Slides
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Third Quarter 2025 Earnings Conference Call October 30, 2025©2025 ITRON CONFIDENTIAL PROPRIETARY Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Paul Vincent – Vice President, Investor Relations
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Conference Call Agenda • CEO – Business and Operations Update • CFO – Financial Results and Outlook • Q&A
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©2025 ITRON CONFIDENTIAL PROPRIETARY 3 Forward Looking Statements This presentation contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this presentation. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek","project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plans, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws, regulations, tariffs, sanctions, trade policies and retaliatory responses, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including without limitation those resulting from extraordinary events or circumstances and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our 2024 Annual Report and other reports on file with the SEC. We undertake no obligation to update or revise any forward-looking statement, whether written or oral. Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 4 » Revenue of $582 million » Adjusted EBITDA of $97 million » Non-GAAP diluted EPS of $1.54 » Free cash flow of $113 million Third Quarter 2025 Financial Summary Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 5 Bookings and Backlog Q3 2025 Earnings Conference Call | » Q3 2025 bookings of $380 million » Book to bill of 0.65 » TTM book to bill of 1.15 » Ending backlog of $4.3 billion Chart in US$ billions
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©2025 ITRON CONFIDENTIAL PROPRIETARY 6 » Customers adapting to complex environment » Outcomes segment growth in recurring revenue prevails » Uncertainty and constraints resulting in slower pace of deployments » Urbint an ideal strategic fit and demonstration of our approach to inorganic growth Q3 2025 Earnings Conference Call | Third Quarter 2025 Performance Highlights
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©2025 ITRON CONFIDENTIAL PROPRIETARY 7 Consolidated GAAP Results: Q3 2025 » Revenue decreased due to portfolio optimization and the timing of project deployments » Gross margin of 37.7% up 360 bps due to customer and product mix » GAAP operating income increased due to higher gross profit » GAAP net income attributable to Itron, Inc. decreased due to higher GAAP income tax expense, partially offset by higher GAAP operating income ▪ Prior year income tax expense benefited from a favorable resolution of a foreign tax audit Q3 2025 Earnings Conference Call | $ in millions (except per share amounts) Q3 2025 Q3 2024 Change Revenue $581.6 $615.5 (5)% Change in constant currency (6)% Gross margin 37.7% 34.1% 360 bps Operating income $81.8 $73.9 11% Net income attributable to Itron, Inc. $65.6 $78.0 (16)% Earnings per share – diluted $1.41 $1.70 (17)%
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©2025 ITRON CONFIDENTIAL PROPRIETARY 8 » Increase in non-GAAP operating income due to higher gross profit » Non-GAAP net income attributable to Itron, Inc. decreased due to higher Non-GAAP income tax expense, partially offset by higher Non-GAAP operating income ▪ Prior year income tax expense benefited from a favorable resolution of a foreign tax audit » Free cash flow increased primarily due to improved working capital, decreased tax payments, and higher earnings Consolidated Non-GAAP & Cash Results: Q3 2025 Q3 2025 Earnings Conference Call | $ in millions (except per share amounts) Q3 2025 Q3 2024 Change Non-GAAP operating income $89.2 $79.0 13% Non-GAAP operating margin 15.3% 12.8% 250 bps Non-GAAP net income attributable to Itron, Inc. $71.8 $84.3 (15)% Adjusted EBITDA $97.2 $88.6 10% Adjusted EBITDA margin 16.7% 14.4% 230 bps Non-GAAP earnings per share - diluted $1.54 $1.84 (16)% Net cash provided by operating activities $117.8 $65.3 80% Free cash flow $113.4 $58.7 93% Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website.
