Core Insights - Small-cap stocks showed marginal gains in Q4 2025, with the Russell 2000 Growth Index returning 13.01% and the Russell 2000 Value Index gaining 12.58% [1] - The investment management company anticipates a favorable year ahead for equity markets, highlighting potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending sectors for 2026 [1] Company-Specific Insights - Itron, Inc. (NASDAQ:ITRI) was identified as a major performance detractor, with a one-month return of -10.68% and a 12-month decline of 7.88%, closing at $89.36 per share on February 13, 2026 [2] - Itron, Inc. has a market capitalization of approximately $4.093 billion [2] - The company's stock performance was pressured due to softer than anticipated bookings, attributed to a temporary shift in utility customer priorities amid planning uncertainty and increased regulatory scrutiny [3] - Itron, Inc. is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding its shares at the end of Q3, up from 35 in the previous quarter [4]

Core Insights - Itron reported a revenue of $571.66 million for the quarter ended December 2025, reflecting a year-over-year decline of 6.7% while EPS increased to $2.46 from $1.35 in the same quarter last year, exceeding the Zacks Consensus Estimate for EPS by 12.55% [1] Revenue Performance - Revenue from Outcomes was $111.83 million, surpassing the four-analyst average estimate of $98.38 million, with a year-over-year increase of 22.6% [4] - Revenue from Device Solutions was $104.83 million, slightly above the average estimate of $95.82 million, but showed a year-over-year decline of 3.4% [4] - Revenue from Networked Solutions was $351.95 million, below the estimated $366.53 million, representing a year-over-year decrease of 14.8% [4] - Service revenues from Networked Solutions reached $29.09 million, exceeding the average estimate of $24.5 million, with a year-over-year increase of 13.1% [4] - Product revenues from Device Solutions were $104.18 million, above the average estimate of $96.46 million, but down 3% year over year [4] - Product revenues from Networked Solutions were $322.86 million, below the estimated $339.58 million, reflecting a year-over-year decline of 16.7% [4] - Total product revenues were $474.33 million, slightly below the average estimate of $480.12 million, with a year-over-year decrease of 10.9% [4] - Service revenues from Outcomes were $64.54 million, exceeding the average estimate of $60.15 million, with a year-over-year increase of 20.5% [4] - Service revenues from Device Solutions were $0.65 million, below the estimated $1.09 million, showing a significant year-over-year decline of 43.9% [4] - Total service revenues were $97.33 million, surpassing the average estimate of $85.75 million, with a year-over-year increase of 21% [4] - Product revenues from Outcomes were $47.29 million, exceeding the average estimate of $38.97 million, with a year-over-year increase of 25.8% [4] Stock Performance - Itron's shares have returned -10.7% over the past month, compared to a -1.4% change in the Zacks S&P 500 composite, indicating potential underperformance in the near term with a Zacks Rank of 4 (Sell) [3]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $572 million, with adjusted EBITDA of $99 million and non-GAAP EPS of $2.46, reflecting strong execution and demand for Grid Edge Intelligence [5][11] - Free cash flow reached $112 million in Q4, up from $70 million a year ago, indicating improved earnings growth and working capital management [12] - Full year 2025 revenue was $2.37 billion, down 3% year-over-year, attributed to the absence of catch-up revenue seen in 2024 [17] Business Line Data and Key Metrics Changes - Device Solutions revenue decreased by 7% year-over-year, primarily due to a decline in legacy electricity products [13] - Network Solutions revenue fell by 15% year-over-year, mainly due to project deployment timing [14] - Outcomes revenue increased by 22% year-over-year, driven by delivery services and recurring revenue growth [14] - The new Resiliency Solutions segment contributed $3 million in revenue since its inception in November 2025 [14] Market Data and Key Metrics Changes - Fourth quarter bookings totaled $737 million, with a backlog of $4.5 billion, indicating strong demand for Grid Edge solutions [7] - Annual recurring revenue (ARR) reached approximately $368 million at the end of Q4, up 20% year-over-year [30] Company Strategy and Development Direction - The company is focused on enhancing utility resiliency through strategic acquisitions, including Urbint and Locusview, which will expand its offerings in emergency preparedness and digital construction management [9][10] - Itron aims to support customers