Itron (NASDAQ:ITRI) reported fourth-quarter 2025 results that management said delivered “another quarter of record earnings and profitability,” supported by accelerating demand for Grid Edge Intelligence and strong execution across the business. The company posted revenue of $572 million, adjusted EBITDA of $99 million, non-GAAP EPS of $2.46, and free cash flow of $112 million.
Fourth-quarter results set profitability and cash records
Senior Vice President and CFO Joan Hooper said the fourth quarter set company records for gross margin, non-GAAP earnings per share, EBITDA, and free cash flow as a percentage of revenue. Revenue of $572 million came in above the company’s expected range but declined year over year due to planned portfolio changes and the timing of large project deployments. Gross margin improved sharply, rising 560 basis points versus the prior year on favorable customer and product mix.
Bookings, backlog, and segment performance
CEO Tom Deitrich said fourth-quarter bookings were $737 million, and total backlog ended the quarter at $4.5 billion. He highlighted record backlog in the Outcomes segment and pointed to several Grid Edge wins, including a multiyear, multi-application agreement extending a long-standing relationship with Exelon. Deitrich also cited work with an early adopter AMI customer to address operational continuity and affordability while bridging from legacy systems to next-generation technologies through Itron’s Utility IQ solution, as well as an expansion with a large Canadian utility for additional distributed intelligence capabilities.
By segment, Hooper said:
- Device Solutions revenue was $105 million, down 7% on a constant-currency basis due to an expected decline in legacy electricity products in EMEA and the timing of North American deployments. Adjusted gross margin was 34.4% and operating margin was 26.6%, both quarterly records for the segment.
- Network Solutions revenue was $352 million, down 15% year over year primarily due to deployment timing. Adjusted gross margin was 42% and operating margin was 32.2%, with both margins improving meaningfully due to customer and product mix.
- Outcomes revenue rose 22% on a constant-currency basis to a record $112 million, driven by increased delivery services and continued growth in recurring revenue. Adjusted gross margin was 41.7% and operating margin was 27%.
- Resiliency Solutions, a newly created segment, contributed $3 million of revenue beginning November 3 (the close date of the Urbint acquisition). The segment posted adjusted gross margin of 76% and a negative operating margin of 3.6% in the quarter.
Acquisitions drive new “Resiliency Solutions” segment
Deitrich said Itron closed acquisitions of Urbint, which provides AI-enhanced solutions for emergency preparedness and response, damage prevention, and worker safety, and Locusview, which provides digital construction management solutions focused on automating planning through closeout and capturing as-built infrastructure in the field. With both acquisitions closed, the company introduced Resiliency Solutions as a new reporting segment and positioned it as extending Itron’s reach “through every step of the asset lifecycle, from planning, to build-out, to operations, to maintenance and protection.”
In Q&A, Deitrich described barriers to entry for resiliency offerings as tied to field-service usage and data capture, calling the solutions “sticky” when thousands of workers use them. As an example, he said a recent winter storm led to “3.5 million hours of restoration usage” of the emergency preparedness and response solution. Hooper added she does not view Resiliency Solutions as seasonal, expecting revenue to be “pretty steady,” with growth as new subscription-based contracts are signed.
2025 recap, balance sheet update, and new ARR metric
For full-year 2025, Itron reported revenue of $2.37 billion, down 3% year over year. Hooper noted that 2024 included catch-up of previously constrained revenue that did not recur in 2025. The company introduced annual recurring revenue (ARR) as a new metric and said it ended 2025 at approximately $368 million.
Itron also reported full-year records for gross margin (37.7%), adjusted EBITDA ($374 million, or 15.8% of revenue), non-GAAP EPS ($7.13), and free cash flow ($383 million, or 16.2% of revenue).
At quarter-end, total debt was $1.265 billion and cash and equivalents were $1.02 billion. Hooper said cash declined $312 million sequentially, largely due to the $325 million Urbint acquisition and $100 million of stock buybacks, partially offset by $112 million of fourth-quarter free cash flow. The $525 million Locusview acquisition closed in the first quarter of 2026 and was not reflected in the quarter-end balance. Net leverage was 0.7x as of December 31.
2026 outlook: modest revenue growth, EPS pressure from acquisitions
For 2026, Itron guided revenue to a range of $2.35 billion to $2.45 billion, with the midpoint representing 1% growth versus 2025. The company guided non-GAAP EPS to $5.75 to $6.25, assuming a 22% effective tax rate. Hooper said that after normalizing taxes to 22% for both years, earnings at the midpoint are expected to be down about $0.32 year over year, driven by the two acquisitions.
Within the 2026 outlook, management included a revenue contribution of approximately $65 million to $70 million for the Resiliency Solutions segment, with gross margins around 70%. Hooper said the acquisitions are expected to be accretive to revenue growth, gross margins, and EBITDA in 2026, but dilutive to EPS due to reduced interest income after spending about $850 million on the two deals. The dilutive impact to 2026 EPS was estimated at about $0.38 per share, with management expecting the acquisitions to become EPS accretive by the end of 2027.
For the first quarter of 2026, Itron projected revenue of $565 million to $575 million, down 6% year over year, and non-GAAP EPS of $1.20 to $1.30. Hooper said lower interest income driven by the acquisitions reduces Q1 2026 EPS by about $0.13 per share.
On the demand environment, Deitrich said the company’s pipeline grew 27% from the end of 2024 to the end of 2025 and that he continued to see that pace into 2026. He said Outcomes backlog grew 58% year over year and is now over $1 billion. Deitrich also said the company’s 12-month backlog is “right around $1.6 billion,” up roughly $150 million from the prior quarter, and described ordering patterns as having normalized after delays seen mid-year.
About Itron (NASDAQ:ITRI)
Itron, Inc (NASDAQ: ITRI) is a global technology company that develops innovative solutions to measure, manage and analyze the use of energy and water. Its comprehensive portfolio includes smart meters, data collection devices, communication networks and advanced software applications designed to optimize utility operations and foster sustainable resource management. The company’s offerings enable utilities and cities to accurately monitor consumption patterns, streamline billing processes and improve grid reliability.
Itron’s product lineup spans a range of hardware and software solutions, from residential and commercial smart meters to meter data management systems (MDMS), networked communication platforms and analytics tools.