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©2025 ITRON CONFIDENTIAL PROPRIETARY 9 Revenue Year-Over-Year Bridge: Q3 2025 Q3 2025 Earnings Conference Call | Chart in millions and includes rounding. Segment changes in constant currency. (19)% (6%) +10% (5)%
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©2025 ITRON CONFIDENTIAL PROPRIETARY 10 Non-GAAP EPS Year-Over-Year Bridge: Q3 2025 Q3 2025 Earnings Conference Call | FX & Other includes total FX variance, noncontrolling interest, share count, and rounding. US$ per share
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©2025 ITRON CONFIDENTIAL PROPRIETARY 11 Device Solutions Segment: Q3 2025 Revenue, gross margin and operating margin Revenue decreased 16% and 19% in constant currency » Decreased legacy EMEA electricity products » Decreased NAM water volumes Gross margin increased 370 bps » Favorable customer and product mix » Record quarterly gross margin Operating margin increased 240 bps » Fall through of gross profit » Partially offset by higher operating expense $ in millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 12 Networked Solutions Segment: Q3 2025 Revenue, gross margin and operating margin Revenue decreased 6% » Timing of project deployments Gross margin increased 340 bps » Favorable customer and product mix Operating margin increased 330 bps » Fall through of higher gross profit $ in millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 13 Outcomes Segment: Q3 2025 Revenue, gross margin and operating margin Revenue increased 11% and 10% in constant currency » Increased recurring revenue Gross margin increased 390 bps » Higher margin revenue mix Operating margin increased 520 bps » Fall through of higher gross profit » Higher operating leverage $ in millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 14 Debt » $460M 0% interest convertible notes, 2026 maturity » $805M 1.375% interest convertible notes, 2030 maturity Free Cash Flow and Liquidity » Free cash flow of $113M in Q3 2025 » Cash and equivalents of $1,332M » $750M revolver; 2030 maturity Debt and Liquidity Overview: September 30, 2025 US$M 1. Excludes amortization of debt fees 1 Q3 2025 Earnings Conference Call | 1
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©2025 ITRON CONFIDENTIAL PROPRIETARY 15 Q4 2025 Current Outlook Q3 2025 Earnings Conference Call | Revenue of $555 - $565 million » At the midpoint, down 9% vs. Q4 2024 Non-GAAP diluted EPS of $2.15 - $2.25 » At the midpoint, up $0.85 or 63% vs. Q4 2024 (discrete tax benefit in Q4 2025) » Normalized for tax rate, ~7% growth at the midpoint Assumptions: » Euro/USD of $1.16 » Effective Non-GAAP tax rate of -19% (inclusive of ~$39 million discrete tax benefit) » Trade policies as of mid October
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©2025 ITRON CONFIDENTIAL PROPRIETARY 16 2025 Full-Year Outlook Update February 2025 Outlook July 2025 Outlook Revised Outlook Revenue $2.4 - $2.5B $2.35 - $2.4B $2.35 - $2.36B Non-GAAP EPS $5.20 - $5.60 $6.00 - $6.20 $6.84 - $6.94 Revenue, at the midpoint, down 3% vs. 2024 » Normalized for $125 million supply chain catch-up in 2024, ~2% growth at the midpoint NG EPS, at the midpoint, up 13% vs. prior outlook and up 23% vs. 2024 » Assumes full-year effective Non-GAAP tax rate of 12% » Normalized for tax rate, ~16% growth at the midpoint Q3 2025 Earnings Conference Call |
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Appendix
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©2025 ITRON CONFIDENTIAL PROPRIETARY 18 Consolidated GAAP Results: YTD 2025 » Year over year revenue comparison includes H1'24 catch-up of previously constrained revenue » Gross margin of 36.8% up 260 bps due to customer and product mix » GAAP operating income increased due to higher gross profit » GAAP net income attributable to Itron, Inc. increased due to higher GAAP operating income and higher interest income, partially offset by higher tax expense. $ in millions (except per share amounts) YTD 2025 YTD 2024 Change Revenue $1,795.5 $1,828.0 (2)% Growth in constant currency (2)% Gross margin 36.8% 34.2% 260 bps Operating income $234.4 $201.4 16% Net income attributable to Itron, Inc. $199.4 $181.0 10% Earnings per share – diluted $4.30 $3.91 10% Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 19 Consolidated Non-GAAP & Cash Results: YTD 2025 » Increase in non-GAAP operating income due to higher gross profit » Non-GAAP net income increased due to higher non-GAAP operating income and higher interest income, partially offset by higher tax expense » Free cash flow increased primarily due to improved working capital, higher earnings, and decreased tax payments Reconciliation of GAAP to Non-GAAP results in Appendix and also available on our website. $ in millions (except per share amounts) YTD 2025 YTD 2024 Change Non-GAAP operating income $251.7 $215.4 17% Non-GAAP operating margin 14.0% 11.8% 220 bps Non-GAAP net income attributable to Itron, Inc. $217.0 $197.6 10% Adjusted EBITDA $275.0 $242.2 14% Adjusted EBITDA margin 15.3% 13.2% 210 bps Non-GAAP earnings per share - diluted $4.68 $4.27 10% Net cash provided by operating activities $286.6 $158.3 81% Free cash flow $271.6 $137.4 98% Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 20 Revenue Year-Over-Year Bridge: YTD 2025 Chart in millions and includes rounding. Segment changes in constant currency. Q3 2025 Earnings Conference Call | (8)% (2)% +11% (2)%
