Financial Performance - Q3 2025 - Revenue reached $582 million[4], a decrease of 5% year-over-year, or 6% in constant currency, due to portfolio optimization and project deployment timing[9] - Adjusted EBITDA was $97 million[4], representing a 10% increase year-over-year, with an adjusted EBITDA margin of 16.7%, up 230 bps[10] - Non-GAAP diluted EPS was $1.54[4], a decrease of 16% year-over-year, impacted by higher non-GAAP income tax expense[10] - Free cash flow surged to $113 million[4], a 93% increase year-over-year, driven by improved working capital, decreased tax payments, and higher earnings[10] Bookings and Backlog - Q3 2025 bookings amounted to $380 million[6], resulting in a book-to-bill ratio of 0.65[6] - The trailing twelve months (TTM) book-to-bill ratio stood at 1.15[6] - Ending backlog reached $4.3 billion[6] Segment Performance - Q3 2025 - Device Solutions revenue decreased by 16% (19% in constant currency)[21], while gross margin increased by 370 bps and operating margin increased by 240 bps[21] - Networked Solutions revenue decreased by 6%[25], but gross margin increased by 340 bps and operating margin increased by 330 bps[26, 27] - Outcomes segment revenue increased by 11% (10% in constant currency)[30], with gross margin up 390 bps and operating margin up 520 bps[31, 32] Outlook - Q4 2025 revenue is projected to be between $555 million and $565 million[37], a 9% decrease at the midpoint compared to Q4 2024[37] - Q4 2025 non-GAAP diluted EPS is expected to be between $2.15 and $2.25[37], a 63% increase at the midpoint compared to Q4 2024, including a discrete tax benefit[37] - Full-year 2025 revenue is projected to be between $2.35 billion and $2.36 billion[38], a 3% decrease at the midpoint compared to 2024[39] - Full-year 2025 non-GAAP EPS is projected to be between $6.84 and $6.94[38], a 23% increase at the midpoint compared to 2024[39]

Revenue Performance - Total revenue for Q3 2025 was $582 million, a decrease of 5% compared to $615 million in Q3 2024[3] - Total revenues for the three months ended September 30, 2025, were $581,625,000, a decrease of 5.5% compared to $615,462,000 for the same period in 2024[23] - Device Solutions product revenues decreased to $103,097,000 in Q3 2025 from $122,119,000 in Q3 2024, representing a decline of 15.6%[23] - Networked Solutions product revenues also saw a decline, falling to $365,378,000 in Q3 2025 from $390,201,000 in Q3 2024, a decrease of 6.3%[23] - The outlook for Q4 2025 includes projected revenue between $555 million and $565 million, with non-GAAP diluted EPS expected between $2.15 and $2.25[15] Profitability Metrics - GAAP net income for the quarter was $66 million, or $1.41 per diluted share, down from $78 million, or $1.70 per diluted share in 2024[7] - Non-GAAP net income was $72 million, or $1.54 per diluted share, down from $84 million, or $1.84 per diluted share in 2024[9] - GAAP operating income for Q3 2025 was $81,783,000, an increase from $73,933,000 in Q3 2024, representing a growth of about 10.5%[40] - Adjusted EBITDA for the quarter was $97 million, reflecting a 10% increase[7] - Adjusted EBITDA for Q3 2025 was $97,248,000, an increase from $88,598,000 in Q3 2024, representing a growth of approximately 7.4%[40] Cash Flow and Working Capital - Free cash flow increased to $113 million, up $55 million from the prior year, driven by improved working capital and higher earnings[10] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $286,631,000, compared to $158,326,000 for the same period in 2024, showing an increase of 81.0%[28] - The company reported net cash provided by operating activities of $117,829,000 for Q3 2025, compared to $65,301,000 in Q3 2024, an increase of about 80.7%[41] - Free cash flow for the nine months ended September 30, 2025, was $271,554,000, compared to $137,448,000 for the same period in 2024, indicating a significant increase of about 97.5%[41] Balance Sheet and Backlog - Total backlog at the end of the quarter was $4.3 billion, compared to $4.0 billion in the prior year[11] - Cash and cash equivalents increased to $1,331,944,000 as of September 30, 2025, compared to $1,051,237,000 at the end of 2024, reflecting a growth of 26.7%[26] - Total current assets reached $2,144,031,000 as of September 30, 2025, up from $1,815,892,000 at the end of 2024, indicating an increase of 18.1%[26] - Total liabilities stood at $1,997,343,000 as of September 30, 2025, slightly up from $1,996,195,000 at the end of 2024[26] Strategic Initiatives - Itron announced the acquisition of Urbint, Inc. for $325 million, expected to close in Q4 2025[12] - The company’s strategic initiatives and acquisition-related expenses totaled $2,552,000 in Q3 2025, compared to $248,000 in Q3 2024, indicating a significant increase in investment in growth strategies[40]

