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1. Company Snapshot

1.a. Company Description

Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide.The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes.The Device Solutions segment offers hardware products that are used for measurement, control, or sensing.


The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data.The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities.In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties.


It offers its products and services under the Itron brand.The company markets its products directly through its sales force, as well as through indirect sales force consisting of distributors, sales representatives, partners, and meter manufacturer representatives to utilities and municipalities.Itron, Inc.


was incorporated in 1977 and is headquartered in Liberty Lake, Washington.

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1.b. Last Insights on ITRI

Itron, Inc.'s recent performance was negatively impacted by a year-over-year decline in Q3 earnings and revenue, primarily due to portfolio shifts and project timing. The company's Q3 earnings per share (EPS) decreased to $1.54 from $1.84 a year ago, while revenue also fell. Additionally, Ethic Inc. reduced its stake in Itron by 30.7% in Q2, selling 841 shares. These factors contributed to the company's short-term challenges. Itron's Q3 results beat estimates, but the year-over-year decline in earnings and revenue likely affected its standing.

1.c. Company Highlights

2. Itron's Q3 2025 Earnings: A Strong Performance Amidst Industry Headwinds

Itron reported a robust financial performance in Q3 2025, with revenue of $582 million, adjusted EBITDA of $97 million, and non-GAAP earnings per share of $1.54, beating analyst estimates of $1.48. The company's gross margin expanded to 37.7%, a company record for the second consecutive quarter, and was 360 basis points higher than the previous year. Free cash flow was $113 million, demonstrating the company's ability to generate cash from its operations.

Publication Date: Nov -01

📋 Highlights
  • Record Financial Performance:: Set new records for adjusted EBITDA ($97M) and free cash flow ($113M), with gross margin hitting 37.7% (up 360 bps YoY).
  • Revenue Decline Amid Strategic Shifts:: Q3 revenue ($582M) fell 9% YoY due to portfolio changes and delayed project deployments, though near guidance's top end.
  • Earnings Pressure from Taxes:: Non-GAAP EPS dropped $0.30 to $1.54 YoY, with taxes reducing EPS by $0.51 and 4Q tax rate estimated at 19% (up from prior periods).
  • Outcomes Growth Outpaces Networks:: Outcomes revenue rose 10% (driven by recurring software/services), while Networks revenue declined 6% due to delayed deployments.
  • Strategic Acquisitions and Backlog:: Acquired Urbint (SaaS-focused) for cross-synergy potential; 3-4 year backlog visibility remains strong despite 1-2 year project delivery delays.

Revenue Growth and Segment Performance

Outcomes revenue increased 10% on a constant currency basis, driven by the continued growth of recurring revenue. However, Networks revenue declined 6% due to the timing of large project deployments, with some customers pushing deployments to the right. As Tom Deitrich noted, "The demand is coming, and our win rates are at or above historical rates." The company's recurring revenue bookings are happening at a strong rate, with the company passing its goal for the year in Q3.

Guidance and Outlook

Itron expects fourth-quarter revenue to be between $555 million to $565 million, representing a decline of 9% year-over-year. Non-GAAP earnings per share are expected to be between $2.15 to $2.25 per diluted share, assuming a negative effective tax rate of approximately 19%. Analysts estimate revenue growth of 4.4% for next year, which is a relatively modest growth rate.

Valuation and Metrics

With a P/E Ratio of 17.82 and an EV/EBITDA of 11.42, Itron's valuation appears reasonable. The company's Return on Equity (ROE) is 16.65%, and its Return on Invested Capital (ROIC) is 8.81%. The Free Cash Flow Yield is 7.67%, indicating a decent return for investors. The Net Debt / EBITDA ratio is -2.14, highlighting the company's net cash position.

Acquisition and Growth Prospects

The company's acquisition of Urbint, a SaaS-based business, has the potential for cross-pollination and synergies, particularly with restoration services and vegetation management services. While the growth trajectory for 2026 is uncertain, Tom Deitrich expressed tremendous confidence in the business, and the company's long-term growth prospects remain intact.

