Revenue of $582 million, decreased 5%;
GAAP net income attributable to Itron, Inc. of $66 million, decreased $12 million;
GAAP diluted earnings per share of $1.41, decreased $0.29 per share;
Non-GAAP diluted EPS of $1.54, decreased $0.30 per share;
Adjusted EBITDA of $97 million, increased 10%; and
Free cash flow of $113 million, increased $55 million.
"Itron delivered third quarter results with record margin, profitability, and cash flow," said Tom Deitrich, Itron's president and CEO. "Our customers are confronting a dramatic increase in complexity and uncertainty, and as reflected in our results, they are actively deploying advanced technology to address these challenges. Itron's Grid Edge Intelligence solutions are designed to solve dynamic problems in a rapidly changing world. Increased infrastructure agility enables utilities and municipalities to provide improved quality of service and safety."
Summary of Third Quarter Consolidated Financial Results(All comparisons made are against the prior year period unless otherwise noted)
RevenueTotal third quarter revenue of $582 million compared to $615 million in the prior year. The decrease was driven primarily by portfolio optimization and the timing of project deployments.
Device Solutions revenue decreased 16%, or 19% in constant currency, due to lower legacy electricity product sales related to portfolio optimization in EMEA and lower North American water volumes.
Networked Solutions revenue decreased 6% due to the timing of project deployments.
Outcomes revenue increased 11%, or 10% in constant currency, due to increased recurring revenue.
Gross MarginItron's third quarter gross margin of 37.7% increased 360 basis points from the prior year due to customer and product mix.
Operating Expenses and Operating IncomeGAAP operating expenses of $138 million increased $2 million from the prior year. Non-GAAP operating expenses of $130 million were unchanged from the prior year.
GAAP operating income of $82 million was $8 million higher than the prior year and non-GAAP operating income of $89 million was $10 million higher than the prior year. Both increases were due to higher gross profit.
Net Income and Earnings per ShareNet income attributable to Itron, Inc. for the quarter was $66 million, or $1.41 per diluted share, compared with net income attributable to Itron, Inc. of $78 million, or $1.70 per diluted share in 2024. The decrease was driven by higher GAAP income tax expense, partially offset by higher GAAP operating income. Prior year income tax expense benefited from a favorable resolution of a foreign tax audit.
Non-GAAP net income attributable to Itron, Inc., which excludes the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, loss on sale of business, strategic initiative expense, acquisition and integration related expenses, and the tax effect of excluding these expenses, was $72 million, or $1.54 per diluted share, compared with $84 million, or $1.84 per diluted share, in 2024. The decrease was driven by higher Non-GAAP income tax expense, partially offset by higher non-GAAP operating income. Prior year income tax expense benefited from a favorable resolution of a foreign tax audit.
Cash FlowNet cash provided by operating activities was $118 million in the third quarter compared with $65 million in the prior year. Free cash flow was $113 million in the third quarter compared with $59 million in the prior year. The increase in free cash flow was primarily due to improved working capital, decreased tax payments, and higher earnings.
Other Measures
Total backlog at quarter end was $4.3 billion compared with $4.0 billion in the prior year. Bookings in the quarter totaled $380 million.
Q4 2025 Outlook and Full Year 2025 Outlook Update
Outlook for the fourth quarter of 2025 is as follows:
Revenue between $555 and $565 million
Non-GAAP diluted EPS between $2.15 and $2.25
Itron's outlook for the full year 2025 has been updated as follows:
Revenue between $2.35 to $2.36 billion
Non-GAAP diluted EPS between $6.84 to $6.94
Urbint, Inc. AcquisitionItron, Inc. announced on October 6, 2025, the signing of a definitive agreement to acquire Urbint, Inc., a privately held software company based in Miami, Florida. The purchase price for the acquisition is $325 million and will be funded through cash on hand. The transaction is expected to close during the fourth quarter of 2025.
