Itron Announces Third Quarter 2025 Financial Results

Core Insights - Itron, Inc. reported third quarter financial results for 2025, highlighting record margins, profitability, and cash flow despite a decrease in total revenue compared to the previous year [1][2]. Financial Performance - Total revenue for the third quarter was $582 million, down from $615 million in the prior year, primarily due to portfolio optimization and project deployment timing [2]. - Device Solutions revenue decreased by 16%, or 19% in constant currency, attributed to lower legacy electricity product sales in EMEA and reduced North American water volumes [3]. - Networked Solutions revenue fell by 6% due to project deployment timing, while Outcomes revenue increased by 11%, or 10% in constant currency, driven by higher recurring revenue [3]. Profitability Metrics - Gross margin improved to 37.7%, an increase of 360 basis points from the previous year, due to favorable customer and product mix [4]. - GAAP operating income rose to $82 million, an increase of $8 million from the prior year, while non-GAAP operating income increased by $10 million to $89 million, both driven by higher gross profit [5]. Net Income and Earnings - Net income attributable to Itron, Inc. was $66 million, or $1.41 per diluted share, down from $78 million, or $1.70 per diluted share in 2024, primarily due to higher GAAP income tax expense [6]. - Non-GAAP net income was $72 million, or $1.54 per diluted share, compared to $84 million, or $1.84 per diluted share in the previous year, also impacted by higher non-GAAP income tax expense [7]. Cash Flow and Backlog - Net cash provided by operating activities was $118 million, significantly up from $65 million in the prior year, while free cash flow increased to $113 million from $59 million [8][9]. - Total backlog at the end of the quarter was $4.3 billion, compared to $4.0 billion in the prior year, with bookings totaling $380 million for the quarter [10]. Acquisition Activity - Itron announced the acquisition of Urbint, Inc. for $325 million, expected to close in the fourth quarter of 2025, which will be funded through cash on hand [11].