Itron’s fourth quarter results drew a strong positive reaction from the market, as management emphasized robust execution amid a shifting utility landscape. CEO Thomas Deitrich attributed performance to accelerating adoption of grid edge intelligence and expanding customer demand for outcomes-based solutions, citing a 27% increase in pipeline growth and a 58% rise in Outcomes backlog year over year. Deitrich noted, “The environment continues to be really constructive for us through fourth quarter and into 2026 and beyond,” highlighting the role of recurring revenue streams and a record financial performance in profitability and free cash flow. Management pointed to favorable customer and product mix and the impact of planned portfolio changes as key factors behind margin expansion, despite a year-on-year revenue decline.
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Itron (ITRI) Q4 CY2025 Highlights:
- Revenue: $571.7 million vs analyst estimates of $562 million (6.7% year-on-year decline, 1.7% beat)
- Adjusted EPS: $2.46 vs analyst estimates of $2.19 (12.4% beat)
- Adjusted EBITDA: $98.78 million vs analyst estimates of $85.67 million (17.3% margin, 15.3% beat)
- Revenue Guidance for Q1 CY2026 is $570 million at the midpoint, below analyst estimates of $580.6 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $6 at the midpoint, beating analyst estimates by 1.3%
- Operating Margin: 13.8%, up from 10.2% in the same quarter last year
- Market Capitalization: $4.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Itron’s Q4 Earnings Call
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Noah Duke Kaye (Oppenheimer) pressed for updates on utility demand and pipeline growth. CEO Thomas Deitrich highlighted strong bookings and a 27% year-over-year pipeline increase, attributing improvements to normalization in project timelines and robust Outcomes backlog growth.
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Mark Strouse (JPMorgan) questioned the competitive positioning of Itron’s Resiliency Solutions amid concerns about AI disruption. Deitrich emphasized the “stickiness” of field service tools and the value of trusted data integration, citing real-world examples of emergency response effectiveness.
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David Sunderland (Baird) probed the normalization of utility ordering and book-and-ship business. Deitrich described the environment as “constructive,” with book-and-ship activity robust in electricity and normalized in Europe, while U.S. water showed some softness.
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Chip Moore (Roth Capital Partners) asked about growth expectations if prior project delays had not occurred. Deitrich stressed structural changes in Itron’s business, with recurring revenue now a larger driver and traditional project lumpiness expected to persist.
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Scott Graham (Seaport Research Partners) inquired about long-term revenue targets and bookings inflection. Deitrich noted that 2027 margin targets were already met in 2025 and suggested future revenue would depend on the pace of network deployments, with new long-term targets to be set at a future investor day.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will be monitoring (1) the pace of recurring revenue growth and customer adoption of new Resiliency Solutions, (2) the stability and ramp-up of utility project deployments as market conditions normalize, and (3) the successful integration of Urbint and LocusView, including margin realization and the transition to earnings accretion. Additional attention will be paid to shifts in utility procurement and uptake of distributed intelligence applications.
Itron currently trades at $94.73, up from $89.36 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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