?

Kenneth Bockhorst: Well, again, given the short cycle nature of the largest portion of the business, I'm not going to get into sizing it. I wanted to give you enough detail to make sure that everyone understands that we don't just snap back to growth on a year-over-year quarter basis, especially against an all-time record quarter. We're just trying to be realistic. I don't think I'm looking to size it to a number in between, but we absolutely expect sequential growth that is likely below last year.

Ken Bockhorst: Well, again, given the short cycle nature of the largest portion of the business, I'm not going to get into sizing it. I wanted to give you enough detail to make sure that everyone understands that we don't just snap back to growth on a year-over-year quarter basis, especially against an all-time record quarter. We're just trying to be realistic. I don't think I'm looking to size it to a number in between, but we absolutely expect sequential growth that is likely below last year.

Speaker #3: Well , again , given the short cycle nature of the largest portion of the business , I'm not going to get into sizing it .

Speaker #3: I wanted to give you enough detail to make sure that everyone understands that we don't just snap back to growth on a year over year quarter basis , especially against an all time record quarter .

Speaker #3: So we're just trying to be realistic. I don't think I'm looking to size it to a number in between, but we—

Speaker #3: Absolutely expect growth. That is likely below last year.

Quinn Frederickson: All right. Thank you very much.

Kenneth Bockhorst: Sure.

Ken Bockhorst: Sure.

Speaker #8: All right. Thank you very much.

Operator 2: Your next question comes from the line of Andrew Krill with Deutsche Bank. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Andrew Krill with Deutsche Bank. Your line is open. Please go ahead.

Speaker #3: Sure

Speaker #1: Your next question comes from the line of Andrew Crill with Deutsche Bank. Your line is open. Please go ahead.

Andrew Krill: Hi. Thanks. Good morning, everyone. Wanted to ask on gross margins; they're held up well in Q1 considering. Anything you'd call out there? Could you give us some help on how they should trend the rest of the year? Do you think still near the higher end of your 39% to 42% target range? Or could there be some sequential pressure as these projects ramp? Thanks.

Speaker #6: Hi . Thanks , morning , everyone . I want to ask on gross margins . They're held up well in the first quarter .

Speaker #6: Considering anything you'd call out there. And then, could you give us some help on how these should trend the rest of the year?

Speaker #6: Do you think you're still near the higher end of your 39 to 42 percent target range? Or could there be some sequential pressure as these projects ramp up?

Daniel Weltzien: Yeah. I think the important thing to point out here is a couple things. Number one, the 39% to 42% range we still have confidence in, and that's still where we anticipate operating for the rest of the year. In terms of the Q1 result, as we pointed out in the prepared remarks, some of the areas where we saw strength in Q1 were in those around the meter technologies. Of course, our BEACON SaaS revenue continuing to chug along in the recurring nature that it is, and all of those things being above line average margin, which helped us to get to this blended rate in Q1. Certainly as we progress throughout the year, again, our expectation is to continue to operate within that range.

Dan Weltzien: Yeah. I think the important thing to point out here is a couple things. Number one, the 39% to 42% range we still have confidence in, and that's still where we anticipate operating for the rest of the year. In terms of the Q1 result, as we pointed out in the prepared remarks, some of the areas where we saw strength in Q1 were in those around the meter technologies. Of course, our BEACON SaaS revenue continuing to chug along in the recurring nature that it is, and all of those things being above line average margin, which helped us to get to this blended rate in Q1. Certainly as we progress throughout the year, again, our expectation is to continue to operate within that range.

Speaker #6: Thanks .

Speaker #5: Yeah, I think the important thing to point out here is a couple things. Number one, the 39% to 42% range.

Speaker #5: We still have confidence in . And that's still where we anticipate , you know , operating for the rest of the year in terms of , of the Q1 result , you know , as we pointed out in the prepared remarks , some of the areas where we saw strength in the first quarter were in those around the meter technologies .

Speaker #5: Of course , our beacon SaaS revenue continuing to chunk along in the recurring nature that it is . And all of those things being above line , average margin , which helped us to get to this , you know , blended rate in the first quarter .

Speaker #5: So, certainly as we progress throughout the year, again, our expectation is to continue to operate within that range we've talked about previously.

Daniel Weltzien: We've talked about previously, when you think about things like turnkey projects, they may have different margin profiles than sales through distribution, for example. All of those mixed factors may exist, but again just reiterating that range that we talk about historically is still within what we think is reasonable.

Dan Weltzien: We've talked about previously, when you think about things like turnkey projects, they may have different margin profiles than sales through distribution, for example. All of those mixed factors may exist, but again just reiterating that range that we talk about historically is still within what we think is reasonable.

Speaker #5: When you think about things like turnkey projects , they may have different margin profiles than , you know , sales through distribution , for example .

Speaker #5: So all of those mix factors may exist . But again , just reiterating that , that , that , that range that we talked about historically is still within what we think is , reasonable .

Kenneth Bockhorst: Yeah. Just to add to that when we think about it from an operating point of view, your question was, what do we see as these projects ramp? Well, first of all our value-based pricing principles all remain intact. We're extracting all the price that we deserve for providing this value that, at a price, customers see the value to invest in. Whether it's a little lower on the front side on gross margin, it feels really good on the SEA leverage side and vice versa. Operating profit in any of these cases is something we're good with.

Ken Bockhorst: Yeah. Just to add to that when we think about it from an operating point of view, your question was, what do we see as these projects ramp? Well, first of all our value-based pricing principles all remain intact. We're extracting all the price that we deserve for providing this value that, at a price, customers see the value to invest in. Whether it's a little lower on the front side on gross margin, it feels really good on the SEA leverage side and vice versa. Operating profit in any of these cases is something we're good with.