throughout the asset lifecycle, emphasizing the importance of data-driven solutions for grid transformation [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment for utilities is evolving, creating both opportunities and challenges, but remains confident in the company's strategic direction [23] - The company anticipates 2026 revenue to be between $2.35 billion and $2.45 billion, with non-GAAP EPS expected to range from $5.75 to $6.25 [19][20] Other Important Information - Total debt at the end of Q4 was $1.265 billion, with cash and equivalents at $1.02 billion, reflecting a decrease due to acquisitions and stock buybacks [18] - The company expects the two recent acquisitions to be accretive to revenue growth and gross margins but dilutive to EPS in 2026 [20][21] Q&A Session Summary Question: Update on utility demand and behavior trends - Management reported strong fourth quarter bookings of $737 million and noted that the market is constructive, with no further delays in project timelines [28][29] Question: Clarification on ARR metric - The ARR of $368 million at the end of Q4 is an annualized run rate, with expectations for continued growth in 2026 [31][35] Question: Barriers to entry in resiliency solutions - Management highlighted the stickiness of their solutions due to extensive field service usage, which enhances customer value and retention [44][46] Question: Revenue and margin seasonality in new segment - Management does not anticipate significant seasonality in the Resiliency Solutions segment, expecting steady growth over time [48] Question: Utility ordering patterns and project trends - Management indicated that ordering patterns have normalized, with a healthy book and ship business, particularly in the electricity sector [52][54] Question: Insights on pipeline growth and market share - Management noted a 27% increase in pipeline growth and indicated that the company is gaining market share in core markets [29][64] Question: Expectations for future bookings and growth - Management expressed confidence in the trajectory of the business, with a focus on the growing Outcomes backlog and normalized project activity [81][82]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $572 million, with adjusted EBITDA of $99 million and non-GAAP EPS of $2.46, reflecting strong execution and demand for Grid Edge Intelligence [5][11] - Free cash flow reached $112 million in Q4, up from $70 million a year ago, indicating improved earnings growth and working capital management [12] - GAAP net income was $102 million, or $2.21 per diluted share, compared to $58 million, or $1.26 in the prior year, driven by higher operating income and lower tax expense [11][12] Business Line Data and Key Metrics Changes - Device Solutions revenue decreased by 7% year-over-year, primarily due to a decline in legacy electricity products in EMEA [13] - Network Solutions revenue decreased by 15% year-over-year, mainly due to the timing of project deployments [13] - Outcomes revenue increased by 22% year-over-year, driven by growth in delivery services and recurring revenue [14] - The new Resiliency Solutions segment contributed $3 million in revenue since its acquisition of Urbint [14] Market Data and Key Metrics Changes - Fourth quarter bookings were $737 million, with a total backlog of $4.5 billion, indicating strong demand for Grid Edge solutions [7] - Outcomes backlog grew by 58% year-over-year, surpassing $1 billion, reflecting a positive trend in market demand [29] Company Strategy and Development Direction - The company is focused on enhancing utility resiliency through strategic acquisitions, including Urbint and Locusview, which will support customers throughout the asset lifecycle [9][10] - Itron aims to leverage its heritage in hardware and networks while expanding into high-growth areas driven by data, AI, software, and services [24] - The company emphasizes the importance of trusted data and operational intelligence in the ongoing grid transformation [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment for utilities is evolving rapidly, creating both opportunities and challenges [23] - The company anticipates 2026 revenue to be in the range of $2.35 billion to $2.45 billion, representing a slight growth compared to 2025 [19] - Non-GAAP EPS for 2026 is expected to be between $5.75 and $6.25, with a dilutive impact from recent acquisitions [20] Other Important Information - The company ended 2025 with approximately $368 million in annual recurring revenue (ARR), up 20% year-over-year [30] - Total debt was $1.265 billion, with cash and equivalents at $1.02 billion, reflecting a decrease in cash balance due to acquisitions and stock buybacks [18] Q&A Session Summary