Itron Reports 7% Revenue Decline in Q2 2026, Completes Acquisition of Locusview

Itron, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenues of $562.9 million, down 7% from $606.8 million in the same period last year. The decrease was primarily driven by a 12% drop in product revenues, which totaled $453.5 million, while service revenues increased by 22% to $109.4 million. For the first half of 2026, revenues were $1.15 billion, a 5% decrease from $1.21 billion in 2025. Despite the revenue decline, the company achieved a gross profit of $230.6 million, reflecting a gross margin of 41.0%, an improvement from 36.9% in the prior year.

Operating expenses rose by 5% to $154.6 million for the second quarter, leading to an operating income of $76.1 million, nearly unchanged from $76.4 million in 2025. Net income attributable to Itron, Inc. was $53.3 million, down 22% from $68.3 million in the previous year, resulting in a diluted earnings per share of $1.19, compared to $1.47 in 2025. The company also reported a non-GAAP net income of $70.7 million, down from $75.1 million, with a non-GAAP diluted EPS of $1.59.

Strategically, Itron completed the acquisition of Locusview, Ltd. on January 5, 2026, for $546.4 million, enhancing its Resiliency Solutions offerings. This acquisition added significant intangible assets, including customer contracts and core-developed technology. The company also initiated a new stock repurchase program, authorizing up to $200 million in share buybacks over 18 months, following a previous program that repurchased $100 million worth of shares in February 2026.

Operationally, Itron's total backlog stood at $4.4 billion as of June 30, 2026, with a twelve-month backlog of $1.7 billion, indicating a slight decrease from the previous year. The company reported a total of 1,050 employees as of June 30, 2026, reflecting ongoing efforts to optimize its workforce amid restructuring initiatives. The company continues to monitor global economic conditions, including supply chain disruptions and inflationary pressures, which may impact future performance.

Looking ahead, Itron anticipates that existing cash, cash flows from operations, and access to capital markets will be sufficient to fund its operations and obligations for the foreseeable future. The company remains focused on leveraging its acquisitions and enhancing its product offerings to drive growth, despite the challenges posed by market conditions.