Speaker #3: Yeah . And just to add that , when we think about it from an operating point of view , your question was , what do we see as these projects ramp ?

Speaker #3: Well , first of all , our value based pricing principles , all remain intact . So we're extracting all the price that we deserve for for providing this value that at a price that customers see the value to invest in .

Speaker #3: So whether it's a little lower on the front side, on gross margin, it feels really good on the leverage side, and vice versa.

Speaker #3: So, operating profit in any of these cases is something we're good with.

Andrew Krill: Thanks. That's helpful. Then switching to Section 232 tariffs, and it's been a big debate the past couple of weeks with some of the changes to how those are implemented. Just, can you give us any color on how that impacts Badger Meter, in particular the Nogales facility? I think if everything or most of what you were bringing back into the US used to be excluded under USMCA, is that now a headwind you have to deal with? Maybe how are you going about doing that? Thanks.

Speaker #6: Thanks, that's helpful. And then, switching to Section 232 tariff has been a big debate the past couple of weeks with some of the changes.

Speaker #6: You know, to how those are implemented. Can you give us any color on how that impacts Badger Meter Inc in particular, the Nogales facility?

Speaker #6: You know , I think if everything or most of what you are bringing back into the US used to be excluded under Usmca , is that now , you know , a headwind you have to deal with and maybe , you know , how are you going about doing that ?

Daniel Weltzien: Yeah. The team in Nogales, and frankly here in the US that's managing this for us, continues to do a great job in terms of managing the supply chain to continue to optimize costs of our products. That includes the tariff situation. The short answer is, if we look at our tariff exposure over the last 12 months, it hasn't really changed even in light of recent news as we sit here on 17 April. Always subject to change, but as we sit here today, I don't think about tariffs differently than I have over the last couple of quarters.

Dan Weltzien: Yeah. The team in Nogales, and frankly here in the US that's managing this for us, continues to do a great job in terms of managing the supply chain to continue to optimize costs of our products. That includes the tariff situation. The short answer is, if we look at our tariff exposure over the last 12 months, it hasn't really changed even in light of recent news as we sit here on 17 April. Always subject to change, but as we sit here today, I don't think about tariffs differently than I have over the last couple of quarters.

Speaker #6: Thanks .

Speaker #5: Yeah . The the team in Nogales and frankly , here in the US , that's that's managing this for us continues continues to do a great job in terms of managing the supply chain to continue to to optimize , you costs of our products .

Speaker #5: And that includes the tariff situation , the short answer is , if we look at our tariff exposure over the last 12 months , it hasn't really changed even in light of of recent , you know , news .

Speaker #5: As we sit here on April 17th , always subject to change , but , but as we sit here today , I don't think about tariffs differently than I have over the last couple of quarters

Andrew Krill: Thank you.

Operator 2: Your next question comes from the line of Bobby Zulfar with Raymond James. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Bobby Zulfar with Raymond James. Your line is open. Please go ahead.

Speaker #6: Thank you

Speaker #1: Your next question comes from the line of Bobby Zilber with Raymond James. Your line is open. Please go ahead.

Bobby Zulfar: Thanks for taking the question. I had come to the conclusion that your overall volumes of meters might be in the neighborhood of 20% elevated versus pre-COVID. What are your thoughts on that statement?

Bobby Zolper: Thanks for taking the question. I had come to the conclusion that your overall volumes of meters might be in the neighborhood of 20% elevated versus pre-COVID. What are your thoughts on that statement?

Speaker #9: Thanks for taking the question. I had come to the conclusion that your overall volumes of meters might be in the neighborhood of 20% elevated versus pre-COVID.

Speaker #9: What are your thoughts on that statement?

Kenneth Bockhorst: I don't have a lot of thoughts on your statement on that, and I don't mean that to be a snarky response. It's just that our revenue is so different. Not that we wanted to go into this much detail, but when you look at what Bob just talked about on projects between being turnkey or supply only, or the other dynamics that roll through, or the new products that we've added beyond the meter, I don't know how you'd draw that conclusion. We have gained meter share over the past few years, so that is that I'll agree to. But in terms of specific sizing, I don't think I'll get into that.

Ken Bockhorst: I don't have a lot of thoughts on your statement on that, and I don't mean that to be a snarky response. It's just that our revenue is so different. Not that we wanted to go into this much detail, but when you look at what Bob just talked about on projects between being turnkey or supply only, or the other dynamics that roll through, or the new products that we've added beyond the meter, I don't know how you'd draw that conclusion. We have gained meter share over the past few years, so that is that I'll agree to. But in terms of specific sizing, I don't think I'll get into that.

Speaker #3: I have—I don't have a lot of thoughts on your statement on that, and I don't mean that to be a snarky response.

Speaker #3: It's just that our revenue is so different . And not that we want to go into this much detail , but when you look at what Bob just talked about on projects between being between turnkey or supply only or the other dynamics that roll through or the new products that we've added beyond the meter , I don't know how you draw that conclusion .

Speaker #3: We have gained meter share over the past few years . So that is that I'll agree to . But but in terms of specific sizing , I don't think into that .

Bobby Zulfar: Okay, fair enough. Appreciate it. Sorry, just one clarifying question on the Section 232 tariffs. Does that get applied to the full value of either the meter or the cellular device when they go in and out of Mexico?

Bobby Zolper: Okay, fair enough. Appreciate it. Sorry, just one clarifying question on the Section 232 tariffs. Does that get applied to the full value of either the meter or the cellular device when they go in and out of Mexico?

Speaker #9: Okay . Fair enough . Appreciate it . And then sorry , just one clarifying question on the . 232 tariffs . Does that get applied to the full value of either the meter or the cellular device when they go in and out of Mexico

Daniel Weltzien: We certainly don't talk about tariffs on individual product line item levels. Any exposures that we do have are on the component side of our business as we're procuring materials generally.

