Itron Announces Second Quarter 2025 Financial Results

Core Insights - Itron, Inc. reported solid second quarter results with record levels of margin, profitability, and cash flow despite macroeconomic uncertainties [1][2] - Total revenue for the second quarter was $607 million, slightly down from $609 million in the prior year, reflecting a catch-up of previously constrained revenue [2][8] - The company experienced a 5% decrease in Device Solutions revenue, while Outcomes revenue increased by 9% due to higher recurring revenue and software licenses [3][8] Revenue Breakdown - Device Solutions revenue decreased by 5%, or 8% in constant currency, primarily due to lower legacy electricity product sales [3] - Networked Solutions revenue saw a 1% decrease compared to the second quarter of 2024, attributed to the timing of shipments and project deployments [3] - Outcomes revenue increased by 9%, driven by increased recurring revenue and software licenses [3] Profitability Metrics - Gross margin for the second quarter was 36.9%, an increase of 230 basis points from the prior year, attributed to product and customer mix [4] - GAAP operating income rose to $76 million, a $12 million increase from the prior year, while non-GAAP operating income increased by $13 million to $82 million [5] - Net income attributable to Itron, Inc. was $68 million, or $1.47 per diluted share, compared to $51 million, or $1.10 per diluted share in 2024 [6] Cash Flow and Backlog - Net cash provided by operating activities was $97 million, up from $52 million in the prior year, with free cash flow increasing to $91 million from $45 million [8][9] - Total backlog at the end of the quarter was $4.5 billion, compared to $4.1 billion in the prior year, with bookings totaling $454 million [10] Outlook - The company updated its outlook for the full year 2025, projecting revenue between $2.35 billion and $2.4 billion and non-GAAP diluted EPS between $6.00 and $6.20 [14]