3. NewsRoom

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Itron, Inc. Announces Annual Meeting

Dec -04

Source: globenewswire.com

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Inside the Digital Nerve System of Modern Utilities and the $100 Million Bet on Itron

Nov -26

Source: fool.com

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Itron and CLS Team Up to Accelerate Smart Lighting Infrastructure

Nov -24

Source: zacks.com

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ITRI Boosts Resiliency Solutions Portfolio With $525M Locusview Buyout

Nov -21

Source: zacks.com

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Itron and Connected Lighting Solutions Work Together to Expand Smart Lighting Infrastructure in Australia

Nov -19

Source: globenewswire.com

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Itron Expands Presence in United Kingdom Water Sector with New Cyble™ 5 Contract

Nov -18

Source: globenewswire.com

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Dr. Pei-Zen Chang zum neuen ITRI-Präsidenten ernannt

Nov -05

Source: prnewswire.com

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Oppenheimer Asset Management Inc. Buys New Position in Itron, Inc. $ITRI

Nov -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Networked Solutions

Expected Growth: 4.5%

Itron's Networked Solutions segment growth is driven by increasing adoption of smart grid technologies, rising demand for energy efficiency and grid resilience, and expanding global presence. Additionally, strategic partnerships, innovative product offerings, and growing investments in IoT and AI technologies are contributing to the 4.5% growth rate.

Device Solutions

Expected Growth: 4.8%

Itron's Device Solutions segment growth of 4.8% is driven by increasing adoption of smart grid technologies, rising demand for advanced metering infrastructure, and growing need for energy efficiency and grid reliability. Additionally, the segment benefits from Itron's strong relationships with utilities and municipalities, as well as its expanding portfolio of IoT-enabled devices.

Outcomes

Expected Growth: 5.2%

Itron's 5.2% growth is driven by increasing adoption of smart grid technologies, rising demand for energy efficiency and water conservation, and strategic acquisitions expanding its product portfolio and geographic reach. Additionally, growing investments in grid modernization and renewable energy integration are contributing to the company's growth momentum.

7. Detailed Products

Itron Riva

Itron Riva is an IoT-based solution that enables utilities and cities to deploy, manage, and optimize IoT devices and applications at scale.

OpenWay Riva

OpenWay Riva is a smart grid solution that provides advanced metering infrastructure, grid management, and analytics.

Itron Enterprise Edition Meter Data Management

A comprehensive meter data management system that collects, processes, and analyzes meter data from various sources.

Itron Analytics

A cloud-based analytics platform that provides insights and predictive analytics for utilities and cities.

Itron Networked Solutions

A suite of networked solutions for advanced metering infrastructure, grid management, and IoT applications.

Itron Professional Services

A range of consulting, implementation, and support services for utilities, cities, and industrial companies.

8. Itron, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Itron, Inc. operates in a niche market, providing advanced technologies for the energy and water industries. While there are some substitutes available, they are not as effective or efficient as Itron's solutions, reducing the threat of substitutes.

Bargaining Power Of Customers

Itron, Inc. has a diverse customer base, including utilities, municipalities, and industrial companies. While some customers may have bargaining power, the company's strong relationships and customized solutions reduce the overall bargaining power of customers.

Bargaining Power Of Suppliers

Itron, Inc. relies on a network of suppliers for components and materials. While some suppliers may have bargaining power, the company's diversified supply chain and long-term contracts mitigate the risk of supplier bargaining power.

Threat Of New Entrants

The energy and water industries are heavily regulated, and Itron, Inc. has established strong relationships with its customers and partners. The high barriers to entry, including regulatory hurdles and significant capital investments, reduce the threat of new entrants.

Intensity Of Rivalry

The energy and water industries are highly competitive, with several established players competing for market share. Itron, Inc. faces intense competition from companies like Siemens, ABB, and Schneider Electric, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.38%
Debt Cost 3.95%
Equity Weight 73.62%
Equity Cost 10.85%
WACC 9.03%
Leverage 35.84%

11. Quality Control: Itron, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ESCO Technologies

A-Score: 5.1/10

Value: 1.6

Growth: 6.1

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Trimble

A-Score: 4.8/10

Value: 1.2

Growth: 5.2

Quality: 6.6

Yield: 0.0

Momentum: 7.5

Volatility: 8.3

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Sanmina

A-Score: 4.7/10

Value: 4.2

Growth: 5.0

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Itron

A-Score: 4.6/10

Value: 3.1

Growth: 5.7

Quality: 6.7

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

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Plexus

A-Score: 4.4/10

Value: 3.6

Growth: 4.7

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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Littelfuse

A-Score: 4.2/10

Value: 2.7

Growth: 4.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.87$

Current Price

97.87$

Potential

-0.00%

Expected Cash-Flows