Core Viewpoint - Itron, Inc. will participate in the J.P. Morgan 2025 Energy, Power, Renewables & Mining Conference on June 25, 2025, in New York City, where CEO Tom Deitrich will engage in a fireside chat and investor meetings [1]. Group 1: Company Overview - Itron is focused on transforming the management of energy, water, and city services through intelligent infrastructure solutions [2]. - The company's solutions aim to enhance efficiency, build resilience, and provide safe, reliable, and affordable services to utilities and cities [2]. - Itron connects people, data insights, and devices to help communities manage essential resources effectively [2].

Core Insights - Itron, Inc. is launching its Cyble 5 communication module in the Asia-Pacific region, which enhances mechanical water meters into intelligent devices [2][10] - The Cyble 5 module facilitates a transition to automated metering, helping utilities modernize infrastructure, reduce operational costs, and improve sustainability without extensive replacements [3][10] Product Details - Production of the Cyble 5 module will commence in Q4 2025 at PT Mecoindo in Cikarang, Indonesia [4] - The module includes leak detection capabilities, continuous flow alarms, and hourly data collection, which are crucial for water conservation, especially in warmer climates like Australia and New Zealand [4][5] Market Context - Itron has successfully deployed over 2 million Cyble 5 modules in the EMEA region, with positive outcomes such as reduced water losses reported by utilities like Severn Trent Water [6][10] - The introduction of Cyble 5 in Asia-Pacific is expected to yield similar benefits for local utilities [6] Innovation and Growth - Itron's recent product innovations include the Solar Battery Access Point, set to improve connectivity in areas lacking traditional networks, and the IntelliFLEX energy management system, which optimizes grid capacity [7][8] - For Q2, Itron anticipates revenues between $605 million and $615 million, with non-GAAP EPS projected to be $1.30–$1.40, reflecting a 12% year-over-year increase at the midpoint [8] Stock Performance - Itron currently holds a Zacks Rank 3 (Hold) and has seen a stock price increase of 14.2% over the past year, outperforming the Zacks Electronics - Testing Equipment industry's growth of 0.8% [9]

Core Insights - Itron, Inc. released its 2024 Corporate Sustainability Report, emphasizing its commitment to sustainability and the positive impact of its solutions on customers and communities [1][2][3] Sustainability Strategy - The company completed its first enterprise-wide double materiality assessment in 2024, aligning sustainability priorities with stakeholder expectations and regulatory requirements [2][4] - Itron's ESG strategy is integrated into its operations, with oversight from the board of directors [3] Environmental Impact - Itron's solutions helped customers avoid 7.5 million metric tons of greenhouse gas emissions in 2024, driven by improved operational efficiency and consumer engagement [4] - The company achieved 100% ISO 14001 certification across all manufacturing facilities and reduced Scope 1 and 2 emissions by over 50% since 2019 [4] Community and Employee Engagement - Itron was recognized as one of America's Greatest Workplaces, with nearly 95% of employees expressing intent to stay with the company [4] - The company invested over $1 million in corporate philanthropy, educational outreach, and volunteerism [4] Ethical Conduct and Governance - In 2024, 100% of employees completed the Code of Conduct training, and nearly 90% of the Board remained independent [4] - Itron received an "AA" MSCI rating and a "Low Risk" designation from Sustainalytics, reflecting its strong ESG profile and values-driven leadership [4]

Core Insights - Itron, Inc. is launching its Cyble™ 5 communications module in the Asia-Pacific region, which enhances mechanical water meters into communication devices for automated meter reading and advanced metering infrastructure [1][2] - The module will be produced in Cikarang, Indonesia, starting Q4 2025, addressing utility challenges in the region, including smart metering and water conservation [2] - The Cyble 5 module is designed to withstand extreme weather conditions, making it suitable for various climates, and allows utilities to upgrade without replacing existing infrastructure [3] Group 1 - The Cyble 5 module enables utilities to reduce costs and support sustainability initiatives by improving existing metering infrastructure [1][2] - It features leak detection capabilities, which are particularly beneficial in regions facing water scarcity, such as Australia and New Zealand [2] - Itron has successfully shipped over 2 million Cyble 5 modules in the EMEA region, helping utilities like Severn Trent Water significantly reduce water losses [4] Group 2 - The module's design includes resistance to water, contaminants, corrosion, humidity, and high temperatures, ensuring durability and versatility for utilities [3] - The easy installation process of the Cyble 5 module allows utilities to transition at their own pace without the need for extensive infrastructure changes [3] - Itron positions itself as a leader in energy, water, and smart city solutions, focusing on innovative systems and resource conservation [6]

