Core Insights - Itron, Inc. has appointed Sheri Savage, former CFO of Ultra Clean Holdings, to its board of directors, effective August 11, 2025, bringing over 30 years of finance experience [1][2]. Company Overview - Itron is focused on innovating solutions for utilities and cities to manage energy and water, aiming to improve efficiency and deliver reliable services [5]. Leadership Experience - Sheri Savage has held multiple leadership roles at Ultra Clean Holdings since 2009, becoming CFO in 2016 and leading the company through significant revenue and earnings growth [2]. - Prior to her role at UCT, Savage served as corporate controller and vice president of finance at Credence Systems Corporation, and held various roles at Protiviti and KLA-Tencor Corporation [2]. Board Expectations - The chair of Itron's board, Diana Tremblay, highlighted Savage's strategic financial leadership and extensive experience in various financial domains as key qualifications for her board position [3]. - Itron's CEO, Tom Deitrich, expressed confidence that Savage's experience in public company finance will be beneficial for advancing the company's business strategy and enhancing shareholder value [4].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Group 1: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Group 2: Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on finding undervalued stocks [3] Group 3: Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Score assesses trends in stock prices and earnings estimates, helping investors identify favorable times to invest in high-momentum stocks [5] Group 5: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [6] Group 6: Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Group 7: Stock Highlight - Itron Inc (ITRI) - Itron Inc, a technology and services company, is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A [11] - The company is projected to have a year-over-year earnings growth of 4.8% for the current fiscal year, with recent earnings estimates revised upward [12] - Itron has an average earnings surprise of +32.5%, making it a strong candidate for growth investors [12]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Itron (ITRI), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like Zacks Rank for making informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - Itron has an average brokerage recommendation (ABR) of 1.30, indicating a consensus between Strong Buy and Buy, with 80% of recommendations being Strong Buy and 10% being Buy [2][14]. - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate they often fail to guide investors effectively towards stocks with high potential for price appreciation [5][10]. Group 2: Analyst Bias and Limitations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - The interests of brokerage firms may not align with those of retail investors, leading to a lack of insight into future stock price movements [7][10]. Group 3: Zacks Rank as a Tool - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more effective indicator of near-term stock price performance compared to ABR [8][11]. - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the potentially outdated ABR [12]. Group 4: Itron's Earnings Estimates - The Zacks Consensus Estimate for Itron has increased by 11.7% over the past month to $5.89, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates has contributed to Itron receiving a Zacks Rank 2 (Buy), suggesting a favorable outlook for the stock [14].

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Itron (ITRI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the energy and water meter sector, which is currently positioned for growth [3] Group 2: Earnings Growth - Itron has a historical EPS growth rate of 36.7%, with projected EPS growth of 4.8% this year, surpassing the industry average of 4.7% [4] Group 3: Cash Flow Growth - Itron's year-over-year cash flow growth stands at 50.8%, significantly higher than the industry average of 11.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 4.9%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Itron, with the Zacks Consensus Estimate for the current year increasing by 11.7% over the past month [8] Group 5: Investment Positioning - Itron has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Itron (ITRI) FY Conference Summary Company Overview - Itron is a technology and solutions provider for utilities and cities globally, with a market cap of approximately $5.5 to $6 billion and annual revenue of about $2.5 billion [4][5] - The company serves around 8,000 customers, focusing on electricity, gas, and water utilities [5] Industry Challenges - Utilities face aging infrastructure and the need to integrate renewable energy sources, leading to increased complexity in managing generation capacity [6] - Environmental pressures such as floods, fires, and storms necessitate resilient and reliable utility services [6] - Consumer expectations for service interaction with utilities are rising [6] Technological Solutions - Itron's grid edge intelligence platform connects various endpoints through a secure IoT network, enabling proactive problem-solving for utilities [8] - The platform allows for applications that can monitor energy usage and detect potential issues, enhancing operational efficiency [8] Financial