Itron Announces Second Quarter 2025 Financial Results

Rhea-AI Summary

Itron (NASDAQ: ITRI) reported strong Q2 2025 financial results with revenue of $607 million and GAAP net income of $68 million. The company achieved quarterly record levels in margins, profitability, and cash flow, with GAAP diluted EPS of $1.47, up $0.37 year-over-year.

Key highlights include a 16% increase in Adjusted EBITDA to $90 million and free cash flow of $91 million, up $46 million from the previous year. The company's total backlog reached $4.5 billion, compared to $4.1 billion in the prior year. For full-year 2025, Itron updated its outlook, projecting revenue between $2.35-2.4 billion and non-GAAP diluted EPS of $6.00-6.20.

Positive

• Record levels achieved in margins, profitability, and cash flow
• Gross margin increased 230 basis points to 36.9%
• Free cash flow doubled to $91 million from $45 million year-over-year
• Total backlog grew to $4.5 billion from $4.1 billion year-over-year
• Outcomes revenue increased 9% due to higher recurring revenue

Negative

• Device Solutions revenue decreased 5% (8% in constant currency)
• Networked Solutions revenue declined 1% year-over-year
• Operating expenses increased by $1 million compared to prior year
• Market environment remains uncertain with trade policy volatility

Insights

Financial Analyst

Itron delivered record Q2 margins and profitability with strong cash flow generation despite flat revenue, suggesting operational efficiency improvements.

Itron's Q2 results demonstrate impressive margin expansion and cash flow generation despite essentially flat revenue. Revenue came in at $607 million, slightly down from $609 million in Q2 2024, yet the company achieved meaningful improvements in profitability metrics. Gross margin expanded by 230 basis points to 36.9%, driving a 16% increase in Adjusted EBITDA to $90 million.

The earnings quality is particularly noteworthy. Non-GAAP EPS increased 34% to $1.62, significantly outpacing revenue performance. Free cash flow nearly doubled to $91 million, indicating strong operational execution and working capital management. This cash generation strengthens Itron's financial flexibility for potential investments or shareholder returns.

Segment performance reveals strategic shifts. Device Solutions revenue declined 5% (8% in constant currency) due to portfolio optimization away from legacy electricity products, partially offset by water segment growth. Networked Solutions was down slightly by 1%, while Outcomes grew 9% driven by recurring revenue - signaling progress in the company's higher-margin software and services transition.

The backlog remains robust at $4.5 billion, up from $4.1 billion year-over-year, providing revenue visibility. However, Q3 revenue guidance of $570-585 million suggests sequential softness, likely reflecting the "near-term macroeconomic uncertainty and trade policy volatility" management mentioned. The full-year guidance update provides a clearer picture of expected performance trajectory.

Overall, Itron's focus on profitability and cash flow generation appears to be yielding results, even as revenue growth faces challenges in the current environment. The margin improvements and backlog strength position the company well despite macroeconomic headwinds.

LIBERTY LAKE, Wash., July 31, 2025 (GLOBE NEWSWIRE) -- Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced today financial results for its second quarter ended June 30, 2025. Key results for the quarter include (compared with the second quarter of 2024):

• Revenue of $607 million;
• Gross profit of $224 million, increased 6%;
• GAAP net income attributable to Itron, Inc. of $68 million, increased $17 million;
• GAAP diluted earnings per share of $1.47, increased $0.37 per share;
• Non-GAAP diluted EPS of $1.62, increased $0.41 per share;
• Adjusted EBITDA of $90 million, increased 16%; and
• Free cash flow of $91 million, increased $46 million.
  

"Itron delivered solid second quarter results driving quarterly record levels of margin, profitability, and cash flow," said Tom Deitrich, Itron’s president and CEO. "The market environment remains dynamic with long-term growth, against a backdrop of near-term macroeconomic uncertainty and trade policy volatility. We remain focused on supporting our customers as they adapt to balance many competing priorities and weigh complex decisions."

Summary of Second Quarter Consolidated Financial Results
(All comparisons made are against the prior year period unless otherwise noted)

Revenue
Total second quarter revenue of $607 million compared to $609 million in the prior year. This comparison reflects catch-up of previously constrained revenue that occurred during Q2'24.

Device Solutions revenue decreased 5%, or 8% in constant currency, due to lower legacy electricity product sales related to portfolio optimization, partially offset by increased water sales.

Networked Solutions revenue decreased 1% when compared to the second quarter of 2024 due to no constrained revenue catch-up as well as the timing of shipments and project deployments.

Outcomes revenue increased 9%, due to increased recurring revenue and software licenses.

