Core Insights - Itron, Inc. has announced that Connected Lighting Solutions (CLS) has joined its Engage Sales Channel Partner Program in Australia, enhancing the deployment of smart lighting technologies [1][5] - The partnership aims to improve public services, reduce emissions, and enhance livability in urban areas by leveraging CLS's local expertise and Itron's advanced smart lighting solutions [2][4] Company Collaboration - CLS will provide end-to-end support for the deployment of Itron's smart lighting technology, including project design, deployment, and ongoing maintenance [4] - The collaboration will facilitate the integration of Itron's CityEdge platform, which offers capabilities such as remote streetlight monitoring and real-time outage detection [4][6] Market Impact - The partnership is expected to strengthen Itron's presence in Australia, making it easier for customers to access smart lighting solutions [5] - By combining Itron's industrial IoT platform with CLS's local knowledge, the collaboration aims to enable more efficient and reliable smart lighting deployments [6]

Core Insights - Itron, Inc. (ITRI) is currently focusing on improving margins while investors are looking for sales growth in the industrial IoT and edge intelligence sectors [1] Group 1: Company Overview - Itron, Inc. is positioned well in the industrial IoT and edge intelligence service market [1] - The company has been delivering on margins, indicating operational efficiency [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" provides insights on major corporate events such as IPOs, mergers & acquisitions, and earnings reports, aiming to identify the best investment opportunities [1]

Core Insights - Itron, Inc. is collaborating with Northumbrian Water Limited to modernize its water distribution system by deploying 330,000 Itron Aquadis+ volumetric water meters equipped with Cyble 5 communication modules by 2029 [1][2][3] - The deployment is part of Northumbrian Water's strategy to meet strict water leak reduction goals set by Ofwat, the water sector regulator in England and Wales [2][5] - The initiative aims to enhance customer service, ensure reliable water supply, and promote water conservation through real-time data collection and educational campaigns [3][4] Company and Industry Overview - Itron is recognized as a global leader in energy, water, smart city, IIoT, and intelligent infrastructure services, focusing on innovative systems and resource conservation [6] - The collaboration with Northumbrian Water is part of a broader trend in the U.K. water sector, where utilities are encouraged to reduce leaks by 50% from a 2017-18 baseline by 2050 [5] - The Cyble 5 solution enables utilities to transform mechanical meters into communicating devices, improving operational efficiency and billing accuracy [5][4]

Core Insights - Itron, Inc. has signed a definitive agreement to acquire Locusview, Ltd. for $525 million, which will be funded through cash on hand, with the transaction expected to close in January 2026 [1][2]. Group 1: Acquisition Details - The acquisition of Locusview aims to enhance Itron's Resiliency Solutions offerings, providing a scalable SaaS-based platform for digital construction management [2]. - Locusview's platform is designed to improve productivity and management of construction projects for critical infrastructure providers, addressing the need for increased grid build-out and operational efficiency [2]. Group 2: Strategic Vision - Itron's CEO emphasized the potential of the combined capabilities to empower utilities to plan smarter, build faster, and operate safer, leveraging real-time data for decision-making [2]. - Locusview's co-founder highlighted the acquisition as a pivotal moment for scaling operations and supporting the critical needs of infrastructure providers globally, aligning with Itron's vision for a connected and sustainable network [2][5]. Group 3: Company Background - Itron focuses on transforming the management of energy, water, and city services through intelligent infrastructure solutions that enhance efficiency and resilience [3]. - Locusview's mission is to empower infrastructure providers by optimizing capital investments and automating data capture in real-time, bridging the gap between design and operational systems [5].

