Itron, Inc.

Itron reported Q2 revenue of $563 million, down year over year due to timing of project deployments in Networked Solutions, and non-GAAP EPS of $1.59 versus $1.62 a year ago. Adjusted gross margin was 41.4%, up 460 basis points year over year and a quarterly record; adjusted EBITDA was $97 million, up 8% year over year, and free cash flow was $81 million versus $91 million last year. For Q3, management guided to revenue of $590 million to $600 million and non-GAAP EPS of $1.50 to $1.60. For the full year, revenue is expected at $2.37 billion to $2.41 billion and non-GAAP EPS at $6.30 to $6.50, with the company saying the midpoint implies about 7% higher EPS than the February outlook.

Tom Deitrich emphasized that Itron is benefiting from a structurally better operating model that can perform through quarterly timing swings in utility deployments. He said the company is the “intelligence layer” of the distribution grid and framed demand as durable across electricity, gas and water because utilities need more visibility, automation and resilience. His tone was confident and constructive, highlighting record pipeline levels, mid-market traction, and wins at customers such as LADWP and SMUD.

Joan Hooper focused on the mechanics behind the quarter: revenue of $563 million, gross margin of 41%, adjusted gross margin of 41.4%, adjusted EBITDA of $97 million, non-GAAP EPS of $1.59 and free cash flow of $81 million. She said the lower revenue versus last year reflected deployment timing, while margin expansion came from favorable mix, operational efficiencies and cost discipline. She also noted $1.6 billion of total debt, net leverage of 2.3x, liquidity of $1.5 billion including $745 million of cash and equivalents and $707 million available on the revolver, plus $52 million spent repurchasing 644,000 shares.

Analysts pressed on the second-half revenue step-up, and management said the main driver is increased Networked Solutions deployment, not a need for new bookings to hit the back half. Questions also focused on whether utility spending is being crowded out by generation and data center demand; Tom argued distribution CapEx is still growing and said the need for grid-edge intelligence is actually being reinforced by affordability, reliability and load-growth pressures. Analysts asked about gas refresh, regional demand, and the recent acquisitions; management said gas opportunity is well above historical norms, most regions remain constructive, and Urbint/Locusview integration and cross-selling are on track.