Technological Advancements Fueling Badger Meter’s (BMI) Long-Term Growth Potential

In Sandhill Investment Management's Q2 2026 investor letter, the firm chose to add Badger Meter, Inc. (NYSE:BMI) to its portfolio. This US-based company specializing in flow measurement, quality, control, and communication solutions presents itself as a strong play in the water technology sector. The company's primary business lies in smart water meters and cellular advanced metering infrastructure technology, all of which appeal to the oligopoly market of municipal utility customers who value reliability over price.

Despite a recent drop in stock price after a temporary dip in revenue growth, the company's long-term growth prospects are backed by the multidecade replacement cycle for aging water infrastructure and increasing technology adoption.