Itron(US:ITRI) ZACKS·2025-10-31 13:51Core Insights - Itron, Inc. (ITRI) reported non-GAAP EPS of $1.54 for Q3 2025, exceeding the Zacks Consensus Estimate by 4.1%, but down 16.3% year-over-year [1][9] - Revenue for the quarter was $581.6 million, a decline from $615.5 million in the prior-year quarter, attributed to portfolio optimization and project timing [2][9] - The company has raised its non-GAAP EPS outlook for 2025 to a range of $6.84 to $6.94, up from previous estimates of $6.00 to $6.20 [5] Financial Performance - Revenue decreased by 5.5% year-over-year, with product revenues at $494.3 million (85% of total revenues) down 8.2%, while service revenues increased by 13.1% to $87.3 million (15%) [5][9] - Gross margin improved to 37.7%, a 360-basis point increase year-over-year, driven by a favorable product and customer mix [11] - Non-GAAP operating income reached a record high of $89 million, marking a 12.7% year-over-year increase [11] Backlog and Bookings - Itron ended the quarter with a record backlog of $4.3 billion, up from $4 billion a year ago, with third-quarter bookings of $380 million [6][9] Segment Performance - Device Solutions segment revenue fell 16% to $103.1 million, impacted by declines in legacy EMEA electricity products and lower water volumes in North America [7] - Networked Solutions revenue dipped 6% to $365.4 million, primarily due to project implementation timing [10] - Outcomes segment revenue rose 11% to $25.8 million, driven by growth in recurring revenue [10] Outlook - For Q4 2025, Itron expects revenues between $555 million and $565 million, representing a 9% decline year-over-year at the midpoint, with non-GAAP EPS anticipated in the range of $2.15 to $2.25 [14] Balance Sheet and Cash Flow - As of September 30, 2025, cash and cash equivalents totaled $1.331 billion, with net long-term debt at $787.9 million [13] - The company generated strong cash flow, with net cash from operations totaling $118 million and free cash flow of $113 million [13]