Core Insights - Itron has achieved a significant milestone with the shipment of its 3 millionth Intelis gas meter, received by Peoples Natural Gas, the largest natural gas distribution company in Pennsylvania [1][2]. Company Overview - Itron is a global leader in energy, water, smart city, IIoT, and intelligent infrastructure services, focusing on building innovative systems and creating efficiencies for utilities and cities [3]. Product Features - The Intelis gas meter includes advanced safety features such as automatic valve closure during high pressure, high flow, or high temperature events, enhancing safety for users [5]. - It offers remote shut-off capabilities for safety events, move-outs, or line maintenance, improving operational efficiency [5]. - The meter supports both Automated Meter Reading (AMR) and Advanced Metering Infrastructure (AMI), allowing utilities to transition at their own pace [5]. - Itron provides advanced software for monitoring safety events and alarms generated by the Intelis gas meters, offering real-time visibility for gas distribution management [5]. - The Intelis gas meter is noted as the lightest residential gas meter in North America, weighing 4.35 pounds, which aids in installation and reduces carbon emissions [5]. Strategic Partnership - Peoples Natural Gas has been collaborating with Itron for nearly 30 years, emphasizing the importance of the Intelis gas meters in improving customer service and safety [2].

Core Insights - Itron reported revenue of $607.15 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.6% and an EPS of $1.52, up from $1.24 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $614.27 million by 1.16%, while the EPS exceeded the consensus estimate of $1.30 by 16.92% [1] Revenue Breakdown - Revenue from Networked Solutions was $402.73 million, below the average estimate of $416.08 million, representing a year-over-year decline of 1.2% [4] - Revenue from Outcomes reached $78.55 million, slightly below the average estimate of $79.19 million, but showed a year-over-year increase of 13.6% [4] - Revenue from Device Solutions was $125.87 million, exceeding the average estimate of $119.66 million, with a year-over-year decrease of 0.7% [4] - Total Product Revenue was reported at $523.14 million, compared to the average estimate of $536.93 million [4] Service Revenue Insights - Service Revenue from Device Solutions was $0.48 million, significantly below the average estimate of $1.25 million [4] - Service Revenue from Networked Solutions was $28.21 million, surpassing the average estimate of $25.48 million [4] - Service Revenue from Outcomes was $55.32 million, exceeding the average estimate of $50.30 million [4] - Total Service Revenue was $84.01 million, above the average estimate of $77.03 million [4] Product Revenue Details - Product Revenue from Networked Solutions was $374.52 million, below the average estimate of $391.22 million [4] - Product Revenue from Device Solutions was $125.39 million, exceeding the average estimate of $117.60 million [4] - Product Revenue from Outcomes was $23.23 million, below the average estimate of $28.11 million [4] Profitability Metrics - Gross Profit from Device Solutions was $37.75 million, significantly higher than the average estimate of $31.19 million [4] Stock Performance - Itron's shares have returned +3.7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $607 million, a 1% increase year over year, with adjusted EBITDA of $88 million and non-GAAP earnings per share of $1.52, reflecting a 22% increase from the previous year [6][13][14] - Free cash flow improved to $67 million compared to $34 million in the prior year, driven by operational earnings growth and improved working capital [15] Business Line Data and Key Metrics Changes - Device Solutions revenue decreased by 1% year over year to $126 million, but increased by 2% on a constant currency basis, with gross margin at 30% and operating margin at 24.2% [15][17] - Network Solutions revenue was $403 million, with a gross margin of 36.9% and operating margin of 28.8%, showing a slight decrease in gross margin due to product mix [17] - Outcomes revenue grew by 14% year over year to $79 million, with gross margin at 39.2% and operating margin at 18.2%, benefiting from a higher margin revenue mix [18] Market Data and Key Metrics Changes - Bookings for the quarter were in line with expectations, resulting in a book-to-bill ratio of 0.9, with a backlog of $4.7 billion, primarily driven by Network Solutions and Outcomes segments [8][9] Company Strategy and Development Direction - The company is focused on optimizing its factory footprint, strengthening supply chain resilience, and growing recurring revenue to capitalize on future opportunities [20] - Itron aims to enhance its industry leadership through innovative solutions that address environmental, operational, and consumer challenges faced by utilities and cities [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic and trade policy uncertainty but expressed confidence in the company's strategic focus and operational execution [20] - The company expects Q2 revenue to be in the range of $605 million to $615 million, with non-GAAP earnings per share anticipated to grow approximately 12% year over year [19] Other Important Information - The estimated EBITDA impact from tariffs for the year is approximately $15 million, with the majority of the impact expected in the latter half of the year [11][62] - The company has a strong liquidity position, with total debt at $1.265 billion and cash and equivalents at $1.1 billion [14] Q&A Session Summary Question: Impact of tariffs on guidance - Management indicated it is premature to update full-year guidance but noted strong Q1 performance and a positive outlook for Q2 [25][26] Question: Device Solutions segment margins - Management expressed satisfaction with the current margins but noted variability due to seasonal factors and product mix [28][29] Question: Backlog and coverage for the year - Management stated that the demand environment remains strong and the outlook is positive, despite potential macroeconomic uncertainties [32][33] Question: Regulatory environment for software capitalization - Management highlighted that the regulatory environment is constructive, with various mechanisms allowing software purchases to be included in rate bases [39] Question: Tariff mitigation efforts - Management clarified that the $15 million estimate includes mitigation measures and is based on current tariff protocols [43][62] Question: M&A and capital deployment - The company is actively seeking acquisitions to enhance software content and drive growth, prioritizing this over share buybacks [71] Question: Recurring revenue mix in Outcomes - Management reported approximately 70% recurring revenue in Q1, with a goal of reaching 80% in the future [76]

Core Insights - Itron reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.30 per share, and showing an increase from $1.24 per share a year ago, resulting in an earnings surprise of 16.92% [1] - The company posted revenues of $607.15 million for the quarter, slightly missing the Zacks Consensus Estimate by 1.16%, but showing a year-over-year increase from $603.44 million [2] - Itron has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [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 its immediate price movement based on the latest earnings numbers and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.27, with expected revenues of $602.19 million, and for the current fiscal year, the EPS estimate is $5.40 on revenues of $2.46 billion [7] Industry Context - Itron operates within the Zacks Electronics - Testing Equipment industry, which is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, which could positively influence Itron's stock performance [8]

Financial Performance - Revenue reached $607 million, a 1% increase year-over-year[4, 9] - Adjusted EBITDA was $88 million[4] - Non-GAAP diluted EPS stood at $1.52[4] - Free cash flow amounted to $67 million[4] - Gross margin increased by 180 bps to 35.8%[9] - Non-GAAP operating margin increased by 200 bps to 13.2%[10] Bookings and Backlog - Q1 2025 bookings totaled $530 million[8] - The book-to-bill ratio was 0.9[8] - Ending backlog reached $4.7 billion[8] Segment Performance - Outcomes segment revenue increased by 14%[26, 28]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $607 million, a 1% increase year over year, with adjusted EBITDA of $88 million and non-GAAP earnings per share of $1.52 [5][12] - Free cash flow improved to $67 million from $34 million a year ago, reflecting strong operational earnings growth [14] - GAAP net income was $65 million or $1.42 per diluted share, compared to $52 million or $1.12 per share in the prior year [13] Business Segment Data and Key Metrics Changes - Device Solutions revenue decreased by 1% year over year to $126 million, but increased by 2% on a constant currency basis, with gross margin at 30% and operating margin at 24.2% [14][16] - Network Solutions revenue was $403 million, with a gross margin of 36.9% and operating margin of 28.8%, showing a slight decrease in gross margin due to product mix [16] - Outcomes revenue grew by 14% year over year to $79 million, with gross margin at 39.2% and operating margin at 18.2% [17] Market Data and Key Metrics Changes - Bookings for the quarter resulted in a book-to-bill ratio of 0.9, with a backlog of $4.7 billion, remaining near record levels [6][7] - Customer demand is driven by the adoption of Itron's Great Edge Intelligence platform, enhancing distribution capacity and infrastructure agility [5][6] Company Strategy and Development Direction - The company is focused on optimizing its factory footprint, strengthening supply chain resilience, and growing recurring revenue to capitalize