Performance and Outlook - The company revised its profitability outlook upward by 13% year-over-year but lowered revenue expectations by about 3% or $75 million due to project timing and labor constraints [9][12] - Itron has a backlog of $4.5 billion, providing three to four years of visibility for revenue flow [14] - The utility industry is expected to grow significantly, with a projected annual growth rate of 2-7% over the next 20-30 years [16] Customer Demand and CapEx Trends - The pipeline of opportunities for Itron is at an all-time high, with utility CapEx budgets increasing year-over-year [20][21] - Distribution CapEx is growing faster than other segments, expected to rise from 42% to 43-44% of total budgets in the coming years [21] - Utilities are prioritizing projects based on operational readiness, leading to potential delays in project timelines [22] Regulatory Environment - Rate cases are becoming more complex and taking longer to approve due to increased scrutiny from utility commissions [30] - The average return on approved rate cases is around 9.8%, indicating a constructive regulatory environment despite longer approval times [32] Federal Policy Impact - Federal funding from initiatives like the IIJA is seen as a secondary effect, with utilities likely to proceed with projects regardless of funding availability [37][40] - The company has not observed any significant pullback in project funding, although there is a shift towards legacy projects over renewables [40] Long-term Growth Targets - Itron remains confident in achieving its 2027 growth targets, with current performance tracking ahead of expectations [43] - The outcomes business has shown double-digit growth, driven by increased data utilization and customer demand for advanced solutions [48] M&A Strategy - Itron is actively seeking M&A opportunities to enhance its outcomes business, focusing on scalable and data-driven solutions [63][66] - The company is prepared to act quickly on suitable acquisitions, leveraging a strong balance sheet [68] Margin and Cash Flow Insights - Despite lower revenue projections, Itron raised its profitability outlook due to better product mix and productivity improvements [69] - Free cash flow conversion is tracking ahead of targets, driven by reduced capital expenditures and favorable tax legislation [78][80] Conclusion - Itron is well-positioned to capitalize on the growing demand for utility solutions amid significant industry challenges, with a strong focus on technology, regulatory navigation, and strategic growth initiatives [82]

Core Insights - Itron reported a significant earnings beat with non-GAAP earnings per share at $1.62, exceeding analyst estimates of $1.35, while GAAP revenue was slightly below expectations at $607 million, down from $609 million year-over-year [1][2][5] Financial Performance - Non-GAAP EPS increased by 33.9% year-over-year from $1.21 in Q2 2024 to $1.62 in Q2 2025 [2] - GAAP revenue was $607 million, a decrease of 0.3% from $609 million in Q2 2024 [2] - Gross margin improved to 36.9%, up 2.3 percentage points from 34.6% in Q2 2024 [2][8] - Free cash flow more than doubled to $91 million from $45 million in Q2 2024, reflecting a 102.2% increase [2] - Adjusted EBITDA grew by 16.9% year-over-year to $90 million [2] Business Segments - Device Solutions revenue declined by 5% due to lower legacy electricity product sales, partially offset by increased water sales [5] - Networked Solutions revenue saw a 1% decline, attributed to shipment timing and the absence of one-time revenue recognized in Q2 2024 [5] - Outcomes segment, which includes utility software and data analytics, grew by 9% year-over-year, with a gross margin of 39.2% [6] Strategic Focus - Itron is focusing on technological innovation, investing in research and development for edge intelligence hardware and software applications [4] - The company emphasizes software and recurring revenue as key components of its value proposition, alongside supply chain management and strategic partnerships [4] Operational Highlights - The company achieved record profitability in Q2 2025, with a significant increase in cash and equivalents year-to-date [8] - Total long-term debt was reduced, enhancing the balance sheet, while the backlog rose to $4.5 billion, providing medium-term revenue visibility [9] Future Outlook - Itron updated its FY2025 guidance, projecting revenue between $2.35 billion and $2.4 billion and non-GAAP diluted EPS between $6.00 and $6.20 [10] - For Q3 2025, expected revenue is between $570 million and $585 million, with non-GAAP diluted EPS between $1.45 and $1.55 [10]