Industry Overview - The Zacks Electronics – Testing Equipment industry is facing challenges due to a difficult global macroeconomic environment, end-market volatility, unfavorable foreign exchange rates, and increasing geopolitical tensions [1] - The automotive sector is sluggish, primarily due to declining investments in electric vehicles, which is a significant headwind for industry participants [1] - Key end markets for the industry include consumer electronics, automotive, industrial, aerospace and defense, healthcare, semiconductors, and communications [2] Growth Opportunities - Companies like AMETEK, Itron, and Cognex are capitalizing on growth opportunities related to 5G, automation, and Industry 4.0 [1] - The adoption of software-enabled testing instruments and devices is increasing, providing a positive outlook for the industry [1] - The rising utilization of precision motion-control solutions and automatic test systems in various markets, including aerospace and medical, is a positive trend [3] Pharmaceutical Market - The industry is benefiting from the increasing use of electrical instruments and software in clinical and medical science research, particularly in the pharmaceutical market [4] - Agilent is noted for capitalizing on this trend, indicating strong growth potential in life science research [4] 5G Deployment - The deployment of 5G technology is expected to provide near-term benefits for industry players, with an uptick in demand for 5G test solutions [5] - The migration of infrastructure workloads to the cloud is also driving demand for high-speed Internet services, which is favorable for electronic companies associated with 5G [5] Macroeconomic Challenges - The challenging macroeconomic scenario is causing enterprises to hesitate in signing multi-year deals, which negatively impacts industry participants [6] - The Zacks Electronics – Testing Equipment industry currently ranks 174, placing it in the bottom 29% of over 250 Zacks industries, indicating dim near-term prospects [7][8] Stock Performance - The industry has underperformed the S&P 500 and its sector over the past year, declining by 2.4% compared to the S&P 500's increase of 9.3% [11] - The industry's forward 12-month price-to-earnings (P/E) ratio is currently at 21.86X, which is higher than the S&P 500's 21.36X but lower than the sector's 25.12X [13] Company Highlights - **AMETEK**: This company is experiencing solid momentum across its segments and plans to invest $85 million in global market expansion and technology innovation. The Zacks Consensus Estimate for 2025 earnings is $7.11 per share, reflecting a year-over-year growth of 4.1% [17][19] - **Itron**: Gaining from trends in electrification and energy transition, Itron's shares have climbed 3.7% year to date. The Zacks Consensus Estimate for 2025 earnings is $5.44 per share, indicating a year-over-year decline of 3.2% [22][23] - **Cognex**: The company is integrating artificial intelligence into its products and has launched innovative solutions. However, its shares have declined 17.1% year to date, with the Zacks Consensus Estimate for 2025 earnings at 88 cents per share, indicating year-over-year growth of 18.92% [25][26]

Core Insights - Itron, Inc. is accepting nominations for the 7th annual Itron Innovator Award, aimed at recognizing utility or city customers who have utilized Itron's partner enablement program to implement innovative solutions that enhance resource efficiency, safety, and community connectivity [1][4]. Group 1: Award Details - The award will be presented at Itron Inspire 2025, scheduled for October 24-30 in Orlando, Florida, with a nomination deadline of June 30, 2025 [1]. - Eligible nominations must involve solutions that are either in a pilot phase, deployed in the field, or generating quantifiable outcomes, with successful integration with Itron solutions being a key criterion [2]. Group 2: Previous Winners - In 2024, Hydro One, Ontario's largest electricity provider, won the award for its technology initiatives that utilized Itron's Distributed Intelligence applications to support grid modernization efforts [3]. Group 3: Company Overview - Itron operates in over 100 countries, providing critical infrastructure solutions for utilities and cities, including smart networks, software, services, meters, and sensors to manage electricity, gas, and water resources [6]. - The company emphasizes collaboration with customers to enhance quality of life, safety, and sustainability for millions globally, aiming to create a more resourceful world [6].