on future opportunities [19][20] - Itron aims to maintain its industry leadership through the deployment of innovative solutions, positioning itself as a partner of choice for utilities and cities [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic and trade policy uncertainty but expressed confidence in navigating near-term challenges [19] - The company expects Q2 revenue to be in the range of $605 million to $615 million, with non-GAAP earnings per share anticipated to grow approximately 12% year over year [18] Other Important Information - The estimated EBITDA impact from tariffs for the year is approximately $15 million, net of mitigation measures [10][42] - The regulatory environment remains constructive for customers, with various mechanisms allowing software purchases to be included in rate bases [38] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management stated it is premature to update full year guidance but noted strong performance in Q1 and expectations for Q2 [24][26] Question: Device Solutions segment margins - Management expressed satisfaction with current margins but indicated variability may occur due to seasonal factors [28][29] Question: Twelve-month backlog removal - Management clarified that the removal was to avoid confusion and stated that the demand environment remains positive [32][33] Question: Regulatory environment for software capitalization - Management noted that the regulatory environment is supportive, with various mechanisms in place for software purchases [36][38] Question: Tariff mitigation efforts - Management explained that the $15 million estimate includes current tariffs and mitigation measures, with most impacts expected in the latter half of the year [62] Question: M&A activity and capital deployment - The priority remains finding acquisitions that enhance software content, with ongoing activity in the M&A space [71][72] Question: Recurring revenue mix in Outcomes segment - Management reported approximately 70% recurring revenue in Q1, with a goal of reaching closer to 80% in the future [75]

Revenue Performance - Total first quarter revenue increased by 1% to $607 million, including a catch-up of previously constrained revenue from Q1 2024[3] - Device Solutions revenue decreased by 1%, while Networked Solutions revenue also decreased by 1% due to timing of shipments and project deployments[4] - Outcomes revenue increased by 14%, driven by higher recurring revenue and software licenses[4] Profitability Metrics - Gross margin improved to 35.8%, an increase of 180 basis points from the prior year, attributed to product mix and operational efficiencies[5] - GAAP operating income rose to $76 million, a $13 million increase from the prior year, due to higher gross profit and lower operating expenses[6] - Net income attributable to Itron, Inc. was $65 million, or $1.42 per diluted share, reflecting a $14 million increase compared to the previous year[7] - Non-GAAP operating income rose to $80,269 in Q1 2025, up from $67,325 in Q1 2024, reflecting a growth of 19.3%[42] - GAAP net income attributable to Itron, Inc. increased to $65,474 from $51,721, representing a growth of 26.5%[44] - Adjusted EBITDA rose to $87,931, up from $76,480, reflecting an increase of 15.5%[44] Cash Flow and Liquidity - Free cash flow increased to $67 million, up $33 million from the prior year, primarily due to higher earnings and interest income[10] - Net cash provided by operating activities was $72,117 in Q1 2025, up from $41,308 in Q1 2024, indicating a growth of 74.7%[29] - Free Cash Flow improved significantly to $67,478 compared to $34,163, marking an increase of 97.5%[44] - Cash and cash equivalents at the end of Q1 2025 were $1,123,267, significantly up from $300,606 at the end of Q1 2024[29] Balance Sheet Highlights - Total assets increased to $3,503,142 in Q1 2025, compared to $3,407,623 in Q1 2024, marking a growth of 2.8%[26] - Total liabilities decreased slightly to $1,994,063 in Q1 2025 from $1,996,195 in Q1 2024[26] - The total equity of Itron, Inc. increased to $1,509,079 in Q1 2025 from $1,411,428 in Q1 2024, showing a growth of 6.9%[26] Future Outlook - The outlook for Q2 2025 includes expected revenue between $605 million and $615 million, and non-GAAP diluted EPS between $1.30 and $1.40[15] Operational Changes - Interest income decreased to $(11,710) from $(3,846), showing a decline of 204.5%[44] - Interest expense increased to $5,593 from $1,893, which is an increase of 195.5%[44] - Income tax provision rose to $16,929 from $13,429, reflecting an increase of 25.5%[44] - Depreciation and amortization slightly decreased to $12,068 from $12,744, a decline of 5.3%[44] - Restructuring costs changed from $198 to $(553), indicating a shift in strategy[44] - Acquisition and integration costs decreased to $51 from $318, showing a reduction of 83.9%[44] Customer Demand and Market Position - Itron's leadership in grid