Slides
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October 27, 2026©2026 ITRON CONFIDENTIAL PROPRIETARY Third Quarter 2026 Earnings Conference Call 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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©2026 ITRON CONFIDENTIAL PROPRIETARY 3 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 2025 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. Forward Looking Statements Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 4 » Revenue of $599 million » Annual Recurring Revenue of $423 million » Adjusted EBITDA of $115 million » Non-GAAP diluted EPS of $1.94 » Free cash flow of $96 million Third Quarter 2026 Financial Summary Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 5 » Market environment is dynamic and constructive » Adoption of Grid Edge Intelligence continues to scale » Relentless focus on profitability and cash flow » Energy and water infrastructure modernization remains a long -term, durable trend Third Quarter 2026 Market Commentary Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 6 » Q3 2026 bookings of $482 million » Book to bill of 0.80 » TTM book to bill of 0.97 » Ending backlog of $4.3 billion Bookings and Backlog $ in billions Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 7 $ in millions (except per share amounts) Q3 2026 Q3 2025 Change Revenue $599.3 $581.6 3% Change in constant currency 3% Gross margin 40.9% 37.7% 320 bps Operating income $95.5 $81.8 17% Net income attributable to Itron, Inc. $71.4 $65.6 9% Earnings per share – diluted $1.61 $1.41 14% » Revenue increased due to continued growth in Outcomes and the contribution from Resiliency Solutions » Gross margin of 40.9% up 320 bps driven by favorable customer and product mix, operational efficiencies, and cost discipline » GAAP operating income increased due to higher gross profit » GAAP net income attributable to Itron, Inc. increased due to higher operating income Consolidated GAAP Results: Q3 2026 Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 8 $ in millions (except per share amounts) Q3 2026 Q3 2025 Change Adjusted gross profit $247.4 $219.5 13% Adjusted gross margin 41.3% 37.7% 350 bps Non-GAAP operating income $106.8 $89.2 20% Non-GAAP operating margin 17.8% 15.3% 250 bps Non-GAAP net income attributable to Itron, Inc. $86.3 $71.8 20% Adjusted EBITDA $114.5 $97.2 18% Adjusted EBITDA margin 19.1% 16.7% 240 bps Non-GAAP earnings per share - diluted $1.94 $1.54 26% Net cash provided by operating activities $102.0 $117.8 (13)% Free cash flow $95.5 $113.4 (16)% » Non-GAAP operating income increased due to higher gross profit, partially offset by higher operating expenses » Non-GAAP net income attributable to Itron, Inc. increased primarily due to higher non -GAAP operating income and lower non-GAAP taxes » Free cash flow decreased primarily due to changes in working capital, higher cash tax payments and lower interest income Consolidated Non-GAAP & Cash Results: Q3 2026 Reconciliation of GAAP to non-GAAP results in appendix Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 9 Revenue Year-Over-Year Bridge: Q3 2026 (1)% (1)% 9% N/A 3% $ in millions and includes rounding. Segment changes in constant currency Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 10 Non-GAAP EPS Year-Over-Year Bridge: Q3 2026 (1) Share count & Other includes share count, total FX variance, and other (1) Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 11 Revenue decreased 2% and 1% in constant currency » Lower legacy gas product sales Adj gross margin increased 450 bps » Favorable overall product mix » Operational efficiencies Adj operating margin increased 440 bps » Fall through of higher margin mix Device Solutions Segment: Q3 2026 $ in millions, actual currency Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 12 Revenue decreased 1% » Timing of project deployments Adj gross margin increased 250 bps » Favorable customer mix » Operational efficiencies and cost management Adj operating margin increased 250 bps » Fall through of higher margin mix Networked Solutions Segment: Q3 2026 $ in millions, actual