Core Insights - Itron, Inc. reported third quarter financial results for 2025, highlighting record margins, profitability, and cash flow despite a decrease in total revenue compared to the previous year [1][2]. Financial Performance - Total revenue for the third quarter was $582 million, down from $615 million in the prior year, primarily due to portfolio optimization and project deployment timing [2]. - Device Solutions revenue decreased by 16%, or 19% in constant currency, attributed to lower legacy electricity product sales in EMEA and reduced North American water volumes [3]. - Networked Solutions revenue fell by 6% due to project deployment timing, while Outcomes revenue increased by 11%, or 10% in constant currency, driven by higher recurring revenue [3]. Profitability Metrics - Gross margin improved to 37.7%, an increase of 360 basis points from the previous year, due to favorable customer and product mix [4]. - GAAP operating income rose to $82 million, an increase of $8 million from the prior year, while non-GAAP operating income increased by $10 million to $89 million, both driven by higher gross profit [5]. Net Income and Earnings - Net income attributable to Itron, Inc. was $66 million, or $1.41 per diluted share, down from $78 million, or $1.70 per diluted share in 2024, primarily due to higher GAAP income tax expense [6]. - Non-GAAP net income was $72 million, or $1.54 per diluted share, compared to $84 million, or $1.84 per diluted share in the previous year, also impacted by higher non-GAAP income tax expense [7]. Cash Flow and Backlog - Net cash provided by operating activities was $118 million, significantly up from $65 million in the prior year, while free cash flow increased to $113 million from $59 million [8][9]. - Total backlog at the end of the quarter was $4.3 billion, compared to $4.0 billion in the prior year, with bookings totaling $380 million for the quarter [10]. Acquisition Activity - Itron announced the acquisition of Urbint, Inc. for $325 million, expected to close in the fourth quarter of 2025, which will be funded through cash on hand [11].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Itron, Inc. is supporting Project Jupiter to enhance the integration of distributed energy resources (DER) in Western Australia, utilizing its Low Voltage Distributed Energy Resource Management System (LV DERMS) [1][2]. Group 1: Project Overview - Project Jupiter is a collaboration involving Western Power, Synergy, the Australian Energy Market Operator, and Energy Policy WA, aimed at integrating DERs like rooftop solar and community batteries into the South West Interconnected System (SWIS) [2]. - The project enables households and businesses to participate in virtual power plants (VPPs), facilitating the energy transition [2]. Group 2: Technology and Implementation - Synergy, the largest electricity generator in Western Australia, is implementing Itron's LV DERMS solution, which includes the IEEE 2030.5 Common Smart Inverter Profile-Australia (CSIP-Aus) utility server from Kitu Systems [3]. - The server is designed to register, monitor, and control DERs, enhancing the management of battery energy storage systems [3]. Group 3: Benefits and Future Prospects - Customers will have the option to join a VPP, allowing them to unlock greater value from their energy assets, with Itron's LV DERMS facilitating DER compliance testing [4]. - The project is seen as a significant step in defining and assuring compliance with emerging standards in the energy sector [5].

