Badger Meter (BMI) stock is soaring 5.27% in Tuesday's trading session following the release of its impressive third-quarter earnings report. The water metering and flow measurement solutions provider reported better-than-expected results and raised its dividend, boosting investor confidence.

For the third quarter of 2025, Badger Meter reported earnings per share (EPS) of $1.19, surpassing the analyst consensus estimate of $1.14. The company's total sales reached $235.7 million, marking a 13% increase compared to the same period last year and beating the analyst forecast of $231.88 million. Net income for the quarter stood at $35.077 million.

In addition to the strong financial performance, 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 robust results were driven by strong demand for utility water products, including BEACON SaaS and ultrasonic water meters. The successful integration of SmartCover, acquired in January 2025, also contributed to the sales growth. Looking ahead, Badger Meter expects high-single-digit average revenue growth over the next five years and has raised its normalized gross margin range to 39-42% from 38-40%, further fueling investor optimism.