Itron, Inc.

What they do

Itron provides an integrated portfolio of endpoints (sensors, switches, meters), communication networks, and software/services that collect and analyze data for utilities and cities. The company operates through segments including Device Solutions, Networked Solutions, Outcomes, and the newer Resiliency Solutions. It serves utility customers primarily, addressing grid edge intelligence, smart city applications, and critical infrastructure.

Revenue drivers

• Networked Solutions — Largest segment, provides communication networks and related products. Q2 2026 revenue decreased 17% due to timing of project deployments and lower volumes.
• Outcomes — Software and services segment. Q2 2026 revenue increased 13% due to increased services revenue, contributing to annual recurring revenue growth.
• Device Solutions — Sells electricity, gas, and water meters and related endpoints. Q2 2026 revenue decreased 1% (3% in constant currency) due to lower legacy electricity product sales.
• Resiliency Solutions — New segment from the Urbint acquisition, focusing on infrastructure resiliency software. Q2 2026 revenue was $16 million.

Recent performance

For Q2 2026, total revenue was $563 million, down 7% from $607 million in Q2 2025, driven by lower Networked Solutions revenue. GAAP net income attributable to Itron was $53 million, or $1.19 per diluted share, down from $68 million ($1.47) a year ago, due to lower interest income and a higher tax rate. Adjusted EBITDA increased 8% to $97 million, and free cash flow was $81 million, down $9 million. For the six months ended June 30, 2026, revenue was $1.15 billion, down from $1.21 billion, and net income attributable to Itron was $107 million versus $134 million in the prior-year period.

Strategy

Itron is focused on driving growth through grid edge intelligence, expanding software and services, and integrating recent acquisitions like Urbint and Locusview to broaden resiliency offerings. Management emphasizes a stronger operating model, aiming for structurally higher earnings power, as evidenced by record gross margin and improved profitability. The company continues to invest in innovation, open standards, and interoperability to support utility and city customers in managing grid expansion, electrification, and distributed energy resources.

Risks

• Utility spending cyclicality — Revenue depends on utility capital spending, which is irregular and subject to deferrals due to economic conditions, regulatory decisions, and customer access to capital.
• Long and unpredictable sales cycles — Smart metering solution sales cycles involve lengthy budgeting, regulatory approval, and vendor selection processes that can take years and cause revenue volatility.
• Product mix shift and adoption risk — Transitioning to more complex offerings may lead to delayed adoption, defects, or higher costs if customers are reluctant to switch from established products.
• Supply chain and raw material exposure — Delays or shortages in components and raw materials, including semiconductors and metals, could increase costs and disrupt manufacturing and revenue.

Outlook

Management expects Q3 2026 revenue between $590 and $600 million and non-GAAP diluted EPS between $1.50 and $1.60. For full-year 2026, they raised guidance to revenue of $2.37 to $2.41 billion and non-GAAP diluted EPS of $6.30 to $6.50, citing a durable demand environment and a stronger operating model.