Market Overview - The U.S. stock market reached record highs driven by optimism surrounding trade discussions between Washington and Beijing, with the Dow Jones Industrial Average closing at 47,544.59, up 337.47 points (0.71%) [1] - The S&P 500 and Nasdaq Composite also saw significant gains, closing at 6,875.16 (up 1.23%) and 23,637.46 (up 1.86%) respectively [1] - The U.S. dollar weakened slightly as investors favored equities, anticipating a more favorable macroeconomic environment [1] Central Bank Policies and Earnings Reports - Market momentum was influenced by expectations regarding central bank policies and upcoming major corporate earnings reports [2] - There is strong anticipation for a rate cut decision from the Federal Reserve, particularly following a soft consumer price index in September [2] - The ongoing U.S. government shutdown complicates the Fed's assessment of economic conditions [2] Value Stocks and Investment Strategies - Investors are focusing on the earnings season, with major companies expected to report results that could provide insights into corporate profitability amid changing global trade conditions [3] - Value stocks, often trading below their intrinsic value, are seen as a safer investment during periods of market uncertainty [3] - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for evaluating value stocks, with companies like StoneCo Ltd. (STNE), Itron, Inc. (ITRI), PG&E Corporation (PCG), and PagSeguro Digital Ltd. (PAGS) noted for their low P/CF ratios [4][10] Financial Health and Cash Flow - The P/CF ratio is considered more reliable than the Price/Earnings (P/E) ratio as it accounts for non-cash charges, providing a clearer picture of a company's financial health [5][6] - Positive cash flow indicates an increase in liquid assets, allowing companies to manage debt, reinvest, and undertake shareholder-friendly actions [7] Stock Selection Parameters - A comprehensive investment strategy should include multiple valuation metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [8][11][12] - Specific parameters for selecting true-value stocks include a P/CF less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume exceeding 100,000 [9][11] Company Performance Highlights - StoneCo Ltd. (STNE) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 11.5% and projected sales and EPS growth of 14.3% and 24.4% respectively [14] - Itron, Inc. (ITRI) holds a Zacks Rank 2, with a trailing earnings surprise of 32.5% and expected EPS growth of 8% [15] - PG&E Corporation (PCG) also has a Zacks Rank 2, with projected sales and EPS growth of 6.7% and 10.3% respectively, despite a share price decline of 18.4% over the past year [16] - PagSeguro Digital (PAGS) carries a Zacks Rank 2, with a trailing earnings surprise of 10.1% and expected sales and EPS growth of 5.5% and 14.9% respectively, with shares up 19.4% in the past year [17]

Core Insights - North American utilities are rapidly adopting AI and data analytics, with 41% of executives reporting full integration of AI technologies, significantly ahead of the previous year's forecast of 27% [2][4] - The industry is under pressure from increasing demand due to manufacturing growth, electrification, and AI data centers, necessitating the modernization of infrastructure [3][4] Group 1: AI Adoption and Impact - The pace of AI adoption in utilities is unprecedented, viewed as a resilience strategy rather than a trend, with applications in predictive maintenance, hazard detection, and customer service [4][6] - 57% of executives see AI as crucial for optimizing grid performance, including load balancing and reducing energy loss [6] - Safety is a primary concern, with 53% of executives highlighting AI's role in hazard detection, enabling quicker responses than traditional methods [6] Group 2: Demand Forecasting and Customer Engagement - Demand forecasting is identified as a top priority by 51% of utility leaders, enhancing energy management and renewable integration for improved service reliability [6] - Consumer expectations are rising, with 57% of executives citing customer support as a significant challenge, driven by demands for personalized insights and proactive notifications [6]