Dan Weltzien: We certainly don't talk about tariffs on individual product line item levels. Any exposures that we do have are on the component side of our business as we're procuring materials generally.

Speaker #5: So, we don’t— we certainly don’t talk about tariffs on individual product line item levels. Any exposures that we do have are on the component side of our business, as we’re procuring materials generally.

Bobby Zulfar: All right, appreciate it. Thank you.

Bobby Zolper: All right, appreciate it. Thank you.

Daniel Weltzien: Bobby, just to point out, that's because of USMCA and our position within USMCA.

Dan Weltzien: Bobby, just to point out, that's because of USMCA and our position within USMCA.

Speaker #9: All right. Appreciate it. Thank you.

Speaker #5: And Bobby, just to point out, that's because of USMCA and our position within USMCA.

Bobby Zulfar: Okay. I'm assuming because you're getting your copper, your brass bodies in Milwaukee, those aren't getting tariffed themselves. It would just be the electrical equipment that's going into the meter and the cellular devices?

Bobby Zolper: Okay. I'm assuming because you're getting your copper, your brass bodies in Milwaukee, those aren't getting tariffed themselves. It would just be the electrical equipment that's going into the meter and the cellular devices?

Speaker #9: Okay . So I'm assuming like , because you're getting your copper , like your brass bodies in Milwaukee , those aren't getting tariff themselves .

Speaker #9: It would just be the electrical equipment that's going into the meter and the cellular devices.

Daniel Weltzien: Yeah. I'll remind you, the majority of the copper that we used is recycled brass, which is primarily in the US because you're not going to ship that around the world, typically. Yes, that's not where we have exposure. It's on things like electronics and other things that may be sourced elsewhere in the world. Again, as we're shipping products in and out of Mexico, USMCA provides us protections there from a tariff perspective.

Dan Weltzien: Yeah. I'll remind you, the majority of the copper that we used is recycled brass, which is primarily in the US because you're not going to ship that around the world, typically. Yes, that's not where we have exposure. It's on things like electronics and other things that may be sourced elsewhere in the world. Again, as we're shipping products in and out of Mexico, USMCA provides us protections there from a tariff perspective.

Speaker #5: Yeah , I'll remind you , the majority of the copper that we use is recycled brass , which is primarily in the US , because you're not going to ship that around the world typically .

Speaker #5: So, yes, that's not where we have exposures. It's on things like electronics and other things that may be sourced elsewhere in the world.

Speaker #5: But again, as we're shipping products in and out of Mexico, USMCA provides us protections there from a tariff perspective.

Bobby Zulfar: All right. Thank you very much. I appreciate it.

Bobby Zolper: All right. Thank you very much. I appreciate it.

Speaker #9: All right. Thank you very much. I appreciate it.

Operator 2: Your next question comes from the line of James Ko with Jefferies Financial Group. Your line is open. Please go ahead.

Operator: Your next question comes from the line of James Ko with Jefferies Financial Group. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of James Koh with Jefferies Financial Group. Your line is open. Please go ahead.

James Ko: Good morning. Thanks for taking questions here. I just wanted to kind of ask a question on the, what is it? The awarded project that you guys put on the slide. It seems like 7 out of 9 awarded projects involve full or partial competitive meter conversions. That's pretty impressive. What do you think is driving that success given the strong incumbent bias in the industry? And have you experienced any meaningful losses of your incumbent positions to competitors? Just wanted to ask that.

Speaker #10: Good morning . Thanks for taking questions here . I just wanted to kind of ask a question on the what's it . The awarded project that you guys put on the slide .

Speaker #10: So, it seems like seven out of nine awarded projects involve kind of full or partial competitive meter conversions. So that's pretty impressive.

Speaker #10: So what do you think is driving that success given the strong, kind of incumbent bias in the industry? And have you experienced any meaningful losses of your incumbent positions to competitors? Like, yeah, just wanted to ask that.

Kenneth Bockhorst: Yeah. Thanks James for the question. One of the dynamics that we've explained over the past several years is that our portfolio, the resiliency of the cellular AMI, the leadership position that we've taken in software. We've been saying now for a few years that we have been converting market share. When you look at some of the projects that we highlighted today, two of them are generation one fixed network combo utilities that used to be someone else's meter and someone else's radio. During generation two, the water utilities decided that they no longer wanted to be on a fixed network. They went out to RFP, and we won that. Then after winning the AMI RFP, because it wasn't a full product RFP, then we also converted the meters afterward.

Ken Bockhorst: Yeah. Thanks James for the question. One of the dynamics that we've explained over the past several years is that our portfolio, the resiliency of the cellular AMI, the leadership position that we've taken in software. We've been saying now for a few years that we have been converting market share. When you look at some of the projects that we highlighted today, two of them are generation one fixed network combo utilities that used to be someone else's meter and someone else's radio. During generation two, the water utilities decided that they no longer wanted to be on a fixed network. They went out to RFP, and we won that. Then after winning the AMI RFP, because it wasn't a full product RFP, then we also converted the meters afterward.

Speaker #3: Yeah . So , so thanks , James , for the question . Yeah . So , you know , one of the dynamics that we've explained over the past several years is that our portfolio , the resiliency of the cellular ami , the leadership position that we've taken in software , you know , we've been saying now for a few years that we have been converting market share .

Speaker #3: So when you look at some of the projects that we highlighted today, two of them are Generation One, fixed network combo utilities that used to be someone else's meter and someone else's radio.

Speaker #3: And during generation two , the the utilities , the water utilities decided that they no longer wanted to be on a fixed network .

Speaker #3: They went out to RFP and and we won that . And then after winning the Ami RFP , because it wasn't a full , full product , full product RFP , then we also converted the meters afterward .