currency Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 13 Revenue increased 9% » Increased services revenue Adj gross margin increased 110 bps » Higher margin revenue mix » Operational efficiencies Adj operating margin increased 50 bps Outcomes Solutions Segment: Q3 2026 $ in millions, actual currency Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 14 Revenue was $16 million Adj gross margin was 74.4% Adj operating margin was 26.2% New segment as of December 31, 2025 » Includes Urbint and Locusview » Locusview acquisition closed January 5, 2026 Resiliency Solutions Segment: Q3 2026 $ in millions, actual currency Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 15 Debt » Net leverage 1.9x as of September 30, 2026 Free Cash Flow » Free cash flow of $96M in Q3 2026 Debt and Liquidity Overview: September 30, 2026 Q3 2026 Earnings Conference Call | $ in millions and includes rounding. Debt values exclude amortization of debt fees
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©2026 ITRON CONFIDENTIAL PROPRIETARY 16 Revenue of $621 - $636 million » At the midpoint, up $57 million or 10% vs. Q4 2025 Non-GAAP diluted EPS of $1.70 - $1.80 » At the midpoint, down $0.71 or 29% vs. Q4 2025 » Normalized for tax rate and interest income, up $0.14 or 9% at the midpoint Assumptions » Euro/USD of $1.13 » Effective Non-GAAP tax rate of 22% » Trade policies as of mid-October 2026 Current Outlook: Q4 2026 Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 17 Current Outlook: Full Year 2026 Update Q3 2026 Earnings Conference Call | Revenue of $2.37 - $2.385 billion » At the midpoint, up $11 million or 0.4% vs. 2025 Non-GAAP diluted EPS of $6.72 - $6.82 » At the midpoint, down $0.36 or 5% vs. 2025 » Normalized for tax rate and interest income, up $0.81 or 14% at the midpoint
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Appendix
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©2026 ITRON CONFIDENTIAL PROPRIETARY 19 Revenue$ in millions (except per share amounts) Q3 2026 YoY Change YoY Change Excluding FX YTD 2026 YoY Change YoY Change Excluding FX Device Solutions $101.5 (2.0)% (1.3)% $337.3 (1.4)% (4.7)% Networked Solutions $389.5 (1.1)% (1.0)% $1,079.4 (10.5)% (10.7)% Outcomes $92.2 9.4% 9.1% $284.6 14.8% 14.0% Resiliency Solutions $16.1 N/A N/A $47.9 N/A N/A Total $599.3 3.0% 3.2% $1,749.2 (2.6)% (3.5)% Non-GAAP EPS - diluted $1.94 $0.40 $0.40 $5.01 $0.33 $0.30 Average USD/Euro: $1.15 Q3 2026 vs. $1.17 Q3 2025 $1.16 YTD 2026 vs. $1.12 YTD 2025 FX Impact Summary Chart includes rounding Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 20 Resiliency Solutions Platform Strategy Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 21 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, adjusted gross profit, adjusted operating income, 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. Non-GAAP Financial Measures Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 22 NON-GAAP OPERATING EXPENSES GAAP operating expenses $149,382 $137,762 $472,698 $425,973 Amortization of intangible assets (1) (8,460) (4,403) (25,110) (13,425) Restructuring 102 (188) (345) (872) Loss on sale of business — — — (79) Strategic initiative (133) (1,566) (608) (1,566) Acquisition and integration (245) (1,286) (7,474) (1,370) Non-GAAP operating expenses $140,646 $130,319 $439,161 $408,661 GAAP to Non-GAAP Reconciliations NON-GAAP OPERATING INCOME GAAP operating income $95,488 $81,783 $239,131 $234,409 Amortization of intangible assets 11,030 4,403 32,745 13,425 Restructuring (102) 188 345 872 Loss on sale of business — — — 79 Strategic initiative 133 1,566 608 1,566 Acquisition and integration 245 1,286 7,474 1,370 Non-GAAP operating income $106,794 $89,226 $280,303 $251,721 TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) (1) Excludes amortization of core-developed technology intangible assets Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 23 NON-GAAP NET INCOME & DILUTED EPS GAAP net income attributable to Itron, Inc. $71,369 $65,613 $178,100 $199,427 Amortization of intangible assets 11,030 4,403 32,745 13,425 Amortization of debt placement fees 