Itron(ITRI) - 2025 Q1 - Quarterly Results

Revenue Performance - Total first quarter revenue increased by 1% to $607 million, including a catch-up of previously constrained revenue from Q1 2024[3] - Device Solutions revenue decreased by 1%, while Networked Solutions revenue also decreased by 1% due to timing of shipments and project deployments[4] - Outcomes revenue increased by 14%, driven by higher recurring revenue and software licenses[4] Profitability Metrics - Gross margin improved to 35.8%, an increase of 180 basis points from the prior year, attributed to product mix and operational efficiencies[5] - GAAP operating income rose to$ 76 million, a $13 million increase from the prior year, due to higher gross profit and lower operating expenses[6] - Net income attributable to Itron, Inc. was$ 65 million, or $1.42 per diluted share, reflecting a$ 14 million increase compared to the previous year[7] - Non-GAAP operating income rose to $80,269 in Q1 2025, up from$ 67,325 in Q1 2024, reflecting a growth of 19.3%[42] - GAAP net income attributable to Itron, Inc. increased to $65,474 from$ 51,721, representing a growth of 26.5%[44] - Adjusted EBITDA rose to $87,931, up from$ 76,480, reflecting an increase of 15.5%[44] Cash Flow and Liquidity - Free cash flow increased to $67 million, up$ 33 million from the prior year, primarily due to higher earnings and interest income[10] - Net cash provided by operating activities was $72,117 in Q1 2025, up from$ 41,308 in Q1 2024, indicating a growth of 74.7%[29] - Free Cash Flow improved significantly to $67,478 compared to$ 34,163, marking an increase of 97.5%[44] - Cash and cash equivalents at the end of Q1 2025 were $1,123,267, significantly up from$ 300,606 at the end of Q1 2024[29] Balance Sheet Highlights - Total assets increased to $3,503,142 in Q1 2025, compared to$ 3,407,623 in Q1 2024, marking a growth of 2.8%[26] - Total liabilities decreased slightly to $1,994,063 in Q1 2025 from$ 1,996,195 in Q1 2024[26] - The total equity of Itron, Inc. increased to $1,509,079 in Q1 2025 from$ 1,411,428 in Q1 2024, showing a growth of 6.9%[26] Future Outlook - The outlook for Q2 2025 includes expected revenue between $605 million and$ 615 million, and non-GAAP diluted EPS between $1.30 and$ 1.40[15] Operational Changes - Interest income decreased to $(11,710) from$ (3,846), showing a decline of 204.5%[44] - Interest expense increased to $5,593 from$ 1,893, which is an increase of 195.5%[44] - Income tax provision rose to $16,929 from$ 13,429, reflecting an increase of 25.5%[44] - Depreciation and amortization slightly decreased to $12,068 from$ 12,744, a decline of 5.3%[44] - Restructuring costs changed from $198 to$ (553), indicating a shift in strategy[44] - Acquisition and integration costs decreased to $51 from$ 318, showing a reduction of 83.9%[44] Customer Demand and Market Position - Itron's leadership in grid edge intelligence solutions continues to drive customer demand for new technologies[2] Backlog and Bookings - Total backlog at the end of the quarter was $4.7 billion, compared to$ 4.3 billion in the prior year, with bookings totaling $530 million[11] Quarterly Comparison - Net income for Q1 2025 was$ 65,350, an increase of 26.2% compared to $51,787 in Q1 2024[28] - Non-GAAP diluted EPS increased to$ 1.52 in Q1 2025, compared to $1.24 in Q1 2024, representing a growth of 22.6%[42] - Non-GAAP operating expenses decreased to$ 136,950 in Q1 2025 from $138,054 in Q1 2024, a reduction of 0.8%[42] - The company reported an increase in unearned revenue to$ 187,812 in Q1 2025, compared to $150,720 in Q1 2024, reflecting a growth of 24.6%[26]