Itron (ITRI) investor relations material

Company overview and industry context

• Provides technology and solutions for utilities globally, serving 8,000 customers with a focus on electricity, gas, and water sectors.

• Latest technology enables application downloads to field endpoints, enhancing utility problem-solving.

• Utilities face aging infrastructure, increased environmental pressures, and the need for grid modernization.

• Grid edge intelligence platform offers robust IoT networks for real-time monitoring and proactive maintenance.

Financial performance and outlook

• Profitability outlook revised upward by 13% at midpoint year-over-year, while revenue guidance was reduced slightly for caution.

• $4.5 billion backlog provides 3-4 years of revenue visibility, with project timing variability due to customer constraints.

• No project cancellations; revenue timing shifts are due to customer-specific factors like labor and capital constraints.

• Growth from 2024 to 2025 depends on backlog conversion and new bookings in the year's second half.

• Confident in achieving 2027 growth targets, with margin and free cash flow already tracking ahead of expectations.

Market trends and customer demand

• Utility CapEx is increasing, with distribution spending growing faster than transmission or generation.

• Project timing volatility is a longstanding industry feature, now heightened by regulatory scrutiny and IT project dependencies.

• Regulatory approvals are more complex but remain constructive, with rate cases being approved and returns averaging 9.8%.

• Federal policy shifts, such as IIJA funding, are second-order effects; funding flows slowly but steadily.