Itron(ITRI) ZACKS·2025-05-02 11:25Core 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]