Stephens Raises ITRI Price Target to $130 Amid Improved EBITDA Outlook: Firm Bolsters Full-Year Estimates Amid Record Margins

Stephens raises Itron's price target to $130, up from $110, with an Equal Weight rating. The increase follows Itron's record-breaking margins in Q2, boosting full-year adjusted EBITDA expectations. Stephens also updated its 2025 EBITDA estimates, assuming a market-premium multiple. Itron specializes in energy and water measurement, management, and analysis solutions, with a market capitalization of approximately $5.63 billion. The company's financial health is underscored by strong revenue growth, profitability margins, and liquidity ratios.

Stephens, a leading financial services firm, has increased its price target for Itron, Inc. (NASDAQ: ITRI) to $130, up from $110, with an Equal Weight rating. This upward revision follows Itron's exceptional performance in the second quarter of 2025, which saw record-breaking margins and boosted full-year adjusted EBITDA expectations [1].

Key Financial Highlights

For the second quarter ended June 30, 2025, Itron reported:

- Revenue: $607 million, a slight decrease from $609 million in the same period last year.
- Gross Profit: $224 million, representing a 6% increase.
- GAAP Net Income Attributable to Itron, Inc.: $68 million, up by $17 million from the previous year.
- GAAP Diluted EPS: $1.47, an increase of $0.37 per share.
- Non-GAAP Diluted EPS: $1.62, an increase of $0.41 per share.
- Adjusted EBITDA: $90 million, a 16% increase.
- Free Cash Flow: $91 million, up by $46 million.

Operational Performance

Itron's revenue from Device Solutions decreased by 5% due to lower legacy electricity product sales, partially offset by increased water sales. Networked Solutions revenue saw a 1% decrease, while Outcomes revenue increased by 9% due to higher recurring revenue and software licenses. The company's gross margin improved to 36.9%, up 230 basis points from the previous year [2].

Future Outlook

For the third quarter of 2025, Itron expects revenue between $570 and $585 million and non-GAAP diluted EPS between $1.45 and $1.55. The full-year 2025 outlook has been updated to revenue between $2.35 to $2.4 billion and non-GAAP diluted EPS between $6.00 to $6.20 [1].

Analyst Insights

Stephens' analysts noted that Itron's performance in the second quarter was driven by record-breaking margins, profitability, and cash flow. The firm also highlighted the company's strong revenue growth and profitability margins, as well as its liquidity ratios, which underscore its robust financial health [3].

Conclusion

Itron's impressive second-quarter performance has led Stephens to raise its price target, reflecting the company's strong operational and financial results. Investors should closely monitor Itron's future earnings and guidance for further insights into its growth trajectory.

References

[1] https://www.tradingview.com/news/tradingview:861b91abc9554:0-itron-announces-second-quarter-2025-financial-results/
[2] https://finance.yahoo.com/news/itron-nasdaq-itri-reports-q2-140524498.html
[3] https://seekingalpha.com/news/4474363-itron-q2-2025-earnings-preview