Core Insights - Itron Inc. reported non-GAAP EPS of $1.62 for Q2 2025, exceeding the Zacks Consensus Estimate by 21.8% and surpassing management's guidance of $1.30-$1.40 [1][9] - Revenue for the quarter was $607 million, nearly flat compared to $609 million in the prior-year quarter, and came in at the upper end of the guided range [2][9] - The company adjusted its full-year revenue outlook downward by nearly 3%, projecting revenue of $2.35-$2.4 billion, while raising its EPS forecast midpoint by 13% to $6.00-$6.20 [3][4] Revenue Breakdown - Product revenues were $517.2 million, accounting for 85.2% of total revenues, down 3% year over year, while service revenues increased by 17.6% to $89.6 million [5] - The Device Solutions segment saw a 5% decline in revenue to $113 million, while the Networked Solutions segment's revenue dipped 1% to $409 million [7] - Outcomes revenue rose 9% to $85 million, driven by growth in recurring revenue and software licenses [10] Operational Performance - Itron's gross margin improved to 36.9%, a 230 basis point increase year over year, attributed to a favorable product and customer mix [11] - Non-GAAP operating income reached a record high of $82 million, marking a 19% year-over-year increase, with adjusted EBITDA also hitting a new record at $90 million [11] Financial Position - As of June 30, 2025, cash and cash equivalents totaled $1.224 billion, with net long-term debt at $787 million [12] - The company generated strong cash flow, with net cash from operations totaling $97 million and free cash flow of $91 million, nearly doubling the prior year's performance [13] Future Outlook - For Q3 2025, Itron expects revenues between $570 million and $585 million, representing a 6% year-over-year decline at the midpoint, with non-GAAP EPS anticipated in the range of $1.45-$1.55 [14]

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This section details Itron's unaudited financial statements, management's analysis, market risk disclosures, and internal controls [Item 1: Financial Statements (Unaudited)](index=4&type=section&id=Item%201%3A%20Financial%20Statements%20%28Unaudited%29) This section presents Itron's unaudited consolidated financial statements, including operations, balance sheets, cash flows, and notes [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenues were **$606.8 million**, with gross profit at **$223.6 million** and net income attributable to Itron at **$68.3 million** Q2 & YTD 2025 vs 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | YTD 2025 | YTD 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $606,761 | $609,069 | -0.4% | $1,213,912 | $1,212,511 | +0.1% | | **Gross Profit** | $223,618 | $210,460 | +6.2% | $440,837 | $415,839 | +6.0% | | **Operating Income** | $76,413 | $64,647 | +18.2% | $152,626 | $127,447 | +19.8% | | **Net Income (to Itron)** | $68,340 | $51,318 | +33.2% | $133,814 | $103,039 | +29.9% | | **Diluted EPS** | $1.47 | $1.10 | +33.6% | $2.89 | $2.22 | +30.2% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached **$3.62 billion**, with cash and equivalents at **$1.22 billion** and total equity at **$1.63 billion** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,988,873 | $1,815,892 | | Cash and cash equivalents | $1,224,257 | $1,051,237 | | **Total Assets** | **$3,623,768** | **$3,407,623** | | **Total Current Liabilities** | $973,059 | $528,265 | | **Total Liabilities** | **$1,989,344** | **$1,996,195** | | **Total Equity** | **$1,634,424** | **$1,411,428** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the six months ended June 30, 2025, was **$168.8 million**, a significant improvement from **$93.0 million** in the prior year Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $168,802 | $93,025 | | **Net cash used in investing activities** | ($10,651) | ($47,820) | | **Net cash provided by financing activities** | $4,751 | $576,839 | | Effect of foreign exchange rate changes | $10,118 | ($3,454) | | **Increase in cash and cash equivalents** | **$173,020** | **$618,590** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, debt structure, segment information, and revenue recognition, including **$2.2 billion** in remaining performance obligations - The company's debt is primarily composed of two convertible note issuances: **$460 million** due in 2026 and **$805 million** due in 2030[43](index=43&type=chunk)[49](index=49&type=chunk)[54](index=54&type=chunk) - The company operates and reports under three segments: Device Solutions (hardware), Networked Solutions (communicating devices and network infrastructure), and Outcomes (software and services)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Total transaction price allocated to remaining performance obligations is approximately **$2.2 billion**, with **$1.1 billion** expected to be recognized as revenue in the next 12 months[123](index=123&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial results, highlighting improved gross margin, segment performance, and strong liquidity with **$1.22 billion** in cash and **$4.5 billion** in backlog [Total Company Highlights](index=32&type=section&id=Total%20Company%20Highlights) Q2 2025 highlights include revenues of **$606.8 million**, gross margin of **36.9%**, GAAP diluted EPS of **$1.47**, and total backlog of **$4.5 billion** Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenues** | $606.8M | $609.1M | | **Gross Margin** | 36.9% | 34.6% | | **GAAP Diluted EPS** | $1.47 | $1.10 | | **Non-GAAP Diluted EPS** | $1.62 | $1.21 | | **Adjusted EBITDA** | $89.8M | $77.1M | | **Total Backlog** | $4.5B | $4.1B | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q2 2025 revenues slightly decreased by **$2.3 million**, while gross margin improved to **36.9%** and other income significantly increased to **$7.1 million** - Q2 2025 total revenues decreased by **$2.3 million** YoY, with a decline in product revenues offset by growth in service revenues[148](index=148&type=chunk) - Gross margin for Q2 2025 improved to **36.9%** from **34.6%** in Q2 2024, driven