Itron (ITRI) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual earnings and profitability, driven by strong demand for Grid Edge Intelligence, Outcomes segment growth, and strategic acquisitions.

• Fourth quarter 2025 revenue was $572 million, with full-year revenue at $2.37 billion, both down year-over-year due to portfolio changes and project timing.

• Introduced a new Resiliency Solutions segment following the acquisitions of Urbint and Locusview, enhancing offerings across the asset lifecycle.

• Outcomes segment delivered record revenue, up 23% year-over-year in Q4.

• Bookings and backlog remained robust, with Q4 bookings at $737 million and total backlog at $4.5 billion.

Financial highlights

• Q4 revenue was $572 million; full-year revenue was $2.37 billion, both down year-over-year.

• Q4 GAAP net income was $102 million ($2.21 per share), up from $58 million ($1.26) last year; full-year GAAP net income was $301 million.

• Adjusted EBITDA for Q4 was $99 million (17% of revenue), up 21% year-over-year; full-year adjusted EBITDA was $374 million.

• Free cash flow in Q4 was $112 million, up from $70 million a year ago; full-year free cash flow was $383 million.

• Q4 GAAP gross margin was 40.5% (up 560 bps); Q4 adjusted gross margin was 40.7% (record, up 580 bps year-over-year).

Outlook and guidance

• 2026 revenue expected between $2.35 billion and $2.45 billion, implying 1% growth at the midpoint.

• 2026 non-GAAP EPS guidance is $5.75–$6.25 per share, with a 22% effective tax rate and dilution from acquisitions.

• Q1 2026 revenue expected at $565–$575 million, down 6% year-over-year; Q1 non-GAAP EPS $1.20–$1.30.

• Resiliency Solutions segment to contribute $65–$70 million in revenue and ~70% gross margin in 2026, but will be dilutive to EPS by $0.38 due to acquisition costs.

• ARR projected to grow mid-teens to 20% in 2026, including contributions from recent acquisitions.