Itron, Inc. Reports 1% Revenue Growth and Increased Net Income in Q1 2025

Itron, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $607.2 million, a slight increase of 1% from $603.4 million in the same period of 2024. The company's product revenues were $523.1 million, while service revenues reached $84.0 million. Gross profit for the quarter was $217.2 million, resulting in a gross margin of 35.8%, up from 34.0% in the prior year. Operating income was reported at $76.2 million, with net income attributable to Itron, Inc. amounting to $65.5 million, compared to $51.7 million in the previous year. This translated to a diluted earnings per share of $1.42, an increase of $0.30 from the prior year.

In terms of operational performance, Itron's total backlog increased to $4.7 billion, with a twelve-month backlog of $1.6 billion as of March 31, 2025, compared to $4.3 billion and $1.9 billion, respectively, a year earlier. The company noted a decrease in product revenues, which fell by $4.7 million, while service revenues increased by $8.4 million. The Device Solutions segment saw a revenue decline of $0.9 million, while Networked Solutions decreased by $4.8 million. In contrast, the Outcomes segment experienced a revenue increase of $9.4 million, driven by managed services and software licenses.

Itron's operating expenses decreased by $1.6 million, or 1%, primarily due to a reduction in research and development costs. The company reported total other income of $6.1 million, an increase from $2.4 million in the same quarter of 2024, largely attributed to a rise in interest income. The effective income tax rate remained consistent at 21%, aligning with the federal statutory rate.

The company continues to focus on strategic initiatives, including a restructuring plan approved in February 2023 aimed at optimizing global supply chain and manufacturing operations. As of March 31, 2025, the restructuring projects were substantially complete, with $33.0 million accrued for related costs. Itron's liquidity position remains strong, with cash and cash equivalents totaling $1.12 billion, up from $1.05 billion at the end of 2024. The company anticipates that existing cash, cash flows from operations, and access to capital markets will be sufficient to fund its operations and commitments for the foreseeable future.

Looking ahead, Itron's management remains optimistic about future growth, emphasizing the importance of new product development and strategic partnerships. The company is also monitoring global economic conditions and supply chain dynamics, which could impact its operations and financial performance.