Kenneth Bockhorst: We have two other products on here that were, one where we were the meter incumbent, but someone else's AMR radio was on it. Because of our relationship, our cellular technology leadership, we were able to convert someone from a competitive AMR drive-by to our ORION Cellular with BEACON SaaS revenue. We have others where we converted both meters and radios. For the most part, it's been because we've already been 121-year great leader in the industry for meters. Now we're also the leader in the industry for AMI, and we're pulling in both ways.

Ken Bockhorst: We have two other products on here that were, one where we were the meter incumbent, but someone else's AMR radio was on it. Because of our relationship, our cellular technology leadership, we were able to convert someone from a competitive AMR drive-by to our ORION Cellular with BEACON SaaS revenue. We have others where we converted both meters and radios. For the most part, it's been because we've already been 121-year great leader in the industry for meters. Now we're also the leader in the industry for AMI, and we're pulling in both ways.

Speaker #3: We have two other products on here that were one where we were the meter incumbent, but someone else's AMR radio was on it.

Speaker #3: And because of our , our relationship , our cellular technology leadership , we were able to convert someone from a competitive Amr drive by to our Orion Cellular with beacon SaaS revenue .

Speaker #3: We have others where we converted both meters and radios , but for the most part , it's been because we've already been 121 year great leader in the in the industry for meters .

Speaker #3: Now, we're also the leader in the industry for AMI, and we're pulling in both ways.

James Ko: Got it. Great. Yeah, that's very helpful. I wanted to ask one more clarification question on the short cycle orders here. It seems like there's no particular reason that kind of caused the slowdown. It's more kind of just inherent variability here. If this inherent variability kind of continues in a negative way throughout the year, does that pose downside risk to the guidance, or does the guidance just kind of assume the, what is it, improvement? Yeah, just want to kind of understand the dynamic a little bit better for the remainder of the year.

Speaker #10: Got it . Great . Yeah , that's very helpful . And I guess I wanted to ask one more clarification question on . Short cycle orders here .

Speaker #10: So it seems like there's no particular reason that kind of caused the slowdown . It's more kind of just inherent variability here . So if this like inherent variability kind of continues in a negative way , like throughout the year , like does that like pose downside risk to the guidance ?

Speaker #10: Or does the guidance just kind of assume , what is it improvement or ? Yeah , just wanted to kind of understand the dynamic a little bit better for the remainder of the year .

Kenneth Bockhorst: Yeah. The first thing that's important to remember in the metering industry is that nothing gets canceled. Things only move right. Because eventually you have to replace your meter, if you want to improve non-revenue water or conservation. Frankly, 80% of the market has a radio attached to it. Once the radio goes dark, you can't read the meter at all, and you'd have to go out and do it manually. The dynamics of the business are it only moves right. We have this timing issue here. We do expect some recovery. We don't expect it to stay on the weaker side of uneven. To that degree, it's still where we have the least amount of visibility, but we do expect some upside compared to the current quarter.

Ken Bockhorst: Yeah. The first thing that's important to remember in the metering industry is that nothing gets canceled. Things only move right. Because eventually you have to replace your meter, if you want to improve non-revenue water or conservation. Frankly, 80% of the market has a radio attached to it. Once the radio goes dark, you can't read the meter at all, and you'd have to go out and do it manually. The dynamics of the business are it only moves right. We have this timing issue here. We do expect some recovery. We don't expect it to stay on the weaker side of uneven. To that degree, it's still where we have the least amount of visibility, but we do expect some upside compared to the current quarter.

Speaker #3: Yeah . So , so the first thing that's important to remember in the metering industry is that nothing gets canceled . So things only move , right ?

Speaker #3: Because eventually you have to replace your meter if you want to improve non-revenue water or conservation. And frankly, 80% of the market has a radio attached to it.

Speaker #3: And once the radio goes dark, you can't read the meter at all. And you'd have to go out and do it manually.

Speaker #3: So , so the dynamics of the business are it only moves , right ? So , so we have this timing issue here .

Speaker #3: We do expect some recovery . We don't expect it to to stay on the on the weaker side of uneven . But you that to that degree , it's still where we have the least amount of visibility .

Speaker #3: But we do expect some upside compared to the current quarter.

James Ko: Got it. Thank you.

Kenneth Bockhorst: It looks like Bob wants to.

Ken Bockhorst: It looks like Bob wants to.

Daniel Weltzien: I'm just going to say, just at the risk of being overly pedantic, just realize what we're saying for the whole year is flat-ish. Okay? Don't hear flat-ish as flat. Hear flat-ish. In there's some variability, right? Not a wide degree of variability, but just to your points on what are you expecting, and how does the short cycle play out in future quarters? We're giving you the direction, but know that there's some variability accounted in that descriptor.

Bob Wrocklage: I'm just going to say, just at the risk of being overly pedantic, just realize what we're saying for the whole year is flat-ish. Okay? Don't hear flat-ish as flat. Hear flat-ish. In there's some variability, right? Not a wide degree of variability, but just to your points on what are you expecting, and how does the short cycle play out in future quarters? We're giving you the direction, but know that there's some variability accounted in that descriptor.

Speaker #10: Got it. Thank you.

Speaker #3: It looks like Bob wants to.

Speaker #4: I'm just going to say, just at the risk of being overly pedantic, just realize what we're saying for the whole year is flat-ish.

Speaker #4: Okay ? So don't hear flat ish as flat here . Flat ish . So in that in there , there's some variability , right ?

Speaker #4: But not a wide degree of variability, but just to your points on what you are expecting, and how does the short cycle play out in future quarters?

Speaker #4: We're giving you the direction, but know that there's some variability accounted for in that descriptor.

Operator 2: Your next question comes from the line of Michael Fairbanks with J.P. Morgan. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Michael Fairbanks with J.P. Morgan. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of Michael Fairbanks with J.P. Morgan. Your line is open. Please go ahead.