Core Points - Itron, Inc. is accepting nominations for the 7th annual Itron Innovator Award, aimed at recognizing innovative solutions from utility or city customers that enhance resource efficiency and community connectivity [1][4] - The award will be presented at Itron Inspire 2025, scheduled for October 24-30 in Orlando, Florida, with a nomination deadline of June 30, 2025 [1][5] - The nominated solutions should be in a pilot phase, deployed, or generating quantifiable outcomes, with successful integration with Itron's solutions being a key criterion [2] Company Overview - Itron is a global leader in energy and water management, providing critical infrastructure solutions to utilities and cities in over 100 countries [6] - The company offers a comprehensive portfolio that includes smart networks, software, services, meters, and sensors to help manage electricity, gas, and water resources [6] - Itron aims to enhance the quality of life, safety, and sustainability for millions globally through collaboration with its customers [6]

Core Viewpoint - Itron, Inc. has introduced the Solar Battery Access Point, a solar-powered device aimed at providing cost-effective and flexible networking solutions for water and gas utilities, addressing the challenges of traditional infrastructure [1][2]. Group 1: Product Features and Benefits - The Solar Battery AP eliminates the need for expensive tower-based or utility pole-mounted infrastructure, allowing utilities to utilize their own assets for mounting [2][6]. - It features a rechargeable power management system with an integrated solar panel, which generates the necessary power, thus avoiding costs associated with power drops and monthly bills [6]. - The device is designed for long-lasting performance, with an operational lifespan of up to 20 years in the field [6]. - It enhances connectivity by delivering a low-latency, battery-powered mesh network, which expands the network capabilities for gas and water utilities [6]. Group 2: Market Position and Future Outlook - The Solar Battery AP is set to be available in North America in the second half of 2025 and will be showcased at the American Gas Association Operations Conference [1]. - The introduction of this technology is expected to help utilities and municipalities improve the safety and reliability of critical services while creating new engagement opportunities with customers [3].

Core Insights - Itron Inc. reported non-GAAP EPS of $1.52 for Q1 2025, exceeding the Zacks Consensus Estimate by 16.9% and up from $1.24 in the prior-year quarter [1][3] - Revenues increased by 1% year over year to $607 million, but fell short of the Zacks Consensus Estimate of $614.3 million and management's guidance of $610-$620 million [1][2] - The company experienced mixed performance across its segments, with steady customer demand driven by grid modernization and automation [2][3] Revenue Breakdown - Product revenues were $523.1 million, accounting for 86.2% of total revenues, down 0.9% year over year, while service revenues rose 11.1% to $84 million [2] - Device Solutions segment generated $125.9 million, down 1% year over year, while Networked Solutions revenues decreased by 1% to $402.7 million [4][5] - Outcomes segment saw a 14% increase in revenues to $78.5 million, driven by higher recurring revenues and increased software license sales [5] Operating Performance - Gross margin improved to 35.8%, up 180 basis points year over year, attributed to a favorable product mix and operational efficiencies [6] - Non-GAAP operating income rose to $80.3 million from $67.3 million in the previous year, reflecting improved gross profit and reduced operating costs [6] Financial Position - As of March 31, 2025, cash and cash equivalents were $1.123 billion, up from $1.05 billion at the end of 2024, with net long-term debt reduced to $786.1 million [8] - Free cash flow reached $67 million, doubling from $34 million in the prior-year quarter, due to stronger earnings and better working capital management [9] Future Guidance - For Q2 2025, Itron expects revenues between $605 million and $615 million, with non-GAAP EPS anticipated in the range of $1.30-$1.40, indicating about 12% growth at the midpoint compared to the previous year [10]

