Core Insights - Itron Inc. (ITRI) reported non-GAAP EPS of $2.46 for Q4 2025, exceeding Zacks Consensus Estimate by 12.3% and up from $1.35 in the prior-year quarter, driven by higher non-GAAP operating income and a tax benefit [1][2] Financial Performance - Quarterly revenues were $572 million, a 7% decline year over year, but above the guidance range of $555-$565 million and the Zacks Consensus Estimate of $561.8 million [2] - Full-year revenues totaled $2.4 billion, down 3% [2] - Product revenues were $474.3 million (83% of total revenues), down 10.9% year over year, while service revenues increased by 21% to $97.3 million (17%) [4] Strategic Acquisitions - Itron acquired Urbint and Locusview to enhance its utility-resiliency strategy, leading to the launch of a new Resiliency Solutions reporting segment [3] - The new segment is expected to contribute $65-$70 million in revenues for 2026 with approximately 70% gross margins [4] Bookings and Backlog - Itron's bookings reached $737 million for the quarter, contributing to full-year bookings of $2.1 billion, with a backlog of $4.5 billion at the end of the quarter [5] - The Outcomes segment backlog hit a record high due to sustained demand for Grid Edge Intelligence [5] Stock Performance - Despite mixed results, ITRI's shares rose 7.9% to close at $96.43 on Feb. 17, with a further 2% increase in pre-market trading [6] Segment Performance - Device Solutions revenues fell 3% to $104.8 million, Networked Solutions revenues decreased 15% to $352 million, while Outcomes revenues rose 23% to $111.8 million [10][11] - Resiliency Solutions generated $3 million in revenues, reflecting a partial-quarter contribution from the Urbint acquisition [11] Operating Metrics - Gross margin improved to 40.7%, a 580-basis point increase year over year, attributed to a favorable product and customer mix [12] - Non-GAAP operating income rose to $90.6 million from $70.6 million in the prior year, with non-GAAP operating margins expanding to 15.9% [12] Cash Flow and Balance Sheet - Cash and cash equivalents were $1.02 billion as of Dec. 31, 2025, down from $1.3 billion due to the Urbint acquisition and share buybacks [14] - Itron generated $119 million in cash from operations and $112 million in free cash flow during the quarter, up from $70 million in the previous year [15] Financial Guidance - For Q1 2026, Itron expects revenues between $565 million and $575 million, indicating a 6% year-over-year decline at the midpoint, with non-GAAP EPS anticipated in the range of $1.20-$1.30 [16] - For the full year 2026, revenues are projected between $2.35 billion and $2.45 billion, suggesting a 1% increase year over year at the midpoint, with non-GAAP EPS estimated between $5.75 and $6.25 [17]