Badger Meter just locked in the biggest contract in its history, a multi-year deal to supply cellular-enabled water meters for a sweeping overhaul of Puerto Rico's water network. The project will replace more than a million service connections and is expected to be largely supplied out of the company's Racine manufacturing plant, putting the city at the center of one of the world's largest advanced metering deployments and setting up a production ramp later in 2026.
What the contract covers
In a press release from Badger Meter, via Business Wire, the company said the Puerto Rico Aqueduct and Sewer Authority chose its cellular AMI solution, including E-Series ultrasonic meters, ORION® cellular endpoints and BEACON® SaaS, for approximately 1.6 million service connections. The company described its role as supply-only, noting it will not act as prime contractor or handle field installations.
Biggest win in company history
The award represents the largest contract Badger Meter has ever landed, as reported by the Milwaukee Business Journal, with production slated to begin later in 2026 at the Racine facility. For Racine, which already hosts several Badger operations, the program could translate into a sustained manufacturing run once shipments start next year.
Racine plant to handle production
Badger said it will rely on its Racine, Wisconsin, manufacturing facility to build the meters and noted it has already moved SmartCover production to that site. They successfully transitioned SmartCover’s manufacturing operations to Racine facility. Business Wire reported that the Puerto Rico project will roll out over multiple years.
Timing and risks
Company executives told investors that product shipments are expected to begin in 2026, with an initial ramp earlier in the year and more meaningful revenue anticipated in the second half. They also cautioned that large AMI deployments are often influenced by installation resources and utility budget cycles, according to an earnings call transcript. AlphaStreet reported that management highlighted the typical multi-year pacing and the variables that can affect timing.
What to watch next
Key questions now are whether installation contractors and utility partners can keep the rollout on schedule and how supply-chain pressures might affect margins, since Badger has not publicly detailed the program's near-term revenue impact. MarketBeat notes that management folded the Puerto Rico Aqueduct and Sewer Authority award into its multi-year growth outlook but declined to pin down short-term revenue expectations from the project.
