Itron, Inc. (ITRI) is partnering with Norwegian utility provider Norgesnett to roll out the first edge computing deployment in the Nordic region. Utilizing Itron’s Grid Edge Intelligence portfolio, which features distributed intelligence (DI)-enabled smart meters, this collaboration marks a major milestone in modernizing the electricity grid.As part of Norgesnett’s Advanced Metering Infrastructure (AMI) strategy, the utility will use DI to boost visibility and control across the distribution system—from sub ...

Core Viewpoint - Itron Inc (ITRI) has demonstrated resilience in a volatile market, achieving a 16.3% gain over the past year, driven by strong demand for its solutions related to grid resiliency, capacity, safety, and automation [1][6]. Performance Summary - ITRI has outperformed the Electronic Test Equipment industry's decline of 8.5%, as well as the Zacks Computer and Technology sector and the S&P 500 composite's growth of 3.8% and 8.2%, respectively [2]. - The stock closed at $104.76, which is 16% lower than its 52-week high of $124.90, raising questions about potential buying opportunities [5]. Demand and Growth Drivers - Steady market demand and strong operational performance are key growth drivers for Itron [6]. - The Grid Edge Intelligence platform is experiencing momentum, fueled by data center demand, reindustrialization, electrification of transportation and homes, and automation of water infrastructure [7]. - Itron's total backlog at the end of Q4 2024 was $4.7 billion, with 2024 bookings of $2.7 billion, resulting in a book-to-bill ratio of 1:11 [8]. Revenue Guidance - Itron anticipates 2025 revenues to be between $2.4 billion and $2.5 billion, projecting total revenues of $2,445.1 million for 2025, which is flat year-over-year at the midpoint [9]. Estimate Revisions - Analysts show bullish sentiment towards ITRI, as indicated by solid estimate revision activity, with significant increases in consensus estimates over the past 60 days [10]. Product Launches - Frequent product launches, such as IntelliFLEX and CityEdge, position Itron to capture market share by addressing changing market demands [11][12]. Operational Efficiency - Itron's gross margin improved to 34.9%, expanding by 90 basis points year-over-year due to enhanced operational efficiencies [13]. Valuation - ITRI presents an attractive investment opportunity with a forward 12-month price-to-earnings ratio of 18.82X, slightly below the industry average of 21.48X [14]. Investment Outlook - Increasing business pipeline activities and favorable macro trends, combined with a discounted valuation and robust estimate revisions, make ITRI an appealing investment opportunity [17].