Michael Fairbanks: Hey, thanks for taking our questions. As we look at this new project-level disclosure, how should we think about the 800,000 connections over the last 3 years, kind of relative to overall volumes? Same question as we look ahead to the 2.6 to 3.6, just overall in terms of expectations.

Speaker #11: Hey , thanks for taking our questions . As we look at this new project level disclosure , how should we think about the 800,000 connections over the last three years ?

Speaker #11: Relative to overall volumes? And then, same question as we look ahead to the 2.6 to 3.6—just overall, in terms of expectations.

Kenneth Bockhorst: Yeah. Projects, again, with the variability between turnkey revenue driving much higher than supply only and some of the other pieces. We're not going to size the revenue of what they were, but certainly from what you can see, they were largely impactful. As you compare that, I would just tell you that $2.6 million, obviously, simple math is 3 times the size of $800,000. Now, don't go take a ruler and draw 300% up, but we do expect the next 3 to 5 years of these projects to be more than the last 3 years of those projects.

Ken Bockhorst: Yeah. Projects, again, with the variability between turnkey revenue driving much higher than supply only and some of the other pieces. We're not going to size the revenue of what they were, but certainly from what you can see, they were largely impactful. As you compare that, I would just tell you that $2.6 million, obviously, simple math is 3 times the size of $800,000. Now, don't go take a ruler and draw 300% up, but we do expect the next 3 to 5 years of these projects to be more than the last 3 years of those projects.

Speaker #3: Yeah, so, so projects again with the variability between turnkey revenue driving much higher than supply only, and some of the other pieces.

Speaker #3: So we're not going to size the revenue of what they were . But certainly from what you can see , they were largely impactful as you compare that , I would just tell you that , you know , 2.6 million , obviously , I'm simple math is three times the size of 800,000 .

Speaker #3: Now , don't go take a ruler and draw 300% up . But we do expect the , you know , the next 3 to 5 years of these projects to be more than the last three years of those .

Daniel Weltzien: I think the other thing I'll point out is, again, we've provided this additional level of detail this quarter, given what the result was, and we felt like it was important for analysts and investors to understand what's informing our view toward the forward look of the high single-digit outlook that we've continued to talk about consistently across the business. It's having had this visibility over the last number of years, frankly, as we saw these projects moving throughout that multi-year funnel that we talk about, and that's what's informed our view.

Dan Weltzien: I think the other thing I'll point out is, again, we've provided this additional level of detail this quarter, given what the result was, and we felt like it was important for analysts and investors to understand what's informing our view toward the forward look of the high single-digit outlook that we've continued to talk about consistently across the business. It's having had this visibility over the last number of years, frankly, as we saw these projects moving throughout that multi-year funnel that we talk about, and that's what's informed our view.

Speaker #5: I think the other thing I'll point out is , again , we've provided this additional level of detail . This quarter , given what the result was , and we felt like it was important for analysts and investors to understand what's informing our view toward the forward look of the high single digit outlook that we've continued to talk about consistently across the business .

Speaker #5: And it's having had this visibility over the last year, number of years, frankly, as we saw these projects moving throughout that multi-year funnel that we talk about.

Speaker #5: And that's what's informed our view.

Michael Fairbanks: Great. Thanks. I'll leave it there.

Operator 2: Your next question comes from the line of William Grippin with Barclays. Your line is open. Please go ahead.

Operator: Your next question comes from the line of William Grippin with Barclays. Your line is open. Please go ahead.

Speaker #11: Great, thanks. I'll leave it there.

Speaker #1: Your next question comes from the line of William Griffin with Barclays. Your line is open. Please go ahead.

William Grippin: Good morning. I appreciate the time here. Congrats on the UDlive acquisition. Just wanted to maybe focus in on that and your thoughts and strategy in the connected sewer line market. I guess, first, do you have a view on sort of how penetrated that market is today? Could you elaborate a little bit on maybe what are some of the driving forces underpinning adoption of those products? How do you think utilities are thinking about the value proposition or typical paybacks?

Speaker #12: Good morning . I appreciate the time here . And congrats on the UHD live acquisition . Just wanted to maybe focus in on on that and your thoughts and strategy in the connected sewer line market .

Speaker #12: I guess first , do you have a view on sort of how penetrated that market is today ? And , and could you elaborate a little bit on maybe what are some of the driving forces underpinning adoption of those products ?

Speaker #12: And , and how do you think utilities are thinking about , you know , the value proposition or typical paybacks ?

Kenneth Bockhorst: Yeah. What we really enjoyed about SmartCover, which we acquired just slightly more than a year ago, is that it's the leader in the US market, which is a fantastic smart water market, as you know. Adoption is very early, but the problems are very real. By adoption being early, meaning it's less than 0.5% of the manhole covers in the US have monitoring on it. The payback is really quite simple. If you've experienced any of the rainfalls in the Midwest this week, combined sewer overflows is a significant and real problem that nobody wants. Inflow and infiltration is something that's a real problem. Cleaning sewer optimization, the ability to save a lot of money. There's an almost immediate payback on cleaning optimization by having that in place. The dynamics are extremely real and every utility understands the value of implementing this technology.

Ken Bockhorst: Yeah. What we really enjoyed about SmartCover, which we acquired just slightly more than a year ago, is that it's the leader in the US market, which is a fantastic smart water market, as you know. Adoption is very early, but the problems are very real. By adoption being early, meaning it's less than 0.5% of the manhole covers in the US have monitoring on it. The payback is really quite simple. If you've experienced any of the rainfalls in the Midwest this week, combined sewer overflows is a significant and real problem that nobody wants. Inflow and infiltration is something that's a real problem. Cleaning sewer optimization, the ability to save a lot of money. There's an almost immediate payback on cleaning optimization by having that in place. The dynamics are extremely real and every utility understands the value of implementing this technology.

