Loading...
01/11 11:27
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. While non-GAAP EPS guidance was raised, revenue guidance was lowered, indicating potential market concerns. Record-high free cash flow and improved margins are positives, but the decline in network solutions revenue and uncertain project timelines are negatives. The Q&A section highlights strong demand and backlog growth but also mentions delays and vague management responses, which may cause investor caution. Given the company's market cap, the stock is likely to experience a neutral movement, balancing positive financial metrics against lowered revenue guidance and execution uncertainties.
Revenue $582 million, decreased year-over-year due to planned portfolio changes and the timing of large project deployments.
Gross Margin 37.7%, a company record and 360 basis points higher than last year due to favorable customer and product mix.
GAAP Net Income $66 million or $1.41 per diluted share, compared to $78 million or $1.70 per diluted share in the prior year. The decrease was due to higher tax expense, with the prior year benefiting from favorable resolution of a foreign tax audit.
Non-GAAP Operating Income $89 million or 15.3% of revenue, an all-time quarterly record, increased 13% year-over-year.
Adjusted EBITDA $97 million or 16.7% of revenue, an all-time record, increased 10% year-over-year.
Non-GAAP Net Income $72 million or $1.54 per diluted share, compared to $1.84 a year ago. Higher income tax expense more than offset higher non-GAAP operating income.
Free Cash Flow $113 million or 19.5% of revenue, a new company record, compared to $59 million a year ago. The increase reflects improved working capital, lower tax payments, and higher operational earnings growth.
Device Solutions Revenue $104 million, decreased 19% year-over-year on a constant currency basis due to the expected decline in legacy electricity products in EMEA and lower water volumes in North America.
Network Solutions Revenue $394 million, decreased 6% year-over-year, primarily due to the timing of project deployments.
Outcomes Revenue $84 million, increased 10% year-over-year on a constant currency basis due to the continued growth of recurring revenue.
Device Solutions Gross Margin 30.9%, a record, increased 370 basis points year-over-year due to favorable change in customer and product mix.
Network Solutions Gross Margin 39.3%, increased 340 basis points year-over-year due to improved customer and product mix.
Outcomes Gross Margin 38.9%, increased 390 basis points year-over-year due to a higher margin revenue mix and operating leverage.
Device Solutions Operating Margin 24%, increased 240 basis points year-over-year due to favorable change in customer and product mix.
Network Solutions Operating Margin 31%, increased 330 basis points year-over-year due to improved customer and product mix.
Outcomes Operating Margin 19.9%, increased 520 basis points year-over-year due to a higher margin revenue mix and operating leverage.
Distributed intelligence-enabled endpoints: Expanded to over 16 million deployed units by the end of Q3, with an additional 10 million units in backlog.
Licensed DI applications: Grew 119% year-over-year, reaching $20 million at the end of Q3.
Urbint acquisition: Announced acquisition of Urbint, a SaaS platform for emergency preparedness, damage prevention, and worker safety, expected to close in Q4 2025.
Opportunity pipeline: Expanded by over 25% since the start of the year, despite slower project conversions and bookings below expectations.
Federal funding impact: No project cancellations or decline in customer interest, but deployments introduce near-term market uncertainty.
Record financial performance: Achieved record gross margin of 37.7%, adjusted EBITDA of $97 million, and free cash flow of $113 million in Q3.
Segment profitability: Device solutions, network solutions, and outcomes segments all reported improved gross and operating margins due to favorable customer and product mix.
Portfolio optimization: Continued efforts to optimize product portfolio and global supply chain, contributing to record financial results.
Digital transformation positioning: Positioned to expand business alongside global infrastructure shifts in energy and water systems.
Accelerating load growth and rising costs for utilities: Utilities are facing challenges due to increasing load growth and rising costs, which complicate their operations and financial planning.
Heightened regulatory scrutiny: Utilities are under greater regulatory scrutiny, which is leading to more rigorous evaluation of project investments and could delay or alter project approvals.
Extended project deployment schedules: Customers are extending project deployment schedules, which could impact revenue recognition and cash flow timing for the company.
Lower-than-expected bookings in Q3: The company experienced lower-than-expected bookings in the third quarter, which has tempered year-end booking expectations and could impact future revenue.
