Itron Q2 Revenue Meets Expectations, Full-Year Sales Guidance Misses

Itron reported Q2 revenue of $606.8 million, flat YoY, and met Wall Street's expectations. However, next quarter's revenue guidance of $577.5 million was 7.5% below analyst estimates. The company's non-GAAP profit of $1.62 per share was 21.6% above consensus estimates. Itron's revenue guidance for the full year is $2.38 billion, below analyst estimates of $2.46 billion.

Itron Inc. (NASDAQ: ITRI) reported its second-quarter 2025 financial results on July 31, 2025, with mixed signals on revenue and profit. The company's revenue for the period was $607 million, flat year-over-year (YoY), and met Wall Street's expectations [1]. However, the company's revenue guidance for the third quarter of 2025 was $570-$585 million, 7.5% below analyst estimates. The company's non-GAAP profit of $1.62 per share was 21.6% above consensus estimates.

Itron's revenue for the second quarter of 2025 was $607 million, compared to $609 million in the same period last year. The company attributed the flat revenue to 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 [1].

Itron's gross margin for the second quarter of 2025 was 36.9%, up 230 basis points from the prior year. The company's GAAP operating income was $76 million, $12 million higher than the prior year, and non-GAAP operating income was $82 million, $13 million higher than the prior year. The increase in operating income was driven by higher gross profit [1].

Itron's 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 certain 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 [1].

Itron's free cash flow for the second quarter of 2025 was $91 million, up $46 million from the prior year. The increase in free cash flow was primarily due to higher earnings, higher interest income, and decreased tax payments [1].

Itron's outlook for the third quarter of 2025 is $570-$585 million in revenue and $1.45-$1.55 in non-GAAP diluted EPS. The company's full-year 2025 revenue guidance has been updated to $2.35 to $2.4 billion, below analyst estimates of $2.46 billion. Itron will host a conference call to discuss the financial results on July 31, 2025, at 10 a.m. EDT [1].

References:
[1] https://www.manilatimes.net/2025/07/31/tmt-newswire/globenewswire/itron-announces-second-quarter-2025-financial-results/2159846