Gross Margin
Itron's second quarter gross margin of 36.9% increased 230 basis points from the prior year due to product and customer mix.

Operating Expenses and Operating Income
GAAP operating expenses of $147 million increased $1 million from the prior year. Non-GAAP operating expenses of $141 million were unchanged compared to the prior year.

GAAP operating income of $76 million was $12 million higher than the prior year and non-GAAP operating income of $82 million was $13 million higher than the prior year. Both increases were due to higher gross profit.

Net Income and Earnings per Share
Net income attributable to Itron, Inc. for the quarter was $68 million, or $1.47 per diluted share, compared with net income attributable to Itron, Inc. of $51 million, or $1.10 per diluted share in 2024. The increase was driven by higher GAAP operating income and higher interest income.

Non-GAAP net income attributable to Itron, Inc., which excludes the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, (gain) loss on sale of business, acquisition and integration related expenses, and the tax effect of excluding these expenses, was $75 million, or $1.62 per diluted share, compared with $56 million, or $1.21 per diluted share, in 2024. The increase was due to higher non-GAAP operating income and higher interest income.

Cash Flow
Net cash provided by operating activities was $97 million in the second quarter compared with $52 million in the prior year. Free cash flow was $91 million in the second quarter compared with $45 million in the prior year. The increase in free cash flow was primarily due to higher earnings, higher interest income, and decreased tax payments.

Other Measures

Total backlog at quarter end was $4.5 billion compared with $4.1 billion in the prior year. Bookings in the quarter totaled $454 million. 

Q3 2025 Outlook and Full Year 2025 Outlook Update

Outlook for the third quarter of 2025 is as follows:

• Revenue between $570 and $585 million
• Non-GAAP diluted EPS between $1.45 and $1.55

Itron's outlook for the full year 2025 has been updated as follows:

• Revenue between $2.35 to $2.4 billion
• Non-GAAP diluted EPS between $6.00 to $6.20

Earnings Conference Call
Itron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on July 31, 2025. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the company’s website at https://investors.itron.com/events-presentations. Participants should access the webcast 10 minutes prior to the start of the call. A webcast replay of the conference call will be available through Aug. 7, 2025 and may be accessed on the company's website at https://investors.itron.com/events-presentations.

About Itron
Itron is transforming how the world manages energy, water and city services. Our trusted intelligent infrastructure solutions help utilities and cities improve efficiency, build resilience and deliver safe, reliable and affordable service. With edge intelligence, we connect people, data insights and devices so communities can better manage the essential resources they rely on to live and thrive. Join us as we create a more resourceful world: www.itron.com

Itron^® is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.

Cautionary Note Regarding Forward Looking Statements
This release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this release. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek", "project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plans, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws, regulations, tariffs, sanctions, trade policies and retaliatory responses, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including without limitation those resulting from extraordinary events or circumstances and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our Annual Report on Form 10-K for the year ended Dec 31, 2024 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update or revise any information in this press release.

Non-GAAP Financial Information
To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, free cash flow, and constant currency. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. When providing future outlooks and/or earnings guidance, a reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring related expenses and their related tax effects without unreasonable effort. These costs are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.

For additional information, contact:

Itron, Inc.

Paul Vincent
Vice President, Investor Relations
(512) 560-1172

David Means
Director, Investor Relations
(737) 242-8448
Investors@itron.com

Itron, Inc.

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• Newsroom: https://itron.com/newsroom 
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ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
			Three Months Ended June 30,							Six Months Ended June 30,
				2025			2024				2025			2024
Revenues
	Product revenues		$	517,184		$	532,907			$	1,040,325		$	1,060,729
	Service revenues			89,577			76,162				173,587			151,782
		Total revenues		606,761			609,069				1,213,912			1,212,511
Cost of revenues
	Product cost of revenues			337,394			356,747				683,836			713,454
	Service cost of revenues			45,749			41,862				89,239			83,218
		Total cost of revenues		383,143			398,609				773,075			796,672
Gross profit				223,618			210,460				440,837			415,839
Operating expenses
	Sales, general and administrative			87,615			88,413				174,526			174,384
	Research and development			53,810			53,053				103,900			105,454
	Amortization of intangible assets			4,543			4,511				9,022			8,497
	Restructuring			1,237			(99	)			684			99
	(Gain) loss on sale of business			—			(65	)			79			(42	)
		Total operating expenses		147,205			145,813				288,211			288,392
Operating income				76,413			64,647				152,626			127,447
Other income (expense)
	Interest income			12,303			5,128				24,013			8,974
	Interest expense			(5,648	)		(2,290	)			(11,241	)		(4,183	)
	Other income (expense), net			414			(445	)			363			18
		Total other income (expense)		7,069			2,393				13,135			4,809
Income before income taxes				83,482			67,040				165,761			132,256
Income tax provision				(14,730	)		(15,180	)			(31,659	)		(28,609	)
Net income				68,752			51,860				134,102			103,647
	Net income attributable to noncontrolling interests			412			542				288			608
Net income attributable to Itron, Inc.			$	68,340		$	51,318			$	133,814		$	103,039
Net income per common share - Basic			$	1.50		$	1.12			$	2.94		$	2.25
Net income per common share - Diluted			$	1.47		$	1.10			$	2.89		$	2.22
Weighted average common shares outstanding - Basic				45,633			45,745				45,486			45,698
Weighted average common shares outstanding - Diluted				46,380			46,526				46,276			46,441

