Sandhill Investment Management disclosed in its Q2 2026 investor letter that it initiated a new position in Badger Meter (BMI), a smart water metering solutions company.
Sandhill Investment Management stated that Badger Meter (BMI) holds a leading position in smart water meters and cellular advanced metering infrastructure technology, operating in an oligopoly market with high switching costs. The firm believes the recent stock pullback, following a temporary dip in revenue growth, provided an attractive entry point, and sees a durable growth runway driven by a multi-decade replacement cycle for aging water infrastructure and increasing technology adoption. Badger Meter (BMI) shares closed at $137.15 on August 26, reflecting a market capitalization of $3.98 billion, with a one-month return of 5.18% but a 26.46% loss over the past 52 weeks.
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