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©2025 ITRON CONFIDENTIAL PROPRIETARY 21 Non-GAAP EPS Year-Over-Year Bridge: YTD 2025 FX & Other includes total FX variance, noncontrolling interest, share count, and rounding. US$ per share Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 22 Device Solutions Segment: YTD 2025 Revenue, gross margin and operating margin Revenue decreased 7% and 8% in constant currency » Decreased legacy EMEA electricity products » Partially offset by growth in smart water sales Gross margin increased 450 bps » Favorable customer and product mix Operating margin increased 410 bps » Fall through of higher gross profit $ in Millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 23 Networked Solutions Segment: YTD 2025 Revenue, gross margin and operating margin Revenue decreased 3% and 2% in constant currency » H1'24 includes catch-up of previously constrained revenue » Timing of project deployments Gross margin increased 160 bps » Favorable customer and product mix Operating margin increased 160 bps » Fall through of higher gross profit $ in Millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 24 Outcomes Segment: YTD 2025 Revenue, gross margin and operating margin Revenue increased 11% » Increased recurring revenue and software licenses Gross margin increased 380 bps » Higher margin revenue mix Operating margin increased 500 bps » Fall through of higher gross profit » Higher operating leverage $ in Millions, actual currency Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 25 FX Impact Summary $ in Millions Average USD/Euro: $1.12 YTD 2025 vs $1.09 YTD 2024 Average USD/Euro: $1.17 Q3 2025 vs $1.10 Q3 2024 Revenue Q3 2025 YoY Change YoY Change Excluding FX Device Solutions $ 103.6 (15.6)% (19.0)% Networked Solutions $ 393.7 (5.5)% (5.6)% Outcomes $ 84.3 10.9 % 10.5 % Total $ 581.6 (5.5)% (6.3)% Non-GAAP EPS - diluted $ 1.54 $ (0.30) $ (0.31) Revenue YTD 2025 YoY Change YoY Change Excluding FX Device Solutions $ 342.3 (7.0)% (8.3)% Networked Solutions $ 1,205.4 (2.6)% (2.5)% Outcomes $ 247.9 11.2 % 11.0 % Total $ 1,795.5 (1.8)% (2.0)% Non-GAAP EPS - diluted $ 4.68 $ 0.41 $ 0.40 Chart includes rounding. Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 26 Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, free cash flow, and constant currency. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. When providing future outlooks and/or earnings guidance, a reconciliation of forward-looking non- GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring related expenses and their related tax effects without unreasonable effort. These costs are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in our quarterly press release. Q3 2025 Earnings Conference Call |
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©2025 ITRON CONFIDENTIAL PROPRIETARY 27 GAAP to Non-GAAP Reconciliations Q3 2025 Earnings Conference Call | ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 NON-GAAP OPERATING EXPENSES GAAP operating expenses $ 137,762 $ 135,665 $ 425,973 $ 424,057 Amortization of intangible assets (4,403) (4,814) (13,425) (13,311) Restructuring (188) 723 (872) 624 Loss on sale of business — (698) (79) (656) Strategic initiative (1,566) — (1,566) — Acquisition and integration (1,286) (248) (1,370) (656) Non-GAAP operating expenses $ 130,319 $ 130,628 $ 408,661 $ 410,058 NON-GAAP OPERATING INCOME GAAP operating income $ 81,783 $ 73,933 $ 234,409 $ 201,380 Amortization of intangible assets 4,403 4,814 13,425 13,311 Restructuring 188 (723) 872 (624) Loss on sale of business — 698 79 656 Strategic initiative 1,566 — 1,566 — Acquisition and integration 1,286 248 1,370 656 Non-GAAP operating income $ 89,226 $ 78,970 $ 251,721 $ 215,379
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©2025 ITRON CONFIDENTIAL PROPRIETARY 28 GAAP to Non-GAAP Reconciliations Q3 2025 Earnings Conference Call | ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 NON-GAAP NET INCOME & DILUTED EPS GAAP net income attributable to Itron, Inc. $ 65,613 $ 77,959 $ 199,427 $ 180,998 Amortization of intangible assets 4,403 4,814 13,425 13,311 Amortization of debt placement fees 1,777 1,759 5,271 3,538 Restructuring 188 (723) 872 (624) Loss on sale of business — 698 79 656 Strategic initiative 1,566 — 1,566 — Acquisition and integration 1,286 248 1,370 656 Income tax effect of non-GAAP adjustments (3,021) (504) (4,974) (891) Non-GAAP net income attributable to Itron, Inc. $ 71,812 $ 84,251 $ 217,036 $ 197,644 Non-GAAP diluted EPS $ 1.54 $ 1.84 $ 4.68 $ 4.27 GAAP weighted average common shares outstanding - Diluted 46,660 45,839 46,405 46,239 Effect of call option transaction - 2021 Notes (34) — (11) — Non-GAAP weighted average common shares outstanding - Diluted 46,626 45,839 46,394 46,239
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©2025 ITRON CONFIDENTIAL PROPRIETARY 29 GAAP to Non-GAAP Reconciliations Q3 2025 Earnings Conference Call | ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 ADJUSTED EBITDA GAAP net income attributable to Itron, Inc. $ 65,613 $ 77,959 $ 199,427 $ 180,998 Interest income (13,569) (13,420) (37,582) (22,394) Interest expense 5,647 5,605 16,888 9,788 Income tax provision 24,478 3,515 56,137 32,124 Depreciation and amortization 12,039 14,716 36,221 40,979 Restructuring 188 (723) 872 (624) Loss on sale of business — 698 79 656 Strategic initiative 1,566 — 1,566 — Acquisition and integration 1,286 248 1,370 656 Adjusted EBITDA $ 97,248 $ 88,598 $ 274,978 $ 242,183 FREE CASH FLOW Net cash provided by operating activities $ 117,829 $ 65,301 $ 286,631 $ 158,326 Acquisitions of property, plant, and equipment (4,421) (6,623) (15,077) (20,878) Free Cash Flow $ 113,408 $ 58,678 $ 271,554 $ 137,448
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Thank You Paul Vincent Vice President, Investor Relations 512-560-1172 paul.vincent@itron.com David Means Director, Investor Relations 737-242-8448 david.means@itron.com INVESTOR RELATIONS CONTACTS