Core Insights - Oppenheimer Asset Management Inc. acquired 5,260 shares of Itron, Inc. valued at approximately $692,000 in Q2 [1] - Several large investors have increased their stakes in Itron, with institutional ownership at 96.19% [2] - Analyst ratings for Itron show a mix of "buy," "neutral," and "hold" ratings, with an average price target of $139.00 [3] Investment Activity - Wayfinding Financial LLC acquired a new position worth about $45,000 in Q1 [2] - REAP Financial Group LLC raised its position by 168.4% in Q2, now owning 424 shares valued at $56,000 [2] - Quarry LP increased its stake by 155.6% in Q1, now holding 910 shares valued at $95,000 [2] - Farther Finance Advisors LLC grew its stake by 52.5% in Q2, owning 1,240 shares worth $163,000 [2] - ST Germain D J Co. Inc. acquired a new stake worth $170,000 in Q2 [2] Analyst Ratings - Roth Capital raised its price target from $130.00 to $150.00 with a "buy" rating [3] - Robert W. Baird maintained a "neutral" rating with a reduced price target of $118.00 [3] - Stephens set a price objective of $130.00 with an "equal weight" rating [3] - Weiss Ratings restated a "buy (b)" rating [3] - Oppenheimer set a price objective of $145.00 with an "outperform" rating [3] Stock Performance - Itron's stock opened at $100.33, with a market cap of $4.59 billion [4] - The company has a P/E ratio of 17.15 and a price-to-earnings-growth ratio of 0.76 [4] - Itron's 52-week low is $90.11 and the high is $142.00 [4] Financial Results - Itron reported $1.54 EPS for the quarter, beating estimates of $1.48 by $0.06 [5] - Revenue for the quarter was $581.63 million, slightly above estimates of $578.49 million, but down 5.5% year-over-year [5] - The company has set FY 2025 guidance at 6.840-6.940 EPS and Q4 2025 guidance at 2.150-2.250 EPS [5] Insider Activity - SVP Justin K. Patrick sold 388 shares at an average price of $125.31, totaling $48,620.28 [6] - SVP John F. Marcolini sold 565 shares at the same average price, totaling $70,800.15 [6] - Insiders sold a total of 3,037 shares valued at $380,566 in the last 90 days [6]

Core Insights - Itron, Inc. (ITRI) reported non-GAAP EPS of $1.54 for Q3 2025, exceeding the Zacks Consensus Estimate by 4.1%, but down 16.3% year-over-year [1][9] - Revenue for the quarter was $581.6 million, a decline from $615.5 million in the prior-year quarter, attributed to portfolio optimization and project timing [2][9] - The company has raised its non-GAAP EPS outlook for 2025 to a range of $6.84 to $6.94, up from previous estimates of $6.00 to $6.20 [5] Financial Performance - Revenue decreased by 5.5% year-over-year, with product revenues at $494.3 million (85% of total revenues) down 8.2%, while service revenues increased by 13.1% to $87.3 million (15%) [5][9] - Gross margin improved to 37.7%, a 360-basis point increase year-over-year, driven by a favorable product and customer mix [11] - Non-GAAP operating income reached a record high of $89 million, marking a 12.7% year-over-year increase [11] Backlog and Bookings - Itron ended the quarter with a record backlog of $4.3 billion, up from $4 billion a year ago, with third-quarter bookings of $380 million [6][9] Segment Performance - Device Solutions segment revenue fell 16% to $103.1 million, impacted by declines in legacy EMEA electricity products and lower water volumes in North America [7] - Networked Solutions revenue dipped 6% to $365.4 million, primarily due to project implementation timing [10] - Outcomes segment revenue rose 11% to $25.8 million, driven by growth in recurring revenue [10] Outlook - For Q4 2025, Itron expects revenues between $555 million and $565 million, representing a 9% decline year-over-year at the midpoint, with non-GAAP EPS anticipated in the range of $2.15 to $2.25 [14] Balance Sheet and Cash Flow - As of September 30, 2025, cash and cash equivalents totaled $1.331 billion, with net long-term debt at $787.9 million [13] - The company generated strong cash flow, with net cash from operations totaling $118 million and free cash flow of $113 million [13]