Question: Update on utility demand and behavior trends - Management reported strong fourth quarter bookings of $737 million, indicating a constructive market environment [28] Question: Clarification on ARR metric - The ARR run rate at the end of Q4 was $368 million, with expectations of mid-teens to 20% growth for 2026 [31][35] Question: Barriers to entry in resiliency solutions - The company highlighted the stickiness of its solutions due to extensive field service usage, which enhances customer value [44][46] Question: Trends in utility ordering patterns - Management noted that ordering patterns have normalized, with no significant cancellations, and the Book and Ship business remains strong [52] Question: Expectations for bookings and revenue growth - The company expects bookings to continue to grow, supported by a strong pipeline and increasing Outcomes backlog [81]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $572 million, with adjusted EBITDA of $99 million and non-GAAP EPS of $2.46, reflecting strong execution and demand for Grid Edge Intelligence [5][11] - Free cash flow reached $112 million, up from $70 million in the previous year, indicating improved earnings growth and working capital management [12] - Full year 2025 revenue was $2.37 billion, down 3% year-over-year, with a gross margin of 37.7% and adjusted EBITDA of $374 million [16][17] Business Line Data and Key Metrics Changes - Device Solutions revenue decreased by 7% year-over-year, primarily due to a decline in legacy electricity products [13] - Network Solutions revenue fell by 15% year-over-year, attributed to project deployment timing [13] - Outcomes revenue increased by 22% year-over-year, driven by delivery services and recurring revenue growth [13] - The new Resiliency Solutions segment contributed $3 million in revenue since its acquisition of Urbint [13] Market Data and Key Metrics Changes - Fourth quarter bookings totaled $737 million, with a backlog of $4.5 billion, indicating strong demand for Grid Edge solutions [6] - Annual recurring revenue (ARR) reached approximately $368 million, up 20% year-over-year [29] Company Strategy and Development Direction - The company is focused on enhancing utility resiliency through strategic acquisitions, including Urbint and Locusview, which will support customers throughout the asset lifecycle [9][10] - Itron aims to leverage its expertise in hardware and networks to drive growth in data, AI, software, and services, positioning itself as a leader in intelligent infrastructure [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the utility market is evolving, creating both opportunities and challenges, but remains confident in the company's strategic direction [21] - The company anticipates 2026 revenue to be between $2.35 billion and $2.45 billion, with non-GAAP EPS expected to range from $5.75 to $6.25 [18][19] Other Important Information - Total debt at the end of Q4 was $1.265 billion, with cash and equivalents at $1.02 billion, reflecting a decrease due to acquisitions and stock buybacks [17] - The company expects the new Resiliency Solutions segment to be accretive to revenue growth and EBITDA but dilutive to EPS in 2026 due to acquisition costs [19][20] Q&A Session Summary Question: Update on utility demand and behavior trends - Management reported strong fourth quarter bookings of $737 million and noted that the market is constructive, with no further delays in project timelines [27][28] Question: Barriers to entry in resiliency solutions and outcomes business - Management highlighted the stickiness of their solutions due to field service tools and the value generated from data capture during emergency responses [44][46] Question: Utility ordering patterns and Book and Ship business trends - Management indicated that ordering patterns have normalized, with good Book and Ship business continuing, particularly in the electricity space [52][54] Question: Forward guidance and backlog levels - Management stated that approximately 80% of the forward guidance is typically in backlog, with current levels reflecting a structural change in the business [63] Question: Revenue goals for 2027 - Management maintained the revenue target for 2027 but suggested it may lean towards the lower end of the previously stated range due to deployment complexities [80][81]

©2026 ITRON CONFIDENTIAL PROPRIETARY February 17, 2026 Fourth Quarter 2025 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 Conference Call Agenda • CEO – Business and Operations Update • CFO – Financial Results and 2026 Outlook • Q&A Forward Looking Statements This presentation contains, and our officers and representatives may from time to time make, "forward-looki ...

