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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's recent performance was hindered by a 6.7% revenue decline, despite strong Q4 2025 profitability. The company's gross profit margin expanded to 37.7%, driven by favorable product mix and manufacturing efficiencies. However, 2026 guidance calls for flat revenue and lower adjusted net profits amid higher interest expense. Additionally, a significant reduction in holdings by Braun Stacey Associates Inc. may have negatively impacted investor sentiment.

1.c. Company Highlights

2. Itron Q1 2026: Strong Execution, Solid Margins, and a Clear Path Forward

Revenue surged to $587 million, up 5% YoY, while adjusted EBITDA climbed to $92 million, a 5% increase that kept gross margin ahead of expectations. Non‑GAAP EPS hit $1.49, surpassing the $1.26 estimate. The company’s valuation sits comfortably with a P/E of 13.46 and an EV/EBITDA of 9.0, underscoring disciplined profitability and attractive upside.

Publication Date: Apr -29

📋 Highlights
  • Q1 Revenue Growth:: Revenue reached $587M (5% YoY increase), driven by strong execution and accelerated project deployments.
  • Outcomes Segment Expansion:: Grew 22% YoY with $400M annual recurring revenue (ARR), up 28% YoY, reflecting robust infrastructure modernization demand.
  • Backlog Strength:: Total backlog hit $4.4B (post-Q1 bookings of $476M), supported by a $4.7B pipeline, indicating multiyear project visibility.
  • Q2 Guidance:: Revenue forecast at $560–570M (7% YoY decline) due to Q1 project acceleration; non-GAAP EPS expected at $1.25–1.35 (8% YoY dip).
  • 2027 Target Progress:: Ahead of gross margin, EBITDA, and EPS goals; revenue near low-end of range due to market conditions, but confident in structural grid investment tailwinds.

Revenue Growth

Q1 revenue of $587 million reflects a modest 5% year‑over‑year rise, driven by accelerated project deployments in the Outcomes segment. Bookings hit $476 million, sustaining a $4.4 billion backlog that aligns with guidance. The firm’s focus on high‑margin, recurring services is paying off, as ARR climbed to $400 million, a 28% increase.

Margin and Earnings

Adjusted EBITDA of $92 million and free cash flow of $79 million illustrate robust operating efficiency. Gross margin outperformed forecasts, thanks to pre‑inflation backlog roll‑outs and disciplined cost control. Thomas Deitrich highlighted that “good execution and the last of pre‑inflation backlog rolling out” kept margins ahead of expectations.

Recurring Revenue and Backlog

The Outcomes segment’s recurring revenue now accounts for roughly 75% of the $400 million ARR, with Resiliency Solutions contributing the majority. The backlog, largely multi‑year, is poised to translate into consistent future cash flows, reinforcing the company’s long‑term earnings trajectory.

Capital Efficiency and Cash Flow

Free cash flow of $79 million supports a free cash flow yield of 10.35% and a negative net debt/EBITDA of –1.62, indicating a solid balance sheet and ample liquidity for reinvestment or shareholder returns. The firm’s ROIC of 8.89% and ROE of 17.44% further highlight efficient capital deployment.

Future Outlook and Guidance

Q2 guidance projects revenue between $560 million and $570 million, a 7% decline YoY, reflecting an acceleration of first‑half deployments. Non‑GAAP EPS is forecast at $1.25–$1.35, down 8% from the prior year. Management remains confident that the second half will see a lift in Network deployments, supporting a back‑half loaded year.

Strategic Initiatives and Acquisitions

Integration of Urbint and LocustView continues, with no active search for new purchases in 2026. The company’s focus remains on platform build‑out and R&D to scale Resiliency Solutions, expected to become accretive to EPS in 2027. The pipeline remains near all‑time records, with bookings in Networking lumpy yet strategically positioned.

Market Position and Competitive Edge

Itron’s solutions unlock time‑to‑power by leveraging existing capacity and actionable data. The firm is well‑positioned for a multiyear grid buildout, benefiting from the inevitable modernization of aging infrastructure. With a strong backlog, disciplined margins, and a clear execution plan, Itron’s narrative is one of sustained growth and resilience in a volatile market.

3. NewsRoom

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Itron: Actual Results Would Provide More Comfort Than Upbeat Words

Apr -29

Source: seekingalpha.com

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Itron's Q1 Earnings and Sales Surpass Estimates, Down Y/Y

Apr -29

Source:

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Why Itron Stock Battled Back From a Big Sell-Off Today

Apr -28

Source: fool.com

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Itron, Inc. (ITRI) Q1 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

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Itron (ITRI) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -28

Source: zacks.com

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Itron (ITRI) Surpasses Q1 Earnings and Revenue Estimates

Apr -28

Source: zacks.com

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Itron Announces First Quarter 2026 Financial Results

Apr -28

Source: globenewswire.com

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Critical infrastructure giant Itron says it was hacked

Apr -27

Source: techcrunch.com

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

Stock-Card
ESCO Technologies

A-Score: 5.8/10

Value: 3.0

Growth: 7.7

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Sanmina

A-Score: 4.9/10

Value: 4.2

Growth: 6.2

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Trimble

A-Score: 4.7/10

Value: 1.3

Growth: 5.2

Quality: 6.9

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Itron

A-Score: 4.5/10

Value: 5.4

Growth: 5.8

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Littelfuse

A-Score: 4.5/10

Value: 3.3

Growth: 4.2

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

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

85.4$

Current Price

85.4$

Potential

-0.00%

Expected Cash-Flows