Itron's Q1 2025 Earnings Call: Navigating Tariff Impacts, Growth Trajectories, and M&A Strategies

Tariff impact and mitigation efforts, outcomes segment growth and margins, M&A strategy and cash deployment are the key contradictions discussed in Itron's latest 2025Q1 earnings call.



Revenue and Earnings Growth:
- Itron reported revenue of $607 million for Q1 2025, with adjusted EBITDA of $88 million and non-GAAP earnings per share of $1.52.
- Growth was driven by favorable product mix, disciplined manufacturing, and meeting customer core needs for robust solutions.

Backlog and Bookings:
- The company's backlog stood at $4.7 billion, with bookings of $530 million for Q1, equating to a book-to-bill ratio of 0.9:1.
- This increase, compared to last year's bookings of $361 million, reflects strong customer adoption of Itron's grid edge intelligence platform and deployment of distributed intelligence solutions.

Segment Performance:
- Device Solutions segment reported revenue of $126 million with a record gross margin of 30% and operating margin of 24.2%.
- Improvement in margins was attributed to favorable product mix, shifting towards smart water sales, and lower operating expenses.

Tariff Impact:
- The estimated EBITDA impact for the year under the current tariff protocol is $15 million, net of mitigation measures like alternate sourcing and pricing adjustments.
- Despite the tariff environment's fluidity, the regional supply strategy and regional manufacturing have balanced the impact on Itron's bottom line.