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Itron Inc (ITRI) Q1 2025 Earnings Call Highlights: Record Gross Margin and Strong Financial ...

In This Article:

  • Revenue: $607 million, increased 1% year-over-year.

  • Adjusted EBITDA: $88 million, increased 15% year-over-year.

  • Non-GAAP Earnings Per Share: $1.52, up from $1.24 a year ago.

  • Free Cash Flow: $67 million, compared to $34 million a year ago.

  • Gross Margin: 35.8%, a quarterly record, up 180 basis points year-over-year.

  • GAAP Net Income: $65 million or $1.42 per diluted share, compared to $52 million or $1.12 per share in the prior year.

  • Bookings: $530 million, book-to-bill ratio of 0.9 to 1.

  • Backlog: $4.7 billion at quarter end.

  • Device Solutions Revenue: $126 million, gross margin of 30%, operating margin of 24.2%.

  • Network Solutions Revenue: $403 million, gross margin of 36.9%, operating margin of 28.8%.

  • Outcomes Revenue: $79 million, gross margin of 39.2%, operating margin of 18.2%.

  • Total Debt: $1.265 billion, net debt of $142 million.

  • Cash and Equivalents: $1.1 billion.

  • Net Leverage: 0.4 times.

  • Q2 Revenue Outlook: $605 million to $615 million.

  • Q2 Non-GAAP EPS Outlook: $1.30 to $1.40 per diluted share.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Itron Inc (NASDAQ:ITRI) reported a strong first quarter with revenue of $607 million, adjusted EBITDA of $88 million, and non-GAAP earnings per share of $1.52.

  • The company achieved a record gross margin of 35.8%, driven by favorable product mix and operational efficiencies.

  • Itron Inc (NASDAQ:ITRI) has a substantial backlog of $4.7 billion, indicating strong future demand and stability.

  • The Outcomes segment showed impressive growth, with a 14% year-over-year increase in revenue, driven by increased recurring revenue and software licenses.

  • The company is well-positioned to navigate macroeconomic uncertainties due to its strategic focus and operational execution, which align with customer needs.

Negative Points

  • Bookings for the first quarter were $530 million, resulting in a book-to-bill ratio of 0.9, which may indicate a potential slowdown in future orders.

  • The tariff environment remains dynamic, with an estimated EBITDA impact of $15 million for the year, which could affect profitability.

  • Device Solutions revenue was down 1% year-over-year, indicating potential challenges in this segment.

  • The Network Solutions segment experienced a slight decrease in gross margin due to product mix, which could impact future profitability.

  • There is uncertainty regarding the macroeconomic environment and trade policies, which could potentially affect customer demand and overall business performance.