Itron Announces Second Quarter 2024 Financial Results

Core Insights - Itron, Inc. reported strong financial results for Q2 2024, with revenue of $609 million, a 13% increase compared to Q2 2023, driven by operational execution and revenue conversion [1][2] - The company achieved a gross profit of $210 million, reflecting a 21% increase year-over-year, and a gross margin of 34.6%, up 250 basis points from the previous year [1][3] - Net income attributable to Itron, Inc. was $51 million, or $1.10 per diluted share, compared to $24 million, or $0.53 per diluted share in the same quarter last year [5][6] Financial Performance - Total revenue for Q2 2024 was $609 million, up 13% from $541 million in Q2 2023, attributed to strong operational execution and the conversion of previously constrained revenue [2][3] - Device Solutions revenue increased by 5%, or 6% in constant currency, primarily due to growth in smart water sales [3] - Networked Solutions revenue rose by 14%, driven by ongoing and new project deployments [3] - Outcomes revenue grew by 16%, mainly due to an increase in recurring revenue and services [3] Profitability Metrics - Gross profit for the quarter was $210 million, with a gross margin of 34.6%, an increase of 250 basis points from the prior year [1][3] - GAAP operating income was $65 million, a $30 million increase from the previous year, while non-GAAP operating income was $69 million, up $28 million [4] - Adjusted EBITDA reached $77 million, reflecting a 56% increase year-over-year [1] Cash Flow and Backlog - Free cash flow for Q2 2024 was $45 million, an increase of $9 million from $36 million in Q2 2023 [1][7] - Net cash provided by operating activities was $52 million, compared to $42 million in the prior year [7] - Total backlog at the end of the quarter was $4.1 billion, down from $4.4 billion in the prior year, with bookings totaling $447 million [8] Outlook - For Q3 2024, Itron expects revenue between $590 million and $600 million and non-GAAP diluted EPS between $1.10 and $1.20 [9] - The full-year 2024 revenue guidance has been updated to between $2.385 billion and $2.415 billion, an increase from the previous guidance of $2.275 billion to $2.375 billion [9]