edge intelligence solutions continues to drive customer demand for new technologies[2] Backlog and Bookings - Total backlog at the end of the quarter was $4.7 billion, compared to $4.3 billion in the prior year, with bookings totaling $530 million[11] Quarterly Comparison - Net income for Q1 2025 was $65,350, an increase of 26.2% compared to $51,787 in Q1 2024[28] - Non-GAAP diluted EPS increased to $1.52 in Q1 2025, compared to $1.24 in Q1 2024, representing a growth of 22.6%[42] - Non-GAAP operating expenses decreased to $136,950 in Q1 2025 from $138,054 in Q1 2024, a reduction of 0.8%[42] - The company reported an increase in unearned revenue to $187,812 in Q1 2025, compared to $150,720 in Q1 2024, reflecting a growth of 24.6%[26]

Core Insights - Itron, Inc. reported financial results for Q1 2025, showing margin expansion and earnings growth ahead of expectations due to a favorable product mix and strong execution [1][2][4] Revenue Performance - Total revenue for Q1 2025 increased by 1% to $607 million, including a catch-up of previously constrained revenue from Q1 2024 [2] - Device Solutions revenue decreased by 1%, but increased by 2% in constant currency, driven by higher smart water sales offset by lower legacy electricity sales [2] - Networked Solutions revenue also decreased by 1% due to shipment timing and project deployment delays [3] - Outcomes revenue increased by 14%, attributed to higher recurring revenue and software licenses [3] Profitability Metrics - Gross margin for Q1 2025 was 35.8%, an increase of 180 basis points from the previous year, due to product mix and operational efficiencies [4] - GAAP operating income rose to $76 million, a $13 million increase from the prior year, while non-GAAP operating income also increased by $13 million to $80 million [5] Net Income and Earnings Per Share - Net income attributable to Itron, Inc. for the quarter was $65 million, or $1.42 per diluted share, compared to $52 million, or $1.12 per diluted share in 2024 [6] - Non-GAAP net income was $70 million, or $1.52 per diluted share, up from $57 million, or $1.24 per diluted share in the previous year [7] Cash Flow and Backlog - Net cash provided by operating activities was $72 million, compared to $41 million in the prior year, while free cash flow increased to $67 million from $34 million [8][9] - Total backlog at the end of the quarter was $4.7 billion, up from $4.3 billion in the prior year, with bookings totaling $530 million [10]

Core Viewpoint - Itron, Inc. is expected to report first-quarter 2025 earnings on May 1, with anticipated revenues between $610 million and $620 million, reflecting a year-over-year increase of 1.8% [1][2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $614.3 million, while non-GAAP earnings per share are projected to be between $1.25 and $1.35, with a consensus of $1.30 per share [1][2] - The company reported earnings of $1.24 per share in the same quarter last year [2] Recent Performance and Trends - Itron has beaten the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 40.8% [2] - The stock has increased by 18.4% over the past year, contrasting with a 7.1% decline in the Zacks Electronics-Testing Equipment industry [2] Factors Influencing Q1 Earnings - Strong customer demand, the growing uptake of the grid edge intelligence platform, and robust operational execution are expected to support Itron's performance [3] - The rollout of smart meters and broader adoption of IoT solutions in utilities are identified as positive trends, while potential slowdowns in project deployment or budget constraints may pose challenges [3] Business Segments Performance - Revenue expectations for the three business segments are as follows: Device Solutions at $127.5 million (up 0.6%), Outcomes at $412 million (up 1.1%), and Networked Solutions at $72.6 million (up 4.9%) year-over-year [7] Strategic Developments - Itron has introduced IntelliFLEX, a grid-edge Distributed Energy Resource Management System, aimed at optimizing utility operations and enhancing grid capacity by up to 20% [8] - The company secured $2.7 billion in orders in 2024, with a book-to-bill ratio of 1.11, primarily from grid-edge intelligence projects [5] Recent Collaborations - Itron partnered with Norgesnett for edge computing deployment in the Nordic region, marking a significant step in modernizing the electricity grid [11] - Collaborations with Tesla and Xcel Energy aim to deploy an advanced virtual power plant in Colorado, enhancing the management of distributed energy resources [12] - A partnership with Microsoft focuses on integrating AI technology to improve operational efficiency for utilities [13] - Collaboration with NVIDIA aims to deliver AI-powered solutions for grid resilience and efficiency [14]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Itron (ITRI) .Itron currently has an average brokerage recommendation (ABR) of 1.46, on a scale ...