Itron (ITRI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $609 million, up 13% year-over-year, marking the seventh consecutive quarter of growth and record segment revenues in Networked Solutions and Outcomes.

• GAAP net income was $51.3 million, more than doubling from $24.2 million in Q2 2023; GAAP diluted EPS rose to $1.10 from $0.53.

• Adjusted EBITDA was $77 million, up 56% year-over-year; free cash flow was $45 million, up from $36 million.

• For the first half of 2024, revenues reached $1.21 billion, up 17% year-over-year, with net income of $103 million.

• Major developments included the $805 million convertible notes issuance, $100 million share repurchase, and the acquisition of Elpis2, Inc.

Financial highlights

• Q2 2024 revenue: $609 million (+13%); gross margin: 34.6% (up 250 bps); adjusted EBITDA: $77 million; non-GAAP net income: $56 million ($1.21 per diluted share).

• GAAP net income: $51.3 million; GAAP diluted EPS: $1.10.

• Free cash flow: $45 million, up from $36 million a year ago.

• Bookings totaled $447 million; ending backlog at $4.1 billion.

• YTD 2024 revenue: $1.21 billion (+17%); YTD non-GAAP EPS: $2.44, up 114%.

Outlook and guidance

• Q3 2024 revenue expected between $590 million and $600 million, with non-GAAP EPS guidance of $1.10–$1.20.

• Full-year 2024 revenue guidance raised to $2.385–$2.415 billion; non-GAAP EPS to $4.45–$4.65, both up from prior guidance and 2023 levels.

• Bookings expected to be weighted toward H2 2024, impacting 2025 revenue timing.

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

• Twelve-month backlog at June 30, 2024 was $1.8 billion.