ITRON, INC. Q1 FY2025 earnings call

• Itron performed well in Q1 with margin expansion and earnings growth due to favorable product mix and strong execution. • Bookings in Q1 were $530 million, book-to-bill 0.9:1, backlog near record levels with Network Solutions and Outcomes segments dominating. • Discussed tariff landscape, noting regional supply strategy with most manufacturing done regionally, and estimated EBITDA impact of tariffs for the year. • Joan Hooper provided consolidated GAAP and non-GAAP results, including Q2 revenue guidance of $605 million to $615 million midpoint flat year-over-year and Q2 non-GAAP EPS $1.30 to $1.40 midpoint ~12% growth year-over-year.

Device Solutions: Revenue of $126 million. Gross margin was 30% and operating margin was 24.2%, both segment records. Network Solutions: Revenue of $403 million, gross margin 36.9%, operating margin 28.8%. Outcomes: Revenue of $79 million, gross margin 39.2%, operating margin 18.2%. Outcomes revenue grew 14% year-over-year driven by increased recurring revenue and software licenses.

• Q2 revenue expected to be in the range of $605 million to $615 million, midpoint flat vs. prior year. • Q2 non-GAAP earnings per share expected in the range of $1.30 to $1.40 per diluted share, midpoint ~12% year-over-year growth. • Premature to update full-year guidance, normal practice is after second quarter earnings.

• Tariff environment is dynamic and could change, impacting EBITDA. • Macro environment uncertainty could affect future results, including potential drag on business later in the year.

Q: Noah Kaye asked about tariffs and full-year guidance.

A: Tom Deitrich said it's premature to update full-year guidance, but first and second quarters are ahead of expectations. Joan Hooper added Q1 plus Q2 midpoint EPS is up 10% vs. consensus.

Q: Ben Kallo asked about backlog and regulatory environment for software capitalization.

A: Tom Deitrich said demand environment unchanged, opportunities still there; outcomes growth is double-digit for multiple quarters, regulatory environment constructive for customers.

Q: Jeff Osborne asked about tariff details and CapEx.

A: Tom Deitrich said $15 million EBITDA impact includes current tariffs and mitigation measures, no material CapEx change expected.

Q: Joe Osha asked about Outcomes segment margins.

A: Joan Hooper said Outcomes segment margins are improving, still variability but continuing to grow year-over-year.

Q: Mark Strouse asked about tariff timing and mitigation.

A: Tom Deitrich said $15 million impact is net of mitigation, most in back half of year.

Q: Chip Moore asked about M&A and capital deployment.

A: Joan Hooper said priority is finding acquisitions to increase software content and drive outcomes growth.

Q: Austin Moeller asked about Outcomes revenue mix and grid edge solutions.

A: Tom Deitrich said Outcomes had ~70% recurring revenue in Q1, grid edge solutions help with grid resiliency and reliability.

Q: Scott Graham asked about tariff mitigation and Network Solutions gross margin.

A: Joan Hooper said tariff impact on Network Solutions was due to mix, only 20 basis points down, noise in the scheme of things.