Itron (ITRI) investor relations material

Executive summary

• Q3 2025 revenue was $582 million, down 5% year-over-year, with record gross margin, adjusted EBITDA of $97 million, non-GAAP EPS of $1.54, and free cash flow of $113 million.

• Bookings for Q3 were $380 million, with a total backlog of $4.3 billion; book-to-bill ratio was 0.65.

• Customers are extending project deployment schedules due to regulatory scrutiny and cost sensitivity, but no project cancellations or loss of customer interest observed.

• Announced $325 million all-cash acquisition of Urbint, Inc., a SaaS provider for utilities, expected to close in Q4 2025.

• Outcomes segment recurring revenue and backlog grew, reflecting adaptation to market dynamics.

Financial highlights

• Gross margin reached a record 37.7%, up 360 basis points year-over-year, driven by favorable customer and product mix.

• GAAP net income was $66 million ($1.41 per share), down from $78 million ($1.70 per share) last year due to higher tax expense.

• Non-GAAP operating income was $89 million (15.3% of revenue), up 13% year-over-year; adjusted EBITDA was $97 million (16.7% of revenue), up 10%.

• Free cash flow was $113 million (19.5% of revenue), a new record, up from $59 million a year ago.

• Product revenues declined 8% in Q3 2025, while service revenues increased 13%.

Outlook and guidance

• Q4 2025 revenue expected between $555 million and $565 million, a 9% year-over-year decline.

• Q4 non-GAAP EPS expected at $2.15–$2.25, including a $39 million discrete tax benefit; normalized EPS up ~7% year-over-year.

• Full-year 2025 revenue guidance is $2.35–$2.36 billion, down 3% from 2024, but up ~2% normalized for prior year catch-up revenue.

• Full-year 2025 non-GAAP EPS guidance raised to $6.84–$6.94, up 23% year-over-year (16% normalized for tax rate).

• 2027 targets reaffirmed despite near-term volatility.