Badger Meter (BMI) stock is soaring 5.27% in pre-market trading on Tuesday following the company's impressive third-quarter results and a significant dividend increase. The fluid measurement and control products manufacturer delivered strong performance across key financial metrics, surpassing analyst expectations.

For the third quarter of 2025, Badger Meter reported total sales of $235.7 million, marking a 13% increase compared to the same period last year. This figure comfortably beat the analyst consensus estimate of $231.88 million. The company's earnings per share (EPS) came in at $1.19, surpassing the expected $1.14. Notably, Badger Meter's net income for the quarter reached $35.077 million.

The strong results were driven by robust demand for utility water products, including the company's BEACON SaaS offering and ultrasonic water meters. Additionally, the successful integration of the SmartCover acquisition, completed in January 2025, contributed to the sales growth. In a move that further bolstered investor confidence, Badger Meter announced an 18% increase in its annual dividend rate to $1.60 per share, marking the 33rd consecutive year of dividend growth. The company's positive outlook, including expectations of high-single-digit average revenue growth over the next five years and an increased normalized gross margin range, is likely contributing to the stock's upward movement.