Speaker #3: Yeah . So , so what we really enjoyed about smartcover , which we acquired just slightly more than a year ago , is that it's the leader in the US market , which is a fantastic smart water market as , as you know , adoption is very early , but the problems are very real .

Speaker #3: So by adoption being early, meaning it's less than half a percent of the manhole covers in the U.S. have monitoring on it.

Speaker #3: The payback is really quite simple. And if you've experienced any of the rainfalls in the Midwest this week, combined sewer overflows is a significant and real problem that nobody wants.

Speaker #3: Inflow and infiltration is something that's a real problem . Cleaning , cleaning , sewer optimization . The ability to to save a lot of money .

Speaker #3: There's an almost immediate payback on cleaning optimization by having that in place . So , so the dynamics are extremely real . And every utility understands the value of implementing this technology .

Kenneth Bockhorst: In the UK, it's also very early in adoption. Bob and I like using baseball analogies, but being early in the early innings doesn't play in the UK. Let's just say they're very, very early in adoption as well. These two markets, though, in particular, are the absolute markets that we want to be in because they're already the largest, albeit early, and fastest-growing at the same time. Within both markets, and in particular in the UK, regulation is really driving this. It's not even just that a utility who already knows they should do it needs it. They're being mandated to do it. Then if you look inside the UK AMP8 spending cycle, there is massive amounts of investment allocated, actually demanded, to be spent in this area.

Ken Bockhorst: In the UK, it's also very early in adoption. Bob and I like using baseball analogies, but being early in the early innings doesn't play in the UK. Let's just say they're very, very early in adoption as well. These two markets, though, in particular, are the absolute markets that we want to be in because they're already the largest, albeit early, and fastest-growing at the same time. Within both markets, and in particular in the UK, regulation is really driving this. It's not even just that a utility who already knows they should do it needs it. They're being mandated to do it. Then if you look inside the UK AMP8 spending cycle, there is massive amounts of investment allocated, actually demanded, to be spent in this area.

Speaker #3: In the UK . It's also very early in adoption . Bob and I like using baseball analogies , but being early in the in the early innings doesn't play in the UK .

Speaker #3: So let's just say they're very , very early in adoption as well . These two markets though in particular are the absolute markets that we want to be in because they're already the largest , albeit early and fastest growing at the same time within both markets and in particular in the UK , you know , regulation is really driving this .

Speaker #3: So it's not even just that a utility, who already knows they should do it, needs it. They're being mandated to do it.

Speaker #3: And then, if you look inside the UK AMP8 spending cycle, there are massive amounts of investment allocated—actually demanded to be spent in this area.

Kenneth Bockhorst: Acquiring the two premier brands in the two already largest, fastest-growing regulated markets with an absolute understanding of why they should have it feels really good to us.

Ken Bockhorst: Acquiring the two premier brands in the two already largest, fastest-growing regulated markets with an absolute understanding of why they should have it feels really good to us.

Speaker #3: So, acquiring the two premier brands in the two already largest, fastest-growing regulated markets, with an absolute, you know, understanding of why they should have it, feels really good to us.

William Grippin: Thanks for that. Just another one here. I appreciate some of the incremental disclosure you've provided around some of the project wins. I'm just curious, once a project actually starts to ship, how predictable typically is the timing around that in terms of shipping the rest of those units in the deployment? Does it follow a fairly typical deployment timeline?

Speaker #12: Thanks for that . And just another one here on the you know , I appreciate the some of the incremental disclosure you've provided around some of the project wins .

Speaker #12: I'm just curious , once the project actually starts to ship , how predictable typically is the timing around that in terms of , you know , shipping the rest of those units in the deployment ?

Speaker #12: Does it follow a fairly typical deployment timeline?

Kenneth Bockhorst: Yeah. I'd refer you back to, I think it's slide four, where you can see even on these four projects, even within the four projects, there's variability throughout those three years. Oftentimes it'll come down to what available labor that they have, or do they have some other issue that maybe they find a priority for a few weeks. While it's generally over a three-year or four-year period, going to be pretty predictable over a three-month period, it's really not.

Ken Bockhorst: Yeah. I'd refer you back to, I think it's slide four, where you can see even on these four projects, even within the four projects, there's variability throughout those three years. Oftentimes it'll come down to what available labor that they have, or do they have some other issue that maybe they find a priority for a few weeks. While it's generally over a three-year or four-year period, going to be pretty predictable over a three-month period, it's really not.

Speaker #3: Yeah . So , so , so I'd refer you back to , I think it's slide four where you can see even on these for projects , even within the four projects , there's variability throughout those three years .

Speaker #3: So oftentimes it'll come down to, you know, what available labor they have, or do they have some other issue that maybe they find a priority for a few weeks.

Speaker #3: So while it's generally over a three year or four year period , it's going to be pretty predictable over a three month period .

Daniel Weltzien: That's an important reason why in PRASA, for example, we point out it's prone to hurricanes, and as a hurricane might come by, that might impact a quarter or two of shipments that we've had. You can't just draw a straight line on that project in particular, but it applies across the board.

Dan Weltzien: That's an important reason why in PRASA, for example, we point out it's prone to hurricanes, and as a hurricane might come by, that might impact a quarter or two of shipments that we've had. You can't just draw a straight line on that project in particular, but it applies across the board.

Speaker #3: It's really not .

Speaker #5: That's an important reason why in process , for example , we point out it's prone to hurricanes . And as a hurricane might come by , that might impact a quarter or two of shipments that we've had .

Speaker #5: So you can't just draw a straight line on that project in particular, but it applies across the board.

William Grippin: Understood. Appreciate the color. That's all for me.

