Itron — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $599 million, a 3% increase from $582 million in the prior year period.
• Annual recurring revenue was $423 million, a 25% increase year-over-year.
• GAAP net income attributable to Itron, Inc. was $71 million, an increase of $6 million from the prior year.
• GAAP diluted earnings per share (EPS) were $1.61, an increase of $0.20 per share from $1.41 in the prior year.
• Non-GAAP diluted EPS were $1.94, an increase of $0.40 per share from $1.54 in the prior year.
• Adjusted EBITDA was $115 million, an 18% increase from the prior year.
• Free cash flow was $96 million, a decrease of $18 million from $113 million in the prior year.
• Adjusted gross margin was 41.3%, an increase of 350 basis points from 37.7% in the prior year.
• GAAP operating income was $95 million, an increase of $14 million from the prior year.
• Non-GAAP operating income was $107 million, an increase of $18 million from the prior year.
• Net cash provided by operating activities was $102 million, compared to $118 million in the prior year.

Guidance and Future Outlook:

• Q4 2026 revenue is forecast between $621 million and $636 million.
• Q4 2026 non-GAAP diluted EPS is forecast between $1.70 and $1.80.
• Full year 2026 revenue is forecast between $2.37 billion and $2.385 billion.
• Full year 2026 non-GAAP diluted EPS is forecast between $6.72 and $6.82.

Business Segments and Product Lines:

• Device Solutions revenue decreased 2% (1% in constant currency) due to lower legacy gas product sales.
• Networked Solutions revenue decreased 1% due to the timing of project deployments.
• Outcomes revenue increased 9% driven by higher services revenue.
• Resiliency Solutions revenue was $16 million.
• Total backlog at quarter end was $4.3 billion.
• Bookings during the quarter totaled $482 million.

Management Commentary and Tone:

• President and CEO Tom Deitrich stated the company delivered a strong third quarter with revenue returning to growth at the top end of the outlook and record adjusted EBITDA.
• Management noted earnings were well ahead of expectations, demonstrating the earnings leverage of a stronger operating model.
• Management cited utilities' needs for capacity, reliability, resiliency, and affordability as drivers for demand.
• Management highlighted that the expanding software and services portfolio is supporting recurring revenue growth.

Other Key Points:

• Operating expenses increased due to the Urbint and Locusview acquisitions.
• Free cash flow decrease was primarily attributed to changes in working capital, higher cash tax payments, and lower interest income.
• The company hosts a conference call on October 27, 2026, at 10:00 a.m. EDT to discuss results.
• Non-GAAP financial measures exclude amortization of intangible assets, restructuring, loss on sale of business, strategic initiative expenses, and acquisition and integration related expenses.