ITRON, INC.
SEGMENT INFORMATION
(Unaudited, in thousands)
			Three Months Ended June 30,							Six Months Ended June 30,
				2025			2024				2025			2024
Product revenues
	Device Solutions		$	111,939		$	117,929			$	237,326		$	243,837
	Networked Solutions			379,481			387,351				754,003			768,656
	Outcomes			25,764			27,627				48,996			48,236
		Total Company	$	517,184		$	532,907			$	1,040,325		$	1,060,729
Service revenues
	Device Solutions		$	821		$	621			$	1,305		$	1,465
	Networked Solutions			29,453			25,353				57,663			51,564
	Outcomes			59,303			50,188				114,619			98,753
		Total Company	$	89,577		$	76,162			$	173,587		$	151,782
Total revenues
	Device Solutions		$	112,760		$	118,550			$	238,631		$	245,302
	Networked Solutions			408,934			412,704				811,666			820,220
	Outcomes			85,067			77,815				163,615			146,989
		Total Company	$	606,761		$	609,069			$	1,213,912		$	1,212,511
Gross profit
	Device Solutions		$	33,591		$	31,231			$	71,344		$	61,295
	Networked Solutions			157,243			152,157				305,957			303,182
	Outcomes			32,784			27,072				63,536			51,362
		Total Company	$	223,618		$	210,460			$	440,837		$	415,839
Operating income
	Device Solutions		$	25,454		$	23,725			$	55,925		$	45,428
	Networked Solutions			120,999			117,444				237,108			234,122
	Outcomes			15,687			10,651				30,017			19,742
	Corporate unallocated			(85,727	)		(87,173	)			(170,424	)		(171,845	)
		Total Company	$	76,413		$	64,647			$	152,626		$	127,447
Total Gross Margin				36.9	%		34.6	%			36.3	%		34.3	%

ITRON, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)			June 30, 2025				December 31, 2024
ASSETS
Current assets
	Cash and cash equivalents		$	1,224,257			$	1,051,237
	Accounts receivable, net			340,321				350,473
	Inventories			283,297				270,725
	Other current assets			140,998				143,457
		Total current assets		1,988,873				1,815,892
Property, plant, and equipment, net				115,595				115,428
Deferred tax assets, net				318,595				310,280
Other long-term assets				42,460				41,827
Operating lease right-of-use assets, net				35,411				28,957
Intangible assets, net				34,426				43,109
Goodwill				1,088,408				1,052,130
		Total assets	$	3,623,768			$	3,407,623
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable		$	123,127			$	144,929
	Other current liabilities			62,283				61,241
	Wages and benefits payable			106,837				137,384
	Taxes payable			13,636				19,689
	Current portion of debt, net			458,334				—
	Current portion of warranty			13,312				14,302
	Unearned revenue			195,530				150,720
		Total current liabilities		973,059				528,265
Long-term debt, net				787,023				1,242,424
Long-term warranty				7,455				7,839
Pension benefit obligation				65,864				59,537
Deferred tax liabilities, net				661				565
Operating lease liabilities				27,061				25,350
Other long-term obligations				128,221				132,215
		Total liabilities		1,989,344				1,996,195
Equity
	Common stock			1,728,667				1,689,835
	Accumulated other comprehensive loss, net			(59,869	)			(109,931	)
	Accumulated deficit			(55,490	)			(189,304	)
		Total Itron, Inc. shareholders' equity		1,613,308				1,390,600
	Noncontrolling interests			21,116				20,828
		Total equity		1,634,424				1,411,428
		Total liabilities and equity	$	3,623,768			$	3,407,623

ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)			Six Months Ended June 30,
				2025				2024
Operating activities
	Net income		$	134,102			$	103,647
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization of intangible assets		24,182				26,263
		Non-cash operating lease expense		5,843				7,634
		Stock-based compensation		33,396				21,845
		Amortization of prepaid debt fees		3,581				1,867
		Deferred taxes, net		(9,664	)			(8,725	)
		(Gain) loss on sale of business		79				(42	)
		Restructuring, non-cash		(25	)			(171	)
		Other adjustments, net		(354	)			(591	)
Changes in operating assets and liabilities, net of acquisition and sale of business:
	Accounts receivable			18,789				(13,557	)
	Inventories			(7,413	)			(13,216	)
	Other current assets			6,409				(510	)
	Other long-term assets			3,479				(1,885	)
	Accounts payable, other current liabilities, and taxes payable			(31,868	)			(7,128	)
	Wages and benefits payable			(34,884	)			(28,700	)
	Unearned revenue			46,431				39,039
	Warranty			(1,876	)			810
	Restructuring			(10,252	)			(14,628	)
	Other operating, net			(11,153	)			(18,927	)
		Net cash provided by operating activities		168,802				93,025
Investing activities
	Net proceeds related to the sale of business			—				405
	Acquisitions of property, plant, and equipment			(10,656	)			(14,255	)
	Business acquisitions, net of cash and cash equivalents acquired			—				(34,126	)
	Other investing, net			5				156
		Net cash used in investing activities		(10,651	)			(47,820	)
Financing activities
	Proceeds from borrowings			—				805,000
	Issuance of common stock			5,436				2,972
	Payments on call spread for convertible offering			—				(108,997	)
	Repurchase of common stock			—				(100,000	)
	Prepaid debt fees			(178	)			(21,495	)
	Other financing, net			(507	)			(641	)
		Net cash provided by financing activities		4,751				576,839
Effect of foreign exchange rate changes on cash and cash equivalents				10,118				(3,454	)
Increase in cash and cash equivalents				173,020				618,590
Cash and cash equivalents at beginning of period				1,051,237				302,049
Cash and cash equivalents at end of period			$	1,224,257			$	920,639

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, free cash flow, and constant currency. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and other companies may define such measures differently. For a reconciliation of each non-GAAP measure to the most comparable financial measure prepared and presented in accordance with GAAP, please see the table captioned Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures.      

We use these non-GAAP financial measures for financial and operational decision making and/or as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management's internal comparisons to our historical performance, as well as comparisons to our competitors' operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and certain discrete cash and non-cash charges, such as restructuring, (gain) loss on sale of business, or acquisition and integration related expenses. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.

Non-GAAP operating expenses and non-GAAP operating income – We define non-GAAP operating expenses as operating expenses excluding certain expenses related to the amortization of intangible assets, restructuring, (gain) loss on sale of business, and acquisition and integration related expenses. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, (gain) loss on sale of business, and acquisition and integration related expenses. Acquisition and integration related expenses include costs, which are incurred to affect and integrate business combinations, such as professional fees, certain employee retention and salaries related to integration, severances, contract terminations, travel costs related to knowledge transfer, system conversion costs, and asset impairment charges. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are not related to our core operating results. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods, expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expenses and non-GAAP operating income versus operating expenses and operating income calculated in accordance with GAAP. We compensate for these limitations by providing specific information about the GAAP amounts excluded from non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and operating income.

Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, (gain) loss on sale of business, acquisition and integration related expenses, and the tax effect of excluding these expenses. We define non-GAAP diluted EPS as non-GAAP net income divided by diluted weighted-average shares outstanding during the period calculated on a GAAP basis and then reduced to reflect any anti-dilutive impact of the convertible notes hedge transactions. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income attributable to Itron, Inc. and GAAP diluted EPS.

For interim periods the budgeted annual effective tax rate (AETR) is used, adjusted for any discrete items, as defined in Accounting Standards Codification (ASC) 740 - Income Taxes. The budgeted AETR is determined at the beginning of the fiscal year. The AETR is revised throughout the year based on changes to our full-year forecast. If the revised AETR increases or decreases by 200 basis points or more from the budgeted AETR due to changes in the full-year forecast during the year, the revised AETR is used in place of the budgeted AETR beginning with the quarter the 200 basis point threshold is exceeded and going forward for all subsequent interim quarters in the year. We continue to assess the AETR based on latest forecast throughout the year and use the most recent AETR anytime it increases or decreases by 200 basis points or more from the prior interim period.

Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization, restructuring, (gain) loss on sale of business, acquisition and integration related expenses, and (c) excluding income tax provision or benefit. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. We compensate for these limitations by providing a reconciliation of this measure to GAAP net income.

Free cash flow – We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of adjusted EBITDA apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts in the reconciliation.