Earnings Conference CallItron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on October 30, 2025. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the company's website at https://investors.itron.com/events-presentations. Participants should access the webcast 10 minutes prior to the start of the call. A webcast replay of the conference call will be available through Nov. 6, 2025 and may be accessed on the company's website at https://investors.itron.com/events-presentations.
About ItronItron is transforming how the world manages energy, water and city services. Our trusted intelligent infrastructure solutions help utilities and cities improve efficiency, build resilience and deliver safe, reliable and affordable service. With edge intelligence, we connect people, data insights and devices so communities can better manage the essential resources they rely on to live and thrive. Join us as we create a more resourceful world: www.itron.com
Itron® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.
Cautionary Note Regarding Forward Looking StatementsThis release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this release. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek", "project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plans, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws, regulations, tariffs, sanctions, trade policies and retaliatory responses, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including without limitation those resulting from extraordinary events or circumstances and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our Annual Report on Form 10-K for the year ended Dec 31, 2024 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update or revise any information in this press release.
Non-GAAP Financial InformationTo supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, free cash flow, and constant currency. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. When providing future outlooks and/or earnings guidance, a reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring related expenses and their related tax effects without unreasonable effort. These costs are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.
For additional information, contact:
Itron, Inc.
Paul VincentVice President, Investor Relations(512) 560-1172
David MeansDirector, Investor Relations(737)
Itron, Inc.
LinkedIn: https://www.linkedin.com/company/itroninc
X: https://twitter.com/ItronInc
Newsroom: https://itron.com/newsroom
Blog: https://itron.com/blog
ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2025
2024
2025
2024
Revenues
Product revenues
$
494,323
$
538,249
$
1,534,648
$
1,598,978
Service revenues
87,302
77,213
260,889
228,995
Total revenues
581,625
615,462
1,795,537
1,827,973
Cost of revenues
Product cost of revenues
319,238
362,579
1,003,074
1,076,033
Service cost of revenues
42,842
43,285
132,081
126,503
Total cost of revenues
362,080
405,864
1,135,155
1,202,536
Gross profit
219,545
209,598
660,382
625,437
Operating expenses
Sales, general and administrative
83,139
79,639
257,665
254,023
Research and development
50,032
51,237
153,932
156,691
Amortization of intangible assets
4,403
4,814
13,425
13,311
Restructuring
188
(723
)
872
(624
)
Loss on sale of business
—
698
79
656
Total operating expenses
137,762
135,665
425,973
424,057
Operating income
81,783
73,933
234,409
201,380
Other income (expense)
Interest income
13,569
13,420
37,582
22,394
Interest expense
(5,647
)
(5,605
)
(16,888
)
(9,788
)
Other income (expense), net
996
677
1,359
695
Total other income (expense)
8,918
8,492
22,053
13,301
Income before income taxes
90,701
82,425
256,462
214,681
Income tax provision
(24,478
)
(3,515
)
(56,137
)
(32,124
)
Net income
66,223
78,910
200,325
182,557
Net income attributable to noncontrolling interests
610
951
898
1,559
Net income attributable to Itron, Inc.
$
65,613
$
77,959
$
199,427
$
180,998
Net income per common share - Basic
$
1.43
$
1.73
$
4.38
$
3.98
Net income per common share - Diluted
$
1.41
$
1.70
$
4.30
$
3.91
Weighted average common shares outstanding - Basic
45,746
44,982
45,574
45,458
Weighted average common shares outstanding - Diluted
46,660
45,839
46,405
46,239
ITRON, INC.
SEGMENT INFORMATION
(Unaudited, in thousands)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2025
2024
2025
2024
Product revenues
Device Solutions
$
103,097
$
122,119
$
340,423
$
365,956
Networked Solutions
365,378
390,201
1,119,381
1,158,857
Outcomes
25,848
25,929
74,844
74,165
Total Company
$
494,323
$
538,249
$
1,534,648
$
1,598,978
Service revenues
Device Solutions
$
525
$
619