by favorable product mix and increased service revenue margins[151](index=151&type=chunk) - Other income rose to **$7.1 million** in Q2 2025, up from **$2.4 million** in Q2 2024, largely due to a **$7.2 million** increase in interest income from invested proceeds of the 2024 Notes[156](index=156&type=chunk) [Operating Segment Results](index=37&type=section&id=Operating%20Segment%20Results) Device Solutions revenue declined **5%** to **$112.8 million**, Networked Solutions decreased **1%** to **$408.9 million**, and Outcomes revenue grew **9%** to **$85.1 million** Q2 2025 Segment Performance (in thousands) | Segment | Revenues | YoY Change | Gross Profit | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | **Device Solutions** | $112,760 | -5% | $33,591 | 29.8% | | **Networked Solutions** | $408,934 | -1% | $157,243 | 38.5% | | **Outcomes** | $85,067 | +9% | $32,784 | 38.5% | - Device Solutions revenue decreased due to a planned decline in electric meter sales, but gross margin improved due to a better product mix[163](index=163&type=chunk)[165](index=165&type=chunk) - Outcomes segment revenue growth was driven by recurring revenue and software licenses, leading to a **370 basis point** increase in gross margin[174](index=174&type=chunk)[176](index=176&type=chunk) [Bookings and Backlog of Orders](index=41&type=section&id=Bookings%20and%20Backlog%20of%20Orders) Quarterly bookings for Q2 2025 were **$454 million**, resulting in an ending total backlog of **$4.51 billion** and a 12-month backlog of **$1.54 billion** Bookings and Backlog Trend (in millions) | Quarter Ended | Quarterly Bookings | Ending Total Backlog | Ending 12-Month Backlog | | :--- | :--- | :--- | :--- | | **June 30, 2025** | $454 | $4,514 | $1,544 | | **March 31, 2025** | $530 | $4,659 | $1,593 | | **December 31, 2024** | $1,403 | $4,734 | $1,767 | | **June 30, 2024** | $447 | $4,093 | $1,809 | [Financial Condition, Liquidity and Capital Resources](index=41&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased by **$173.0 million** to **$1.22 billion**, driven by strong operating cash flow of **$168.8 million**, with free cash flow at **$158.1 million** - Cash and cash equivalents increased by **$173.0 million** during the first half of 2025, reaching **$1.22 billion**[184](index=184&type=chunk) - Net cash from operating activities for the first six months of 2025 was **$168.8 million**, up from **$93.0 million** in the same period of 2024, due to higher earnings and improved working capital conversion[185](index=185&type=chunk) Free Cash Flow (Non-GAAP, in thousands) | Component | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $168,802 | $93,025 | | Acquisitions of property, plant, and equipment | ($10,656) | ($14,255) | | **Free cash flow** | **$158,146** | **$78,770** | [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency exchange rate risks, with **25%** of Q2 2025 revenues in non-U.S. dollar currencies, primarily the euro, mitigated by forward contracts - The company had no outstanding variable rate debt as of June 30, 2025, limiting its exposure to interest rate risk[222](index=222&type=chunk) - Foreign currency risk is significant, with **25%** of Q2 2025 revenues denominated in non-U.S. dollar currencies, primarily the euro[223](index=223&type=chunk) - Itron utilizes foreign exchange forward contracts, not designated for hedge accounting, to reduce earnings volatility from currency fluctuations[224](index=224&type=chunk) [Item 4: Controls and Procedures](index=49&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during Q2 2025 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[226](index=226&type=chunk) - No material changes were made to the company's internal control over financial reporting during the three months ended June 30, 2025[227](index=227&type=chunk) [PART II: OTHER INFORMATION](index=50&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) This section covers other important information, including legal proceedings, risk factors, equity security sales, and a list of exhibits filed with the report [Item 1: Legal Proceedings](index=50&type=section&id=Item%201%3A%20Legal%20Proceedings) This section refers to Note 11 of the financial statements for detailed information regarding legal proceedings - Information on legal proceedings is provided in Note 11: Commitments and Contingencies in Part I of this report[230](index=230&type=chunk) [Item 1A: Risk Factors](index=50&type=section&id=Item%201A%3A%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - The company directs investors to its 2024 Annual Report on Form 10-K for a complete list of risk factors[231](index=231&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details on the stock repurchase program are provided, noting **58 shares** repurchased during the quarter and **$100 million** remaining under the authorized plan - A new stock repurchase program for up to **$100 million** was authorized effective September 19, 2024[235](index=235&type=chunk) Issuer Repurchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | April 2025 | 0 | $— | $100,000 | | May 2025 | 58 | $112.63 | $100,000 | | June 2025 | 0 | $— | $100,000 | | **Total** | **58** | | **$100,000** | [Item 6: Exhibits](index=51&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed include Sarbanes-Oxley Act certifications (31.1, 31.2, 32.1) and financial data in Inline XBRL format (101)[236](index=236&type=chunk)

