Itron (ITRI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $607.2 million, up 1% year-over-year, with net income rising 27% to $65.5 million and adjusted EBITDA up 15% to $87.9 million.

• Achieved record gross margin of 35.8% and strong operating margin, driven by operational efficiencies and favorable product mix.

• Customer demand remains robust, especially for grid edge intelligence solutions, with continued high backlog and strong bookings.

• Strategic focus on operational execution, supply chain resilience, and recurring revenue growth positions the company well amid macroeconomic and trade policy uncertainty.

• Free cash flow nearly doubled to $67.5 million, supported by higher earnings and working capital improvements.

Financial highlights

• Q1 revenue was $607 million, up 1% year-over-year, with product revenues down 1% to $523.1 million and service revenues up 11% to $84 million.

• Adjusted EBITDA reached $88 million, up 15% year-over-year, with a record EBITDA margin of 14.5%.

• Non-GAAP EPS was $1.52, up $0.28 year-over-year; GAAP net income was $65.5 million ($1.42 per share).

• Free cash flow was $67.5 million, nearly double the prior year.

• Bookings were $530 million, with a book-to-bill ratio of 0.9 and backlog at $4.7 billion.

Outlook and guidance

• Q2 2025 revenue expected between $605–$615 million, flat year-over-year at the midpoint.

• Q2 non-GAAP EPS guidance is $1.30–$1.40, representing about 12% year-over-year growth at the midpoint.

• No update to full-year guidance at this time; management will revisit after Q2.

• Assumptions include EUR/USD at 1.13 and a 24% effective non-GAAP tax rate.

• Management expects existing cash, operations, and capital market access to be sufficient for funding activities and obligations for at least the next 12 months.