Itron, Inc. Reports Q1 2026 Financial Results with $586.98 Million in Revenues

Itron, Inc. reported its financial results for the first quarter of 2026, revealing total revenues of $586.98 million, a decrease of 3% from $607.15 million in the same period last year. The decline was primarily attributed to a $45.3 million drop in product revenues, partially offset by a $25.2 million increase in service revenues. The company's gross profit improved to $236.32 million, resulting in a gross margin of 40.3%, up from 35.8% in the prior year. However, net income attributable to Itron, Inc. fell to $53.46 million, or $1.18 per diluted share, compared to $65.47 million, or $1.42 per diluted share, in the first quarter of 2025.

The company experienced significant changes in its operational landscape, including the acquisition of Locusview, Ltd. on January 5, 2026, for $546.6 million. This acquisition is expected to enhance Itron's Resiliency Solutions offerings. Additionally, Itron repurchased 1,050,309 shares of its common stock for $100 million as part of its ongoing stock repurchase program, which aims to buy back up to $250 million over an 18-month period. The company also issued $805 million in convertible notes in February 2026, which will mature in March 2032.

Itron's operational metrics showed a total backlog of $4.43 billion, with a twelve-month backlog of $1.6 billion as of March 31, 2026. The company reported a notable increase in its annual recurring revenue (ARR), which rose to $414 million from $324 million in the previous year. The company’s workforce remained stable, with no significant changes in employee headcount reported during the quarter.

The filing indicated that the increase in operating expenses, which rose by $27.7 million compared to the previous year, was primarily driven by higher sales, general, and administrative costs, as well as increased research and development expenses. The company also noted a decrease in interest income, which fell to $5.66 million from $11.71 million in the prior year, contributing to a total other expense of $0.38 million for the quarter.

Looking ahead, Itron's management expressed confidence in the company's ability to navigate market challenges and capitalize on growth opportunities, particularly through its strategic acquisitions and enhanced service offerings. The company continues to monitor global economic conditions and supply chain dynamics, which may impact future performance.