Itron (ITRI) 1 Aug 24 2024 Q2 Earnings call transcript

In a recent earnings call, Itron Inc. reported a robust second-quarter performance, showcasing a strong financial foundation and strategic initiatives for future growth. The company, known for its innovative technology in the energy and water industries, demonstrated a commendable revenue growth of 13% compared to the previous year. This growth marks the seventh consecutive quarter of revenue increases and sets a record for quarterly revenue in the Networked Solutions and Outcomes segments.

Operational Highlights and Financial Performance

Itron reported a revenue of $609 million, with adjusted EBITDA of $77 million and non-GAAP earnings per share of $1.21. The company's backlog at the end of the second quarter stood at $4.1 billion, with bookings for the quarter totaling $447 million. This bookings figure is below the company's full-year target, but with more than $1 billion of customer awards in progress, the company expects to maintain a disciplined approach to bookings, aiming for an annual book-to-bill ratio of 1:1 or better.

Strategic Initiatives and Customer Adoption

Itron's strategic initiatives, including the deployment of the Grid Edge Intelligence platform, are gaining traction. Notable additions to the company's backlog include Rochester Public Utilities' commitment to upgrade to the latest Grid Edge Intelligence solution, FirstEnergy's expansion of advanced metering infrastructure, and Spire Energy's addition of 100,000 Intelis gas endpoints. These initiatives showcase Itron's leadership in addressing the complex challenges faced by utility companies in power generation and distribution, particularly in the context of increasing renewable energy adoption and the integration of electric vehicles.

Looking Ahead

For the third quarter of 2024, Itron anticipates revenue to be between $590 million to $600 million, with non-GAAP EPS expected to range from $1.10 to $1.20 per diluted share. The company also revised its full-year 2024 outlook, anticipating revenue to be within a range of $2.385 billion to $2.415 billion, representing a 10% increase from 2023. This positive outlook is driven by continued customer demand and strong operational execution.

Analyst Questions and Insights

During the call, analysts asked insightful questions about the company's growth trajectory, operational efficiency, and strategic initiatives. Notably, the discussion around the Grid Edge Intelligence platform and its role in addressing grid resilience and reliability in the face of extreme weather events highlighted the company's innovative approach to meeting the evolving needs of utility companies.

Investor Confidence and Future Outlook

The earnings call provided a comprehensive overview of Itron's financial health and strategic initiatives, instilling confidence in investors. The company's commitment to innovation, operational efficiency, and customer-focused solutions bodes well for its future growth prospects. As Itron continues to navigate the dynamic landscape of the energy and water industries, its strong financial performance and strategic focus position it well for continued success.