Core Insights - Itron reported revenue of $606.76 million for the quarter ended June 2025, a decrease of 0.4% year-over-year, with an EPS of $1.62, up from $1.21 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $609.26 million, resulting in a surprise of -0.41%, while the EPS exceeded the consensus estimate of $1.33 by 21.8% [1] Revenue Breakdown - Device Solutions revenue was $112.76 million, slightly below the average estimate of $113.1 million, reflecting a year-over-year decline of 4.9% [4] - Outcomes revenue reached $85.07 million, compared to the average estimate of $85.73 million, marking a year-over-year increase of 9.3% [4] - Networked Solutions revenue totaled $408.93 million, below the average estimate of $411.45 million, with a year-over-year change of -0.9% [4] Service and Product Revenue - Service Revenue from Networked Solutions was $29.45 million, exceeding the average estimate of $24.94 million, with a year-over-year increase of 16.2% [4] - Total Service Revenue amounted to $89.58 million, surpassing the average estimate of $77.61 million, reflecting a year-over-year growth of 17.6% [4] - Total Product Revenue was $517.18 million, below the average estimate of $531.86 million, indicating a year-over-year decline of 3% [4] Gross Profit and Performance Metrics - Gross Profit for Device Solutions was reported at $33.59 million, exceeding the average estimate of $30.33 million [4] - Itron's shares returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported revenue of $607 million for Q2 2025, slightly lower than the previous year due to constrained revenue catch-up [11] - Adjusted EBITDA reached $90 million, marking a 16% year-over-year increase [12] - Non-GAAP earnings per share (EPS) increased to $1.62, up from $1.21 a year ago, reflecting strong operational performance [12] - Free cash flow was a record $91 million, compared to $45 million in the prior year [12] Business Segment Data and Key Metrics Changes - Device Solutions revenue decreased by 8% year-over-year, primarily due to a decline in legacy electric product sales, partially offset by growth in water [13] - Network Solutions revenue decreased by 1% year-over-year, mainly due to the non-recurrence of revenue catch-up from the previous year [13] - Outcomes revenue increased by 9% year-over-year, driven by growth in recurring revenue and software licenses [13] Market Data and Key Metrics Changes - The company shipped over 15.3 million distributed intelligence endpoints by the end of Q2, up from 14.4 million at the end of Q1 [7] - The long-term market outlook remains positive, driven by rising electricity demand and a focus on efficiency and safety, despite short-term project delays [8] Company Strategy and Development Direction - The company is focused on expanding its differentiated Outcomes segment and maintaining market leadership in agile distribution infrastructure [7] - Itron is actively pursuing mergers and acquisitions, particularly in software services, to enhance its portfolio [48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic and trade policy uncertainties affecting project deployments and decision-making [8] - The full-year revenue outlook midpoint was lowered by approximately 3%, while the EPS outlook midpoint was raised by 13% due to growing customer demand for high-value solutions [8][20] - Management remains confident in the long-term market growth despite short-term challenges [22] Other Important Information - Total debt stood at $1.265 billion, with net debt at $41 million as of June 30 [17] - The company anticipates Q3 revenue between $570 million to $585 million, reflecting a 6% decrease compared to the previous year [18] Q&A Session Summary Question: Margin outlook and factors affecting it - Management indicated that the EBITDA margin is higher than expected due to structural changes in the device business, which improved margins [26][28] Question: Near-term revenue outlook and backlog - Management clarified that the slowdown is more related to backlog deployment rather than book and ship business, with no project cancellations [31][32] Question: Regulatory approval pace and its impact - Management noted that the pace of regulatory approvals is normal, with some projects experiencing delays due to sequencing and labor constraints [38][43] Question: M&A strategy in light of regulatory changes - Management confirmed that the regulatory environment has not changed their M&A strategy, remaining active in seeking accretive acquisitions [48] Question: Earnings growth versus revenue growth - Management expects growth in earnings year-over-year, but the trajectory will depend on the timing of bookings in the second half of the year [51] Question: Complexity of projects and regulatory pushback - Management stated that the complexity of projects is not a significant factor in delays, as regulators focus on balancing consumer costs with utility needs [56][58] Question: European market opportunities - Management expressed optimism about the European market, noting increased interest in edge intelligence solutions [64][66] Question: Aspirational sales targets for 2027 - Management confirmed that there is no change to the 2027 sales targets despite near-term uncertainties [70]