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].

Core Insights - Itron, Inc. has entered a joint marketing agreement with Current Lighting Solutions to enhance smart streetlighting systems through the integration of Itron's CityEdge portfolio and Current's LED luminaires [1][4][8] Group 1: Joint Marketing Agreement - The collaboration aims to transform the deployment and operation of streetlighting systems, providing benefits beyond mere illumination [1] - Itron's CityEdge portfolio combines intelligent control technologies with Current's high-efficiency LED products, including the Evolve Roadway line [1][5] Group 2: CityEdge Portfolio - Launched in October 2024, CityEdge is an open platform that integrates IoT technologies to tackle urban challenges in areas such as smart lighting, traffic management, and sustainability [2] - The platform allows cities to manage streetlight infrastructure with precise control, enabling features like dimming, remote monitoring, and integration with various sensors [4][8] Group 3: Benefits of LED Technology - LED lighting technology offers higher lumens per watt, longer lifespan, and reduced maintenance needs, but also introduces challenges like over-illumination and light pollution [3] - Itron's intelligent controls help manage these challenges by allowing dynamic adjustments to brightness based on actual needs [3][4] Group 4: Market Demand and Growth Drivers - Itron is experiencing robust demand for its grid edge intelligence platform, driven by factors such as data center demand, reindustrialization, and electrification trends [7][8] - The company has shipped over 15.3 million distributed intelligence-capable endpoints, highlighting the critical role of its technology in building flexible infrastructure [8] Group 5: Financial Outlook - Itron has revised its 2025 revenue projections to $2.35-$2.4 billion, down from a previous estimate of $2.4-$2.5 billion, reflecting near-term demand challenges [11] - The company anticipates third-quarter revenues between $570 million and $585 million, indicating a 6% year-over-year decline [11]

Core Insights - Itron, Inc. released its 2024 Corporate Sustainability Report, emphasizing its commitment to sustainability and the positive impact of its solutions on customers and communities [1][2][3] Sustainability Strategy - The company completed its first enterprise-wide double materiality assessment in 2024, aligning sustainability priorities with stakeholder expectations and regulatory requirements [2][4] - Itron's ESG strategy is integrated into its operations, with oversight from the board of directors [3] Environmental Impact - Itron's solutions helped customers avoid 7.5 million metric tons of greenhouse gas emissions in 2024, driven by improved operational efficiency and consumer engagement [4] - The company achieved 100% ISO 14001 certification across all manufacturing facilities and reduced Scope 1 and 2 emissions by over 50% since 2019 [4] Community and Employee Engagement - Itron was recognized as one of America's Greatest Workplaces, with nearly 95% of employees expressing intent to stay with the company [4] - The company invested over $1 million in corporate philanthropy, educational outreach, and volunteerism [4] Ethical Conduct and Governance - In 2024, 100% of employees completed the Code of Conduct training, and nearly 90% of the Board remained independent [4] - Itron received an "AA" MSCI rating and a "Low Risk" designation from Sustainalytics, reflecting its strong ESG profile and values-driven leadership [4]