Financial Performance - Total revenues for Q3 2025 were $581.6 million, a decrease of 5.5% compared to $615.5 million in Q3 2024[9] - Product revenues decreased to $494.3 million in Q3 2025 from $538.2 million in Q3 2024, representing a decline of 8.2%[9] - Service revenues increased by 13.1% to $87.3 million in Q3 2025, up from $77.2 million in Q3 2024[9] - Gross profit for Q3 2025 was $219.5 million, an increase of 4.5% from $209.6 million in Q3 2024[9] - Operating income rose to $81.8 million in Q3 2025, compared to $73.9 million in Q3 2024, reflecting a growth of 10.5%[9] - Net income attributable to Itron, Inc. for Q3 2025 was $65.6 million, down from $78.0 million in Q3 2024, a decrease of 16.0%[9] - Comprehensive income attributable to Itron, Inc. for Q3 2025 was $62.6 million, down from $97.8 million in Q3 2024[10] - Net income for the nine months ended September 30, 2025, was $200.3 million, an increase from $182.6 million in the same period of 2024, representing a growth of 9.6%[19] - Non-GAAP net income attributable to Itron, Inc. was $71.8 million, down from $84.3 million in 2024[148] - Adjusted EBITDA for the three months ended September 30, 2025, was $97.2 million, compared to $88.6 million in 2024[148] Cash and Liquidity - Cash and cash equivalents increased to $1.3 billion as of September 30, 2025, compared to $1.1 billion at the end of 2024[15] - Cash and cash equivalents at the end of the period were $1.33 billion, up from $982.5 million at the end of September 2024, indicating a year-over-year increase of 35.5%[19] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $286.6 million, compared to $158.3 million in 2024, marking an increase of 81%[19] - Free cash flow for the nine months ended September 30, 2025 was $271.6 million, up from $137.4 million in 2024, driven by higher operating cash flow and reduced capital expenditures[205] - Principal sources of liquidity include cash flows from operations, borrowings, and the sale of common stock[207] - Working capital remains in a net favorable position, indicating strong liquidity[207] - The company expects existing cash, cash flows from operations, and access to capital markets to be sufficient for at least the next 12 months[207] Assets and Liabilities - Total assets grew to $3.71 billion as of September 30, 2025, up from $3.41 billion at the end of 2024[15] - Total liabilities remained relatively stable at $2.00 billion as of September 30, 2025, compared to $2.00 billion at the end of 2024[15] - Total equity as of September 30, 2025, was $1.71 billion, an increase from $1.37 billion at the end of September 2024, representing a growth of 24.5%[19] - Total debt remained stable at $1.265 billion as of September 30, 2025, unchanged from December 31, 2024[45] Segment Performance - Device Solutions segment generated product revenues of $103.1 million and service revenues of $0.5 million, totaling $103.6 million for the three months ended September 30, 2025[119] - Networked Solutions segment reported product revenues of $365.4 million and service revenues of $28.3 million, leading to total revenues of $393.7 million for the same period[119] - Outcomes segment achieved product revenues of $25.8 million and service revenues of $58.5 million, resulting in total revenues of $84.3 million for the three months ended September 30, 2025[119] Expenses and Costs - Total operating expenses for Q3 2025 were $137.8 million, a slight increase of 2% from $135.7 million in Q3 2024[167] - The company recorded a $4 million increase in full year tax expense due to changes in tax law effective July 4, 2025[173] - Corporate unallocated expenses for the three months ended September 30, 2025 increased by $2.8 million, or 4%, primarily due to higher sales, general and administrative expenses[196] Stock and Shareholder Information - The company reported a net stock repurchase of $896,000 during the third quarter of 2025[19] - The company authorized a stock repurchase program of up to $100 million effective September 19, 2024, with no shares repurchased under this program as of the reporting date[100] - Under the 2023 Stock Repurchase Program, the company repurchased 971,534 shares at an average price of $102.93 for a total of $100 million in June 2024[101] Future Outlook and Strategic Initiatives - The company plans to adopt new accounting standards effective January 1, 2025, which will impact income tax disclosures[27] - The company is evaluating the impact of new guidance on expense disaggregation disclosures effective December 31, 2027[28] - The company has not identified any significant decrease in long-term customer demand for its products and services despite ongoing global economic uncertainties[25] - The company continues to monitor global supply chain disruptions and inflationary pressures on raw materials and labor costs[25] - The company anticipates increased penetration of Outcomes applications as endpoints under management grow, enhancing strategic and operational insights[159] - The company entered into an agreement to acquire Urbint, Inc. for $325 million, expected to close in Q4 2025[149] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 27%, and for the nine months ended September 30, 2025, it was 22%, differing from the federal statutory rate of 21% due to various factors[80] - Approximately $14 million in discrete tax benefits were recorded in the three months ended September 30, 2024, related to the favorable resolution of a foreign tax audit[81] - Unrecognized tax benefits related to uncertain tax positions were $98.584 million as of September 30, 2025, down from $106.132 million at December 31, 2024[84] - The company anticipates that any remaining top-up tax related to OECD Pillar 2 should be immaterial in 2025[83] Other Financial Metrics - The company reported a total other comprehensive income of $47.023 million for the nine months ended September 30, 2025[107] - The total warranty expense for the three months ended September 30, 2025, was $1.975 million, compared to $1.036 million for the same period in 2024[92] - The ending balance of the warranty accrual account as of September 30, 2025, was $20.229 million, compared to $21.732 million for the same period in 2024[91]