Constant currency – We refer to the impact of foreign currency exchange rate fluctuations in our discussions of financial results, which references the differences between the foreign currency exchange rates used to translate operating results from the entity's functional currency into U.S. dollars for financial reporting purposes. We also use the term "constant currency", which represents financial results adjusted to exclude changes in foreign currency exchange rates as compared with the rates in the comparable prior year period. We calculate the constant currency change as the difference between the current period results and the comparable prior period's results restated using current period foreign currency exchange rates.

The tables below reconcile the non-GAAP financial measures of operating expenses, operating income, net income, diluted EPS, adjusted EBITDA, and free cash flow with the most directly comparable GAAP financial measures.

ITRON, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share data)
TOTAL COMPANY RECONCILIATIONS				Three Months Ended June 30,							Six Months Ended June 30,
					2025			2024				2025			2024
	NON-GAAP OPERATING EXPENSES
		GAAP operating expenses		$	147,205		$	145,813			$	288,211		$	288,392
			Amortization of intangible assets		(4,543	)		(4,511	)			(9,022	)		(8,497	)
			Restructuring		(1,237	)		99				(684	)		(99	)
			Gain (loss) on sale of business		—			65				(79	)		42
			Acquisition and integration		(33	)		(90	)			(84	)		(408	)
		Non-GAAP operating expenses		$	141,392		$	141,376			$	278,342		$	279,430
	NON-GAAP OPERATING INCOME
		GAAP operating income		$	76,413		$	64,647			$	152,626		$	127,447
			Amortization of intangible assets		4,543			4,511				9,022			8,497
			Restructuring		1,237			(99	)			684			99
			(Gain) loss on sale of business		—			(65	)			79			(42	)
			Acquisition and integration		33			90				84			408
		Non-GAAP operating income		$	82,226		$	69,084			$	162,495		$	136,409
	NON-GAAP NET INCOME & DILUTED EPS
		GAAP net income attributable to Itron, Inc.		$	68,340		$	51,318			$	133,814		$	103,039
			Amortization of intangible assets		4,543			4,511				9,022			8,497
			Amortization of debt placement fees		1,757			935				3,494			1,779
			Restructuring		1,237			(99	)			684			99
			(Gain) loss on sale of business		—			(65	)			79			(42	)
			Acquisition and integration		33			90				84			408
			Income tax effect of non-GAAP adjustments		(796	)		(588	)			(1,953	)		(387	)
		Non-GAAP net income attributable to Itron, Inc.		$	75,114		$	56,102			$	145,224		$	113,393
		Non-GAAP diluted EPS		$	1.62		$	1.21			$	3.14		$	2.44
		Non-GAAP weighted average common shares outstanding - Diluted			46,380			46,526				46,276			46,441
	ADJUSTED EBITDA
		GAAP net income attributable to Itron, Inc.		$	68,340		$	51,318			$	133,814		$	103,039
			Interest income		(12,303	)		(5,128	)			(24,013	)		(8,974	)
			Interest expense		5,648			2,290				11,241			4,183
			Income tax provision		14,730			15,180				31,659			28,609
			Depreciation and amortization		12,114			13,519				24,182			26,263
			Restructuring		1,237			(99	)			684			99
			(Gain) loss on sale of business		—			(65	)			79			(42	)
			Acquisition and integration		33			90				84			408
		Adjusted EBITDA		$	89,799		$	77,105			$	177,730		$	153,585
	FREE CASH FLOW
		Net cash provided by operating activities		$	96,685		$	51,717			$	168,802		$	93,025
			Acquisitions of property, plant, and equipment		(6,017	)		(7,110	)			(10,656	)		(14,255	)
		Free Cash Flow		$	90,668		$	44,607			$	158,146		$	78,770

FAQ

What were Itron's (ITRI) Q2 2025 earnings per share?

Itron reported GAAP diluted EPS of $1.47 and non-GAAP diluted EPS of $1.62 for Q2 2025, representing increases of $0.37 and $0.41 per share year-over-year, respectively.

How much revenue did Itron (ITRI) generate in Q2 2025?

Itron generated total revenue of $607 million in Q2 2025, compared to $609 million in the prior year period.

What is Itron's (ITRI) financial outlook for full-year 2025?

Itron updated its full-year 2025 outlook, projecting revenue between $2.35-2.4 billion and non-GAAP diluted EPS between $6.00-6.20.

What was Itron's (ITRI) backlog at the end of Q2 2025?

Itron's total backlog at the end of Q2 2025 was $4.5 billion, up from $4.1 billion in the prior year.

How much free cash flow did Itron (ITRI) generate in Q2 2025?

Itron generated $91 million in free cash flow during Q2 2025, an increase of $46 million compared to $45 million in the prior year.