Revenue Performance - Total revenue for Q4 2025 was $572 million, a decrease of 7% compared to $613 million in Q4 2024, primarily due to portfolio optimization and project deployment timing [2]. - Outcomes revenue increased by 23% in Q4 2025, reaching a record level, driven by increased delivery services and recurring revenue [5]. - Total revenues for the three months ended December 31, 2025, were $571,657,000, a decrease of 6.7% compared to $612,864,000 for the same period in 2024 [27]. - Total revenues for the year ended December 31, 2025, reached $2.37 billion, a decrease from $2.44 billion in 2024, reflecting a decline of 2.7% [50]. Income and Earnings - GAAP net income for Q4 2025 was $102 million, or $2.21 per diluted share, compared to $58 million, or $1.26 per diluted share in Q4 2024, reflecting a significant increase due to higher operating income and a tax benefit [10]. - Non-GAAP net income for Q4 2025 was $113 million, or $2.46 per diluted share, up from $62 million, or $1.35 per diluted share in Q4 2024, driven by higher non-GAAP operating income [11]. - Net income for the year ended December 31, 2025, was $303,335,000, representing a 25.8% increase from $241,124,000 in 2024 [31]. - GAAP net income for the year ended December 31, 2025, was $301.06 million, compared to $239.10 million in 2024, representing a growth of 25.9% [47]. - The company reported a diluted EPS of $2.46 for Q4 2025, compared to $1.35 in Q4 2024, indicating a year-over-year increase of 82.2% [47]. Cash Flow and Financial Position - Free cash flow for Q4 2025 was $112 million, an increase of $41 million from $70 million in Q4 2024, primarily due to improved working capital and higher earnings [12]. - Free cash flow for Q4 2025 was $111.51 million, compared to $70.17 million in Q4 2024, indicating a significant increase of 58.8% [48]. - Cash and cash equivalents at the end of the period decreased to $1,020,397,000 from $1,051,237,000 at the end of 2024 [32]. Operational Metrics - Gross margin for Q4 2025 was 40.5%, an increase of 560 basis points from the prior year, attributed to customer and product mix [6]. - Adjusted gross profit for Q4 2025 was $232.81 million, compared to $213.88 million in Q4 2024, reflecting an increase of 8.8% [49]. - Adjusted gross profit for the total company increased to $232,814,000 for the three months ended December 31, 2025, up 8.8% from $213,880,000 in 2024 [27]. - Total operating expenses for Q4 2025 were $142.18 million, slightly down from $143.32 million in Q4 2024, a decrease of 0.8% [46]. Backlog and Future Outlook - Total backlog at the end of Q4 2025 was $4.5 billion, down from $4.7 billion in the prior year, with bookings totaling $0.7 billion for the quarter and $2.1 billion for the full year [13]. - The company expects Q1 2026 revenue to be between $565 million and $575 million, and full year 2026 revenue to be between $2.35 billion and $2.45 billion [16]. Strategic Initiatives - The company announced the acquisition of Locusview for $525 million, which closed in January 2026, aimed at enhancing AI-driven software solutions and recurring revenue [14]. - The company plans to continue focusing on strategic initiatives and acquisitions to enhance market presence and operational efficiency [35].

LIBERTY LAKE, Wash., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Itron, Inc. (NASDAQ:ITRI), which is innovating new ways for utilities and cities to manage energy and water, announced today financial results for its fourth quarter and full year ended Dec 31, 2025. Key results for the quarter and full year include (compared with the fourth quarter and full year of 2024): Revenue of $572 million and $2.4 billion, decreased 7% and 3%;GAAP net income attributable to Itron, Inc. of $102 million and $301 million, increased ...

Core Insights - U.S. small-cap equities experienced modest gains in Q4 2025, supported by attractive valuations, earnings recovery, and a shift from mega-cap stocks [1] - The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, underperforming the Russell 2000 Index's 2.19% total return [1] - Security selection positively impacted overall performance, while allocation effects detracted from it [1] Company-Specific Insights - Itron, Inc. (NASDAQ:ITRI) was identified as a major performance detractor for the Aristotle Small Cap Equity Fund in Q4 2025, with a one-month return of -10.68% and a 12-month decline of 7.88% [2] - Itron, Inc. has a market capitalization of $4.093 billion and is involved in manufacturing and distributing electric, water, and gas meters [2][3] - The stock sold off due to slower-than-anticipated regulatory approvals, but the company is expected to benefit from power grid modernization efforts in 2026 [3] - Itron, Inc. is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding its shares at the end of Q3 2025, an increase from 35 in the previous quarter [4] - While Itron, Inc. has potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Itron, Inc. (NASDAQ:ITRI) is one of the 12 best mid cap AI stocks to buy according to hedge funds. On February 3, Itron, Inc. (NASDAQ:ITRI) and Toumetis announced a project in Southern California to enhance power reliability and reduce wildfire risks. The project is being carried out under the EPIC program with San Diego Gas & Electric (SDG&E). The companies intend to improve electric reliability by restoring power more quickly when outages occur and preventing outages before they happen. The project combi ...