Core Insights - Itron, Inc. is collaborating with Gordian Technologies to integrate AI and machine learning into its Grid Edge Intelligence (GEI) portfolio, enhancing utilities' ability to manage energy and water more effectively [1][4] - The partnership aims to improve grid resilience, operational efficiency, and disaster management while providing affordable energy to customers [1][2] Company Overview - Itron is focused on transforming energy, water, and city services management through intelligent infrastructure solutions that enhance efficiency and resilience [6] - Gordian Technologies specializes in edge AI software, providing platforms that enable efficient machine learning and AI capabilities on resource-constrained devices [5] Technology Integration - The integration of Gordian's AI and ML technology into Itron's GEI portfolio will allow utilities to detect, analyze, and classify millions of data events in milliseconds, maximizing the value of smart infrastructure investments [2][3] - The Gordian platform will be accessible through Itron's Distributed Intelligence (DI) Developer Program, enabling developers to create applications that address various utility challenges [3][4] Benefits of Collaboration - The collaboration is expected to deliver advantages such as faster response times, lower operational costs, and decentralized automation, allowing utilities to make real-time, site-specific decisions [4][8] - The enhanced capabilities will support use cases like electric vehicle connection detection and arc flash detection, improving service delivery to customers [3][4]

Core Thesis - Itron, Inc. is positioned to benefit from a generational replacement cycle in metering solutions, with a strong market share in electricity, gas, and water utilities [3][4]. Company Overview - Itron generates approximately 60% of its revenue from electricity utilities, 20% from gas, and 20% from water utilities, operating through Device Solutions, Networked Solutions, and Outcomes segments [3]. - The Networked Solutions segment is the largest revenue contributor, providing Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) endpoints, enhancing utility management through two-way communication [3]. Market Dynamics - A replacement cycle is anticipated due to high deployments from 2010 to 2012 and delays caused by COVID-19, expected to drive industry growth at around 5% through 2029 [4]. - Itron is expected to increase its market share from 48% in 2024 to potentially 60% by 2029, capitalizing on the challenges faced by competitor Landis+Gyr [5]. Competitive Advantage - Itron's superior Distributed Intelligence (DI) technology and operational execution position it well to capture market share, especially with Landis+Gyr facing organizational challenges [4][5]. - Control over the network layer enhances customer retention and positions Itron favorably for meter replacements, including approximately 12.5 million Landis meters on third-party networks [5]. Financial Projections - Itron is projected to achieve growth of 7–7.5% through 2027, with EBITDA margins expanding to 16% and EPS reaching $7.5, indicating a potential 30% upside to a target price of $160 by the end of 2026 [6]. - Key catalysts for stock rerating include visibility into the replacement cycle by late 2025 and the impact of network access restrictions in 2026 [6].

Core Insights - Itron, Inc. has launched its Gen6™ network platform and the latest UtilityIQ® application suite, enhancing interoperability and reducing integration complexity for utility telecom strategies [1][2][3] Group 1: Product Launch and Features - The Gen6 network platform extends cellular connectivity to endpoints and introduces new battery-powered mesh technology for gas and water devices, enabling distributed intelligence interoperability [1][3] - UtilityIQ now connects over 300 unique device types from nearly 100 manufacturers, streamlining device and network management under a unified headend [4] - The Gen6 platform is backward compatible with previous generations, allowing for seamless integration of next-gen devices into existing deployments [3][4] Group 2: Benefits and Strategic Implications - The new platform allows utilities to develop telecom strategies that can evolve over decades without significant IT or integration costs, enhancing long-term flexibility [2][6] - It offers greater return on investment by balancing performance with budget realities, facilitating scalability for utilities [6] - The platform supports peer-to-peer networking and is designed to be resilient and secure, ensuring dependable performance across diverse locations [6] Group 3: Availability and Future Developments - The Gen6 network platform and UtilityIQ will be available in Q4 2025, with initial products including various Itron ERT Modules and gas meters [5][7] - Future announcements will include new electric meters featuring Gen6 networking technology [7]