Itron Reports Q2 2025 Financial Results with $606.8M Revenue and 33% Net Income Increase

Itron, Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $606.8 million, a slight decrease from $609.1 million in the same period last year. The company's product revenues fell by 3% to $517.2 million, while service revenues increased by 18% to $89.6 million. For the first half of 2025, total revenues remained stable at $1.2 billion, with net income attributable to Itron rising 33% to $68.3 million, compared to $51.3 million in the prior year. The company’s diluted earnings per share (EPS) also increased to $1.47 from $1.10 in 2024.

In terms of operational performance, Itron's gross margin improved to 36.9% in the second quarter, up from 34.6% a year earlier, driven by better product mix and cost management. Operating expenses increased marginally by 1% to $147.2 million, primarily due to restructuring costs. The company reported an operating income of $76.4 million, an increase of 18% compared to the previous year. Additionally, Itron's total backlog reached $4.5 billion, with a twelve-month backlog of $1.5 billion, indicating a solid pipeline of future business.

Itron has been actively managing its capital structure, with cash and cash equivalents increasing to $1.22 billion as of June 30, 2025, up from $1.05 billion at the end of 2024. The company generated $168.8 million in cash from operating activities during the first half of 2025, a significant increase from $93.0 million in the same period last year. This improvement was attributed to higher earnings and better working capital management. Itron's investing activities saw a reduction in cash outflow to $10.7 million, compared to $47.8 million in 2024, reflecting a decrease in capital expenditures.

Strategically, Itron has focused on enhancing its product offerings and expanding its market presence. The company continues to invest in research and development, with operating expenses in this area slightly decreasing due to reduced professional service costs. Itron's restructuring plan, initiated in early 2023, aims to optimize its global supply chain and manufacturing operations, with substantial completion expected by March 2025. The company has also authorized a stock repurchase program of up to $100 million, although no shares have been repurchased under this program yet.

Looking ahead, Itron remains optimistic about its growth prospects, supported by a strong backlog and ongoing demand for its solutions in the utility and municipal sectors. The company is closely monitoring market conditions and supply chain dynamics, particularly in light of global economic uncertainties. Itron's management believes that existing cash reserves, along with anticipated cash flows from operations, will be sufficient to meet its operational and capital needs for the foreseeable future.