Speaker #12: Understood. Appreciate the color. That's all for me.

Operator 2: Your next question comes from the line of Scott Graham with Seaport. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Scott Graham with Seaport. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of Scott Graham with Seaport. Your line is open. Please go ahead.

Scott Graham: Hey, good morning. Thanks for taking the question, and thanks for all the additional detail. I have one and then a follow-up. The incremental margin for the year, I guess we can see what the decremental was, of course, for Q1. I would assume something similar in Q2. Does the H2 with implied top-line growth kind of get us back to that 25-30% level that we've seen from you guys for incremental margin? Or does PRASA hurt that?

Speaker #13: Hey. Good morning. Thanks for taking the question, and thanks for all the additional detail. I have one, and then a follow up.

Speaker #13: So the incremental margin for the year , you know , I guess we can see what the Decremental was , of course , for the first quarter , I would assume something similar in the second quarter .

Speaker #13: But does the second half, with implied top-line growth, kind of get us back to that 25%–30% level that we've seen from you guys for incremental margin?

Daniel Weltzien: Yeah. As we've talked about and we've described, let me answer the second part of your question first on PRASA. We've described, because it's the largest project we've ever done and a competitively bid, very attractive opportunity, the gross margins on that, of course, are not quite at the line average level as other projects that we've been awarded. However, the SEA leverage on a project like that is still very interesting to us and gets us back to an OP leverage that's in line with the rest of the business.

Dan Weltzien: Yeah. As we've talked about and we've described, let me answer the second part of your question first on PRASA. We've described, because it's the largest project we've ever done and a competitively bid, very attractive opportunity, the gross margins on that, of course, are not quite at the line average level as other projects that we've been awarded. However, the SEA leverage on a project like that is still very interesting to us and gets us back to an OP leverage that's in line with the rest of the business.

Speaker #13: Or does Proscar hurt that?

Speaker #5: Yeah . As we've talked about , and we've described let me answer the second part of your question . First on Processa . We've described because this is , you know , one of the it's the largest project we've ever done in a competitively bid , you know , very attractive opportunity .

Speaker #5: The gross margins on that, of course, are not quite at the line average level as other projects that we've been awarded.

Speaker #5: However, the SCA leverage on a project like that is still very interesting to us and gets us back to an op leverage that's in line with the rest of the business.

Daniel Weltzien: I would say generally, as we think about the business and getting back to this flattish top-line result, we don't have any different view in terms of the gross margins like I talked about, and we're managing our SEA such that it should be flattish to where we were a year ago as well, which results in incrementals that kind of look the way that it does this year. That's more information than we've given historically. We don't give guidance, but I just wanted to sort of connect some of those dots that we've tried to paint throughout the script.

Dan Weltzien: I would say generally, as we think about the business and getting back to this flattish top-line result, we don't have any different view in terms of the gross margins like I talked about, and we're managing our SEA such that it should be flattish to where we were a year ago as well, which results in incrementals that kind of look the way that it does this year. That's more information than we've given historically. We don't give guidance, but I just wanted to sort of connect some of those dots that we've tried to paint throughout the script.

Speaker #5: And I would say generally , as we think about the business and getting back to this flattish top line result , we don't have any different view in terms of of the gross margins .

Speaker #5: Like I talked about , and we're managing our managing our SCA such that it should , it should be flattish to where we were a year ago as well , which results in incrementals that kind of look the way that it does this year .

Speaker #5: So that's more information than we've given historically . We don't give guidance , but I just wanted to sort of connect some of those dots that we've tried to , to paint throughout the script .

Scott Graham: It is indeed. When you say SEA flattish, you mean in dollars?

Speaker #13: It is indeed. When you say SCA 'flattish,' you mean in dollars?

Daniel Weltzien: If you look over the last number of quarters, our SEA dollars have been relatively flat, and that expectation isn't different moving forward.

Dan Weltzien: If you look over the last number of quarters, our SEA dollars have been relatively flat, and that expectation isn't different moving forward.

Speaker #5: If you look over the last number of quarters, our SCA dollars have been relatively flat, and that expectation isn't different.

Kenneth Bockhorst: Well, keeping in mind, we're closing the UDlive acquisition in April, so there's more SEA work to be done there. If you're asking on organic basis, that answer was more for that.

Ken Bockhorst: Well, keeping in mind, we're closing the UDlive acquisition in April, so there's more SEA work to be done there. If you're asking on organic basis, that answer was more for that.

Speaker #5: Moving forward .

Speaker #3: Well , and keeping in mind , we're closing the UHD live acquisition in April . So there's there's more SCA work to be done there .

Speaker #3: So if you're talking, if you're asking on an organic basis, that answer was more for that.

Scott Graham: Got it. Thank you. My quick follow-up is, so you've talked about ad nauseam about high single is the way to look at you guys long term. With 2026 rolling out the way it does and you're indicating that you're going to exit the year with really a lot more momentum Q4 this year versus Q4 last year, can we get back to that high single next year or perhaps higher?

Speaker #13: Got it . Thank you . And then my quick follow up is so , you know , we've you've talked about ad nauseam about , you know , high single is the way to look at you guys long term , you know , with 2026 rolling out the way it does in your indicating that you're going to exit the year with really a lot more momentum .

Speaker #13: Fourth quarter this year versus fourth quarter last year. Can we get back to that high single next year, or perhaps higher?

Kenneth Bockhorst: Well, I will talk to you about sentiment and things that we think we know, stopping short of telling you a number. I think as we progress through the year, as these projects head into deployment, and again, while they may be uneven, they will be en route. We certainly will feel better coming into 2027 than we did coming into 2026. Our views on the long-term health of the market do remain unchanged, Scott. I'm not going to give you a number for 2027, but I do expect us to be back into a momentum period coming out of this.

