Itron(US:ITRI)2026-02-17 13:35Revenue Performance - Total revenue for Q4 2025 was $572 million, a decrease of 7% compared to $613 million in Q4 2024, primarily due to portfolio optimization and project deployment timing [2]. - Outcomes revenue increased by 23% in Q4 2025, reaching a record level, driven by increased delivery services and recurring revenue [5]. - Total revenues for the three months ended December 31, 2025, were $571,657,000, a decrease of 6.7% compared to $612,864,000 for the same period in 2024 [27]. - Total revenues for the year ended December 31, 2025, reached $2.37 billion, a decrease from $2.44 billion in 2024, reflecting a decline of 2.7% [50]. Income and Earnings - GAAP net income for Q4 2025 was $102 million, or $2.21 per diluted share, compared to $58 million, or $1.26 per diluted share in Q4 2024, reflecting a significant increase due to higher operating income and a tax benefit [10]. - Non-GAAP net income for Q4 2025 was $113 million, or $2.46 per diluted share, up from $62 million, or $1.35 per diluted share in Q4 2024, driven by higher non-GAAP operating income [11]. - Net income for the year ended December 31, 2025, was $303,335,000, representing a 25.8% increase from $241,124,000 in 2024 [31]. - GAAP net income for the year ended December 31, 2025, was $301.06 million, compared to $239.10 million in 2024, representing a growth of 25.9% [47]. - The company reported a diluted EPS of $2.46 for Q4 2025, compared to $1.35 in Q4 2024, indicating a year-over-year increase of 82.2% [47]. Cash Flow and Financial Position - Free cash flow for Q4 2025 was $112 million, an increase of $41 million from $70 million in Q4 2024, primarily due to improved working capital and higher earnings [12]. - Free cash flow for Q4 2025 was $111.51 million, compared to $70.17 million in Q4 2024, indicating a significant increase of 58.8% [48]. - Cash and cash equivalents at the end of the period decreased to $1,020,397,000 from $1,051,237,000 at the end of 2024 [32]. Operational Metrics - Gross margin for Q4 2025 was 40.5%, an increase of 560 basis points from the prior year, attributed to customer and product mix [6]. - Adjusted gross profit for Q4 2025 was $232.81 million, compared to $213.88 million in Q4 2024, reflecting an increase of 8.8% [49]. - Adjusted gross profit for the total company increased to $232,814,000 for the three months ended December 31, 2025, up 8.8% from $213,880,000 in 2024 [27]. - Total operating expenses for Q4 2025 were $142.18 million, slightly down from $143.32 million in Q4 2024, a decrease of 0.8% [46]. Backlog and Future Outlook - Total backlog at the end of Q4 2025 was $4.5 billion, down from $4.7 billion in the prior year, with bookings totaling $0.7 billion for the quarter and $2.1 billion for the full year [13]. - The company expects Q1 2026 revenue to be between $565 million and $575 million, and full year 2026 revenue to be between $2.35 billion and $2.45 billion [16]. Strategic Initiatives - The company announced the acquisition of Locusview for $525 million, which closed in January 2026, aimed at enhancing AI-driven software solutions and recurring revenue [14]. - The company plans to continue focusing on strategic initiatives and acquisitions to enhance market presence and operational efficiency [35].