Itron Announces Second Quarter 2025 Financial Results
LIBERTY LAKE, Wash., July 31, 2025 (GLOBE NEWSWIRE) -- Itron, Inc. (NASDAQ:ITRI), which is innovating the way utilities and cities manage energy and water, announced today financial results for its second quarter ended June 30, 2025. Key results for the quarter include (compared with the second quarter of 2024):
Revenue of $607 million;
Gross profit of $224 million, increased 6%;
GAAP net income attributable to Itron, Inc. of $68 million, increased $17 million;
GAAP diluted earnings per share of $1.47, increased $0.37 per share;
Non-GAAP diluted EPS of $1.62, increased $0.41 per share;
Adjusted EBITDA of $90 million, increased 16%; and
Free cash flow of $91 million, increased $46 million.
"Itron delivered solid second quarter results driving quarterly record levels of margin, profitability, and cash flow," said Tom Deitrich, Itron's president and CEO. "The market environment remains dynamic with long-term growth, against a backdrop of near-term macroeconomic uncertainty and trade policy volatility. We remain focused on supporting our customers as they adapt to balance many competing priorities and weigh complex decisions."
Summary of Second Quarter Consolidated Financial Results(All comparisons made are against the prior year period unless otherwise noted)
RevenueTotal second quarter revenue of $607 million compared to $609 million in the prior year. This comparison reflects catch-up of previously constrained revenue that occurred during Q2'24.
Device Solutions revenue decreased 5%, or 8% in constant currency, due to lower legacy electricity product sales related to portfolio optimization, partially offset by increased water sales.
Networked Solutions revenue decreased 1% when compared to the second quarter of 2024 due to no constrained revenue catch-up as well as the timing of shipments and project deployments.
Outcomes revenue increased 9%, due to increased recurring revenue and software licenses.
Gross MarginItron's second quarter gross margin of 36.9% increased 230 basis points from the prior year due to product and customer mix.
Operating Expenses and Operating IncomeGAAP operating expenses of $147 million increased $1 million from the prior year. Non-GAAP operating expenses of $141 million were unchanged compared to the prior year.
GAAP operating income of $76 million was $12 million higher than the prior year and non-GAAP operating income of $82 million was $13 million higher than the prior year. Both increases were due to higher gross profit.
Net Income and Earnings per ShareNet income attributable to Itron, Inc. for the quarter was $68 million, or $1.47 per diluted share, compared with net income attributable to Itron, Inc. of $51 million, or $1.10 per diluted share in 2024. The increase was driven by higher GAAP operating income and higher interest income.
Non-GAAP net income attributable to Itron, Inc., which excludes the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, (gain) loss on sale of business, acquisition and integration related expenses, and the tax effect of excluding these expenses, was $75 million, or $1.62 per diluted share, compared with $56 million, or $1.21 per diluted share, in 2024. The increase was due to higher non-GAAP operating income and higher interest income.
Cash FlowNet cash provided by operating activities was $97 million in the second quarter compared with $52 million in the prior year. Free cash flow was $91 million in the second quarter compared with $45 million in the prior year. The increase in free cash flow was primarily due to higher earnings, higher interest income, and decreased tax payments.
Other Measures
Total backlog at quarter end was $4.5 billion compared with $4.1 billion in the prior year. Bookings in the quarter totaled $454 million.
Q3 2025 Outlook and Full Year 2025 Outlook Update
Outlook for the third quarter of 2025 is as follows:
Revenue between $570 and $585 million
Non-GAAP diluted EPS between $1.45 and $1.55
Itron's outlook for the full year 2025 has been updated as follows:
Revenue between $2.35 to $2.4 billion
Non-GAAP diluted EPS between $6.00 to $6.20
Earnings Conference CallItron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on July 31, 2025. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the company's website at https://investors.itron.com/events-presentations. Participants should access the webcast 10 minutes prior to the start of the call. A webcast replay of the conference call will be available through Aug. 7, 2025 and may be accessed on the company's website at https://investors.itron.com/events-presentations.
About ItronItron is transforming how the world manages energy, water and city services. Our trusted intelligent infrastructure solutions help utilities and cities improve efficiency, build resilience and deliver safe, reliable and affordable service. With edge intelligence, we connect people, data insights and devices so communities can better manage the essential resources they rely on to live and thrive. Join us as we create a more resourceful world: www.itron.com
Itron® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.
Cautionary Note Regarding Forward Looking StatementsThis release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this release. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek", "project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plans, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws, regulations, tariffs, sanctions, trade policies and retaliatory responses, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including without limitation those resulting from extraordinary events or circumstances and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our Annual Report on Form 10-K for the year ended Dec 31, 2024 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update or revise any information in this press release.
Non-GAAP Financial InformationTo supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, free cash flow, and constant currency. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. When providing future outlooks and/or earnings guidance, a reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring related expenses and their related tax effects without unreasonable effort. These costs are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.
For additional information, contact:
Itron, Inc.
Paul VincentVice President, Investor Relations(512) 560-1172
David MeansDirector, Investor Relations(737)
Itron, Inc.
LinkedIn: https://www.linkedin.com/company/itroninc
X: https://twitter.com/ItronInc
Newsroom: https://itron.com/newsroom
Blog: https://itron.com/blog
ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months EndedJune 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Revenues
Product revenues
$
517,184
$
532,907
$
1,040,325
$
1,060,729
Service revenues
89,577
76,162
173,587
151,782
Total revenues
606,761
609,069
1,213,912
1,212,511
Cost of revenues
Product cost of revenues
337,394
356,747
683,836
713,454
Service cost of revenues
45,749
41,862
89,239
83,218
Total cost of revenues
383,143
398,609
773,075
796,672
Gross profit
223,618
210,460
440,837
415,839
Operating expenses
Sales, general and administrative
87,615
88,413
174,526
174,384
Research and development
53,810
53,053
103,900
105,454
Amortization of intangible assets
4,543
4,511
9,022
8,497
Restructuring
1,237
(99
)
684
99
(Gain) loss on sale of business
—
(65
)
79
(42
)
Total operating expenses
147,205
145,813
288,211
288,392
Operating income
76,413
64,647
152,626
127,447
Other income (expense)
Interest income
12,303
5,128
24,013
8,974
Interest expense
(5,648
)
(2,290
)
(11,241
)
(4,183
)
Other income (expense), net
414
(445
)
363
18
Total other income (expense)
7,069
2,393
13,135
4,809
Income before income taxes
83,482
67,040
165,761
132,256
Income tax provision
(14,730
)
(15,180
)
(31,659
)
(28,609
)
Net income
68,752
51,860
134,102
103,647
Net income attributable to noncontrolling interests
412
542
288
608
Net income attributable to Itron, Inc.
$
68,340
$
51,318
$
133,814
$
103,039
Net income per common share - Basic
$
1.50
$
1.12
$
2.94
$
2.25
Net income per common share - Diluted
$
1.47
$
1.10
$
2.89
$
2.22
Weighted average common shares outstanding - Basic
45,633
45,745
45,486
45,698
Weighted average common shares outstanding - Diluted
46,380
46,526
46,276
46,441
ITRON, INC.
SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months EndedJune 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Product revenues
Device Solutions
$
111,939
$
117,929
$
237,326
$
243,837
Networked Solutions
379,481
387,351
754,003
768,656
Outcomes
25,764
27,627
48,996
48,236
Total Company
$
517,184
$
532,907
$
1,040,325