Core Insights - Itron reported revenue of $581.63 million for Q3 2025, a year-over-year decline of 5.5%, with EPS at $1.54 compared to $1.84 a year ago, indicating a slight surprise over estimates [1] - The revenue exceeded the Zacks Consensus Estimate of $576.45 million by 0.9%, while the EPS surpassed the consensus estimate of $1.48 by 4.05% [1] Revenue Breakdown - Device Solutions revenue was $103.62 million, below the average estimate of $111.07 million, reflecting a year-over-year decline of 15.6% [4] - Networked Solutions revenue reached $393.7 million, slightly above the average estimate of $383.53 million, with a year-over-year decline of 5.5% [4] - Outcomes revenue was $84.3 million, exceeding the average estimate of $82.67 million, showing a year-over-year increase of 10.9% [4] - Total Product Revenue was $494.32 million, below the average estimate of $499.62 million, representing an 8.2% decline year-over-year [4] - Total Service Revenue was $87.3 million, surpassing the average estimate of $77.03 million, with a year-over-year increase of 13.1% [4] Performance Metrics - Itron's shares returned +12.9% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The company holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $582 million, with adjusted EBITDA of $97 million and non-GAAP earnings per share of $1.54, reflecting a decrease in revenue compared to the previous year due to planned portfolio changes and project timing [4][9] - Gross margin reached a record 37.7%, up 360 basis points year over year, while GAAP net income was $66 million, down from $78 million in the prior year due to higher tax expenses [9][10] - Free cash flow was a record $113 million, representing 19.5% of revenue, compared to $59 million a year ago, attributed to improved working capital and operational earnings growth [10][13] Business Line Data and Key Metrics Changes - Device Solutions revenue decreased by 19% on a constant currency basis, primarily due to a decline in legacy electricity products in EMEA and lower water volumes in North America [11] - Network Solutions revenue decreased by 6% year over year, mainly due to the timing of project deployments [11] - Outcomes revenue increased by 10% on a constant currency basis, driven by growth in recurring revenue [11][12] Market Data and Key Metrics Changes - The total backlog at the end of Q3 was $4.3 billion, with Q3 bookings at $380 million [4][9] - The company noted that while there is a slower pace on some projects, there have been no project cancellations or declines in customer interest, although market uncertainty has increased [5][6] Company Strategy and Development Direction - The company is focused on enhancing grid performance and reliability through the adoption of grid edge technology, which is expected to drive future growth [5][17] - The recent acquisition of Urbant is expected to complement the company's portfolio and address critical infrastructure needs, with a focus on operational resilience solutions [6][8][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while current dynamics may temper year-end booking expectations, the long-term growth trajectory remains unchanged [6][17] - The company anticipates Q4 revenue to be between $555 million to $565 million, representing a decline of 9% year over year, but expects non-GAAP earnings per share to increase due to favorable tax items [14][15] Other Important Information - The company has seen a 25% expansion in its opportunity pipeline since the start of the year, indicating strong market demand despite current challenges [6][17] - The company’s total debt at the end of Q3 was $1.265 billion, with cash and equivalents at $1.332 billion [13] Q&A Session Summary Question: Clarification on revenue decline and gross margins - Management indicated that the biggest weakness was in Network Solutions due to slower project deployments, but gross margins for Q4 are expected to be similar to Q3 [22][24] Question: Insights on project delays and demand environment - Management confirmed that while there are delays in hardware-oriented projects, recurring revenue bookings are strong, and the overall demand remains robust [25][28] Question: Details on Network Solutions revenue decline - The decline was attributed to the completion of major deployments and customers spreading projects over longer periods due to budget constraints [34][36] Question: Backlog and delivery times - Management noted that some projects are being extended over longer periods, but this does not indicate a loss of backlog or revenue [67][68] Question: Future growth trajectory and Urbant acquisition - Management stated it is too early to provide guidance for 2026, but growth is expected, and the Urbant acquisition is anticipated to enhance service offerings and customer engagement [50][55]

Core Insights - Itron reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.48 per share, but down from $1.84 per share a year ago, representing an earnings surprise of +4.05% [1] - The company achieved revenues of $581.63 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.90%, although this is a decline from $615.46 million year-over-year [2] - Itron has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Itron's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.46, with expected revenues of $583.15 million, while for the current fiscal year, the EPS estimate is $6.07 on revenues of $2.37 billion [7] Industry Context - Itron operates within the Zacks Electronics - Testing Equipment industry, which is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5][6]