Ken Bockhorst: Well, I will talk to you about sentiment and things that we think we know, stopping short of telling you a number. I think as we progress through the year, as these projects head into deployment, and again, while they may be uneven, they will be en route. We certainly will feel better coming into 2027 than we did coming into 2026. Our views on the long-term health of the market do remain unchanged, Scott. I'm not going to give you a number for 2027, but I do expect us to be back into a momentum period coming out of this.

Speaker #3: Well, so, so I will talk to you about sentiment and things that we think we know, while stopping short of telling you a number.

Speaker #3: But you know , I think as we progress through the year as these projects head into deployment and again , while they may be uneven , they will be in route .

Speaker #3: So we , we certainly will feel better coming into 27 than we did coming into 26 . But our views on the long term health of the market do remain unchanged .

Speaker #3: Scott . So I , you know , I'm not going to give you a number for 27 , but I do expect us to be back into a momentum period coming out of this

Scott Graham: Appreciate that. Thank you.

Kenneth Bockhorst: Sure thing.

Ken Bockhorst: Sure thing.

Speaker #13: Appreciate that. Thank you.

Operator 2: Just as a reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to Barbara for closing remarks. Correction. Apologies. We have one more question from Bobby Zulfar with Raymond James. Your line is open. Please go ahead.

Operator: Just as a reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to Barbara for closing remarks. Correction. Apologies. We have one more question from Bobby Zulfar with Raymond James. Your line is open. Please go ahead.

Speaker #3: Sure thing .

Speaker #1: Just as a reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time.

Speaker #1: We have reached the end of the Q&A session. I will now turn the call back to Barbara for closing remarks. Correction—apologies.

Speaker #1: We have one more question from Bobby Solberg with Raymond James. Your line is open. Please go ahead.

Bobby Zulfar: Yeah, thanks for letting me jump back in. I just had a question on price and maybe related also price cost. In tracking some of the larger competitively bid projects, specifically like Charlotte, Glendale, it seems like some of that pricing is below maybe what it was in 2022 and 2023. How does that look, I guess, throughout your business? Can I extrapolate that trend to the rest of the business?

Bobby Zolper: Yeah, thanks for letting me jump back in. I just had a question on price and maybe related also price cost. In tracking some of the larger competitively bid projects, specifically like Charlotte, Glendale, it seems like some of that pricing is below maybe what it was in 2022 and 2023. How does that look, I guess, throughout your business? Can I extrapolate that trend to the rest of the business?

Speaker #9: Yeah. Thanks for letting me jump back in. I just had a question on price and maybe related also price, cost in tracking some of the larger, like competitively bid projects, specifically like Charlotte, Glendale.

Speaker #9: It seems like some of that pricing is below maybe what it was in 2022 and 2023. How does that look? I guess, throughout your business, can I extrapolate that trend to the rest of the business?

Kenneth Bockhorst: Well, first of all, Bobby, we're not going to comment on price, project to project, because there's so many different variables. Due to respecting our customers, we won't talk about price, from project to project, either.

Ken Bockhorst: Well, first of all, Bobby, we're not going to comment on price, project to project, because there's so many different variables. Due to respecting our customers, we won't talk about price, from project to project, either.

Speaker #3: Well, first of all, Bobby, we're not going to comment on price project to project because there's so many different variables.

Speaker #3: And, due to respecting our customers, we won't talk about price from project to project either.

Bobby Zulfar: All right. Thank you. I appreciate it.

Bobby Zolper: All right. Thank you. I appreciate it.

Kenneth Bockhorst: You're welcome.

Ken Bockhorst: You're welcome.

Speaker #9: All right. Thank you. I appreciate it.

Speaker #3: You're welcome

Operator 2: There are no further questions at this time. We have reached the end of the Q&A session. Now I will turn the call back to Barbara for closing remarks.

Operator: There are no further questions at this time. We have reached the end of the Q&A session. Now I will turn the call back to Barbara for closing remarks.

Speaker #1: There are no further questions at this time. We have reached the end of the Q&A session. So now I will turn the call back to Barbara for closing remarks.

Barbara Noverini: Thank you, operator. As a reminder, Badger Meter's inaugural Investor Day will take place on 21 May in New York City. Virtual participants may access the event through a live webcast accessible on the Badger Meter investor relations website. During the event, we will provide greater color and tangible examples of the evolution of our BlueEdge portfolio, along with a discussion of the key drivers enabling growth of our comprehensive suite of smart water management solutions. In addition, Badger Meter's Q2 2026 earnings release is tentatively scheduled for 22 July 2026. Thanks for your interest in Badger Meter and have a great day.

Speaker #2: Thank you, operator. As a reminder, Badger Meter Inc. inaugural Investor Day will take place on May 21st in New York City.

Speaker #2: Virtual participants may access the event through a live webcast accessible on the Badger Meter Inc. Investor Relations website. During the event, we will provide greater color and tangible examples of the evolution of our Blue Edge portfolio, along with a discussion of the key drivers enabling growth of our comprehensive suite of smart water management solutions.

Speaker #2: In addition, Badger Meter Inc's second quarter 2020 earnings release is tentatively scheduled for July 22, 2026. Thanks for your interest in Badger Meter Inc.

Operator 2: This concludes today's call. Thank you for attending and you may now disconnect.

Operator: This concludes today's call. Thank you for attending and you may now disconnect.

Speaker #2: Have a great day

Speaker #1: This concludes today's call. Thank you for attending, and you may now disconnect.

Operator 1: This event has now concluded. Thank you for joining BMI Q1 2026 Earnings Call. The line will disconnect automatically.

Operator: This event has now concluded. Thank you for joining BMI Q1 2026 Earnings Call. The line will disconnect automatically.

Q1 2026 Badger Meter Inc Earnings Call

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