1,956 1,777 5,711 5,271 Restructuring (102) 188 345 872 Loss on sale of business — — — 79 Strategic initiative 133 1,566 608 1,566 Gain on sale of equity method investment — — (3,249) — Acquisition and integration 245 1,286 7,474 1,370 Income tax effect of non-GAAP adjustments 1,702 (3,021) 3,018 (4,974) Non-GAAP net income attributable to Itron, Inc. $86,333 $71,812 $224,752 $217,036 Non-GAAP diluted EPS $1.94 $1.54 $5.01 $4.68 GAAP weighted average common shares outstanding - Diluted 44,411 46,660 44,827 46,405 Effect of call option transaction - 2021 Notes — (34) — (11) Non-GAAP weighted average common shares outstanding - Diluted 44,411 46,626 44,827 46,394 GAAP to Non-GAAP Reconciliations TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 24 ADJUSTED EBITDA GAAP net income attributable to Itron, Inc. $71,369 $65,613 $178,100 $199,427 Interest income (7,194) (13,569) (19,107) (37,582) Interest expense 5,863 5,647 17,440 16,888 Income tax provision 25,750 24,478 66,092 56,137 Depreciation and amortization 18,440 12,039 55,602 36,221 Restructuring (102) 188 345 872 Loss on sale of business — — — 79 Strategic initiative 133 1,566 608 1,566 Acquisition and integration 245 1,286 7,474 1,370 Gain on sale of equity method investment — — (3,249) — Adjusted EBITDA $114,504 $97,248 $303,305 $274,978 GAAP to Non-GAAP Reconciliations TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) FREE CASH FLOW Net cash provided by operating activities $101,953 $117,829 $275,545 $286,631 Acquisitions of property, plant, and equipment (6,408) (4,421) (19,540) (15,077) Free Cash Flow $95,545 $113,408 $256,005 $271,554 Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 25 Device Solutions Networked Solutions Outcomes Resiliency Solutions Segments Subtotal Total revenues $101,520 $389,502 $92,241 $16,070 $599,333 Total cost of revenues 65,620 226,817 55,964 6,062 354,463 Gross profit 35,900 162,685 36,277 10,008 244,870 Gross margin 35.4 % 41.8 % 39.3 % 62.3 % 40.9 % Amortization of core-developed technology intangible assets $— $— $625 $1,945 $2,570 Adjusted gross profit 35,900 162,685 36,902 11,953 247,440 Adjusted gross margin 35.4 % 41.8 % 40.0 % 74.4 % 41.3 % GAAP to Non-GAAP Reconciliations TOTAL COMPANY RECONCILIATIONS Three Months Ended September 30, 2026 ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) Device Solutions Networked Solutions Outcomes Segments Subtotal Total revenues $103,622 $393,702 $84,301 $581,625 Total cost of revenues 71,615 238,941 51,524 362,080 Gross profit 32,007 154,761 32,777 219,545 Gross margin 30.9 % 39.3 % 38.9 % 37.7 % Amortization of core-developed technology intangible assets $— $— $— $— Adjusted gross profit 32,007 154,761 32,777 219,545 Adjusted gross margin 30.9 % 39.3 % 38.9 % 37.7 % Three Months Ended September 30, 2025 Q3 2026 Earnings Conference Call |
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©2026 ITRON CONFIDENTIAL PROPRIETARY 26 Device Solutions Networked Solutions Outcomes Resiliency Solutions Segments Subtotal Total revenues $337,342 $1,079,403 $284,550 $47,922 $1,749,217 Total cost of revenues 218,664 628,491 172,119 18,114 1,037,388 Gross profit 118,678 450,912 112,431 29,808 711,829 Gross margin 35.2 % 41.8 % 39.5 % 62.2 % 40.7 % Amortization of core-developed technology intangible assets $— $— $1,875 $5,760 $7,635 Adjusted gross profit 118,678 450,912 114,306 35,568 719,464 Adjusted gross margin 35.2 % 41.8 % 40.2 % 74.2 % 41.1 % GAAP to Non-GAAP Reconciliations TOTAL COMPANY RECONCILIATIONS Nine Months Ended September 30, 2026 ITRON, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share data) Device Solutions Networked Solutions Outcomes Segments Subtotal Total revenues $342,253 $1,205,368 $247,916 $1,795,537 Total cost of revenues 238,902 744,650 151,603 1,135,155 Gross profit 103,351 460,718 96,313 660,382 Gross margin 30.2 % 38.2 % 38.8 % 36.8 % Amortization of core-developed technology intangible assets $— $— $— $— Adjusted gross profit 103,351 460,718 96,313 660,382 Adjusted gross margin 30.2 % 38.2 % 38.8 % 36.8 % Nine Months Ended September 30, 2025 Q3 2026 Earnings Conference Call |