Itron(ITRI)2025-05-01 20:21Financial 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]