What happened
According to an SEC filing dated Nov. 26, 2025, XXEC, Inc. sold its entire holding in Badger Meter (BMI 3.12%) during the third quarter. The fund's position decreased by 17,748 shares, resulting in an estimated transaction value of $4.35 million based on quarterly average pricing. The sale reduced the fund's reportable stake in the company to zero shares.
What else to know
XXEC, Inc. fully liquidated its position in Badger Meter, which previously represented 3.5% of fund AUM in the prior quarter.
Top holdings after the filing:
- Mastercard: $11.35 million (10.4% of AUM)
- Microsoft: $10.03 million (9.2% of AUM)
- Intuit: $9.16 million (8.4% of AUM)
- Teradyne: $8.70 million (7.9% of AUM)
- Gentex: $8.50 million (7.8% of AUM)
As of Nov. 25, 2025, shares of Badger Meter were priced at $182.60, down 16.5% over the past year, underperforming the S&P 500 by 30.1 percentage points
Company overview
| Metric | Value |
|---|---|
| Price (as of market close Nov. 25, 2025) | $182.60 |
| Market capitalization | $5.3 billion |
| Revenue (TTM) | $901.11 million |
| Net income (TTM) | $138.8 million |
Company snapshot
Badger Meter provides flow measurement, quality, control, and communication solutions, including mechanical and static water meters, radio and software technologies, and flow instrumentation products.
The company generates revenue primarily through the sale of proprietary hardware, software, and cloud-based analytics for water utilities and industrial customers, with recurring service and technology upgrade opportunities.
It serves municipal water utilities, industrial markets, and original equipment manufacturers in the United States and internationally.
Badger Meter is a leading provider of flow measurement and control technologies with a global customer base. The company leverages its proprietary hardware and cloud-based analytics to deliver critical infrastructure solutions, supporting water utilities and industrial clients in managing resources efficiently. Its long-standing industry presence and focus on technology innovation underpin its competitive position in the smart metering and flow instrumentation market.
Foolish take
Badger Meter stock crashed in July after it disappointed investors with its second-quarter results. Shares still haven't recovered even though third-quarter results were relatively strong.
Badger Meter reported 13% revenue growth in Q3. It also increased its annual dividend rate by 18%. In that report, CEO Kenneth C. Bockhorst stated, "As we manage through ever-evolving macroeconomic, trade and policy headwinds in the near-term, it remains clear that demand is strong for our industry-leading cellular AMI and BlueEdge™ smart water management solutions."
Those headwinds may be why XXEC decided to exit its position. The firm had already reduced its exposure in Q2, so it may not have been a core conviction holding for the management team.
Successful investing sometimes requires portfolio adjustments, focusing on holdings that one feels has the best chance of future gains. That may be what XXEC decided to do with Badger Meter stock.
Glossary
13F assets under management (AUM): The total value of securities reported by an institutional investment manager on SEC Form 13F.
Liquidated: Sold off an entire investment position, reducing the holding to zero shares.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Proprietary hardware: Equipment designed and owned by a company, not available for general use by competitors.
Cloud-based analytics: Data analysis services delivered over the internet, allowing remote access and processing.
Flow instrumentation: Devices used to measure and control the movement and quantity of fluids.
Municipal water utilities: Local government organizations that provide water services to communities.
Original equipment manufacturers (OEMs): Companies that produce parts or equipment used in another company's end products.
Smart metering: Technology enabling automated, remote measurement and monitoring of utility usage, such as water or electricity.
TTM: The 12-month period ending with the most recent quarterly report.
