ITRI · Itron, Inc.

Itron's Q1 2026 results showed revenue of $587 million, a 3% decline from $607 million in Q1 2025, primarily due to portfolio optimization in EMEA legacy electricity products and timing shifts in North American project deployments. Segment performance varied: Device Solutions revenue fell 1% (9% constant currency), Networked Solutions dropped 13% (14% constant currency) on deployment delays, while Outcomes grew 22% (20% constant currency) from recurring services, and new Resiliency Solutions contributed $16 million including post-Locusview acquisition (closed January 2026) and Urbint. Despite topline pressure, adjusted gross margin expanded 490 basis points to 40.7%--a record--driven by favorable customer/product mix and operational efficiencies, boosting gross profit. GAAP operating expenses rose to $169 million (+$28 million) from acquisitions, yielding GAAP operating income of $68 million (down $9 million), but Non-GAAP operating income increased to $84 million (+$4 million). Net income fell to $53 million ($1.18 EPS) from lower operating income and interest income, with Non-GAAP net income at $68 million ($1.49 EPS). CEO Tom Deitrich highlighted strong execution, projects ahead of schedule, and alignment with utility trends in grid resiliency. Backlog stood at $4.4 billion (down from $4.7 billion), with $476 million bookings. Q2 outlook: revenue $560-570 million, Non-GAAP EPS $1.25-1.35. Cash generation strengthened with $86 million operating cash flow and $79 million free cash flow, aided by lower taxes.