Financial Performance - Total revenues for Q1 2025 were $607,151,000, a slight increase of 0.12% compared to $603,442,000 in Q1 2024[9] - Net income for Q1 2025 was $65,350,000, representing a 26.2% increase from $51,787,000 in Q1 2024[9] - Gross profit increased to $217,219,000 in Q1 2025, up from $205,379,000 in Q1 2024, reflecting a gross margin improvement[9] - Operating income rose to $76,213,000 in Q1 2025, compared to $62,800,000 in Q1 2024, marking a 21.4% increase[9] - The company reported a comprehensive income of $78,898,000 for Q1 2025, significantly higher than $40,879,000 in Q1 2024[11] - Operating cash flow for Q1 2025 was $72,117,000, compared to $41,308,000 in Q1 2024, indicating improved cash generation[19] - Net income available to common shareholders for the three months ended March 31, 2025, was $65.474 million, compared to $51.721 million for the same period in 2024, representing a year-over-year increase of 26.5%[30] - Basic earnings per share (EPS) increased to $1.44 for Q1 2025 from $1.13 in Q1 2024, reflecting a growth of 27.5%[30] - Non-GAAP net income attributable to Itron, Inc. was $70.1 million in Q1 2025, compared to $57.3 million in Q1 2024[137] - Adjusted EBITDA for Q1 2025 was $87.9 million, compared to $76.5 million in Q1 2024[137] Assets and Liabilities - Cash and cash equivalents at the end of Q1 2025 were $1,123,267,000, up from $1,051,237,000 at the end of 2024[13] - Total assets increased to $3,503,142,000 as of March 31, 2025, compared to $3,407,623,000 at the end of 2024[13] - Itron's total liabilities decreased to $1,994,063,000 as of March 31, 2025, down from $1,996,195,000 at the end of 2024[13] - Total debt as of March 31, 2025, stands at $1,265,000,000, with a current portion of $457,747,000 and long-term debt of $786,137,000[43] - The company remains in compliance with debt covenants under the 2018 credit facility as of March 31, 2025[45] Revenue Segments - Product revenues in the Device Solutions segment were $125,387,000 for Q1 2025, compared to $125,908,000 in Q1 2024, indicating a decrease of 0.41%[113] - The Networked Solutions segment generated revenues of $402,732,000 in Q1 2025, up from $381,305,000 in Q1 2024, reflecting an increase of 5.8%[113] - The Outcomes segment reported revenues of $78,548,000 in Q1 2025, compared to $69,174,000 in Q1 2024, representing a growth of 13.6%[113] Expenses - Research and development expenses for the consolidated company in Q1 2025 were $42,224,000, compared to $43,600,000 in Q1 2024, a decrease of 3.16%[113] - Total stock-based compensation expense for the three months ended March 31, 2025, was $17,257,000, up from $12,878,000 in 2024, representing a year-over-year increase of approximately 33.5%[68] - Operating expenses decreased by $1.6 million, or 1%, compared to Q1 2024[137] Cash Flow and Backlog - Free cash flow for Q1 2025 was $67.478 million, a 97.6% increase from $34.163 million in Q1 2024, driven by higher operating cash flow and reduced capital expenditures[173] - Total backlog reached $4.7 billion as of March 31, 2025, compared to $4.3 billion a year earlier[137] - Twelve-month backlog was $1.6 billion at March 31, 2025, down from $1.9 billion at March 31, 2024[137] Tax and Compliance - The company’s tax rate for the three months ended March 31, 2025, was 21%, consistent with the federal statutory rate of 21%[73] - The income tax provision for the three months ended March 31, 2025, was $16.929 million, compared to $13.429 million in 2024, maintaining a tax rate of 21%[151] Stock and Shareholder Activities - 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[93] - The company completed the repurchase of 971,534 shares under the 2023 Stock Repurchase Program for a total of $100 million at an average price of $102.93 per share in June 2024[94] Restructuring and Future Plans - Total expected restructuring costs for the 2023 Projects were $51,256,000, with costs recognized during the three months ended March 31, 2025, amounting to $50,174,000, reflecting a slight increase of 2.2%[87] - The company’s restructuring activities are expected to optimize global supply chain and manufacturing operations, with projects substantially complete as of March 31, 2025[86] Risk Management - The company is focused on risk management strategies to hedge against foreign currency and interest rate risks, using derivative financial instruments[204] - As of March 31, 2025, the company had no outstanding variable rate debt, mitigating interest rate risk[205] - The company entered into 32 foreign exchange forward contracts to manage currency exposure, with notional amounts ranging from $112,486 thousand to $23.5 million[207]