Market uncertainty from federal funding actions: Recent federal funding actions have introduced greater near-term market uncertainty, adding complexity to customer decision-making and project timelines.
Decline in legacy electricity products in EMEA: Revenue from legacy electricity products in the EMEA region has declined, impacting the Device Solutions segment.
Lower water volumes in North America: The company experienced lower water volumes in North America, which negatively affected revenue in the Device Solutions segment.
Timing of large project deployments: Delays in the timing of large project deployments have impacted revenue in the Network Solutions segment.
Debt levels and upcoming acquisition costs: The company has $1.265 billion in total debt and is planning a $325 million all-cash acquisition, which could strain financial resources.
Year-End Bookings Expectations: Lower-than-expected Q3 bookings and heightened uncertainty have tempered year-end booking expectations. Achieving a 1:1 book-to-bill ratio for 2025 remains possible, but current dynamics are expected to persist, resulting in bookings below that target.
Opportunity Pipeline: The opportunity pipeline has expanded by over 25% since the start of the year, indicating long-term growth potential despite near-term booking challenges.
Urbint Acquisition: The $325 million all-cash acquisition of Urbint is expected to close in Q4 2025. Urbint's SaaS business model aligns with Itron's M&A priorities and offers solutions for emergency preparedness, damage prevention, and worker safety. Further details will be shared in the next quarterly call.
Q4 2025 Revenue and EPS Outlook: Revenue is anticipated to be between $555 million to $565 million, representing a 9% year-over-year decline. Non-GAAP EPS is expected to range from $2.15 to $2.25 per diluted share, with a negative effective tax rate of approximately 19% due to a favorable tax resolution.
2025 Full-Year Revenue and EPS Guidance: Full-year revenue is expected to range from $2.35 billion to $2.36 billion, down 3% versus 2024 due to $125 million of catch-up revenue in 2024. Normalizing for this, the midpoint reflects approximately 2% year-over-year growth. Non-GAAP EPS is projected to range from $6.84 to $6.94 per diluted share, up 23% versus 2024 or 16% when normalized for the tax rate.
2027 Targets and Long-Term Growth: Despite recent volatility, the long-term growth trajectory remains unchanged. The company is confident in achieving its 2027 targets, supported by record financial results, an optimized product portfolio, and a growing opportunity pipeline.
The selected topic was not discussed during the call.
The earnings call presents mixed signals. While non-GAAP EPS guidance was raised, revenue guidance was lowered, indicating potential market concerns. Record-high free cash flow and improved margins are positives, but the decline in network solutions revenue and uncertain project timelines are negatives. The Q&A section highlights strong demand and backlog growth but also mentions delays and vague management responses, which may cause investor caution. Given the company's market cap, the stock is likely to experience a neutral movement, balancing positive financial metrics against lowered revenue guidance and execution uncertainties.
The earnings call presents a positive outlook with strong financial metrics, including record gross margins, improved operating margins, and low net leverage. The Q&A section highlights management's confidence in future growth, despite some revenue delays due to macro factors. The company's strategic changes have led to higher-than-expected EBITDA margins, and optimistic guidance supports a positive sentiment. The market cap suggests a moderate reaction, resulting in a predicted stock price increase of 2% to 8%.
The earnings call presents a mixed picture: record revenue and bookings, strong financial metrics, and a new partnership are positives, while flat revenue guidance and tariff impacts pose risks. Q&A reveals management's cautious stance on guidance updates and tariff impacts, indicating uncertainty. The market cap of $4.56 billion suggests moderate volatility. Overall, the positives and negatives balance out, leading to a neutral prediction for stock price movement over the next two weeks.
The earnings call presents mixed signals. Financial performance shows modest growth in revenue and EPS, but guidance remains flat. Positive elements include strong free cash flow and a healthy balance sheet. However, macroeconomic uncertainties and competitive pressures pose risks. The Q&A reveals management's reluctance to update guidance or provide clarity on certain financial metrics, which may concern investors. Despite record bookings and partnerships, the market may react cautiously due to flat revenue outlook and potential tariff impacts. Given the company's mid-sized market cap, the stock price is likely to remain stable, resulting in a neutral sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
