Highlights

  • Third quarter 2026 revenues were $599.3 million, against $581.6 million in 2025, and GAAP diluted EPS was $1.61.
  • Non-GAAP diluted EPS was $1.94 and adjusted EBITDA was $114.5 million, against $1.54 and $97.2 million in 2025.
  • Bookings were $482 million, and total backlog was $4.3 billion at September 30, 2026, with twelve-month backlog of $1.7 billion.
  • Management guided fourth quarter revenue of $621 million to $636 million and full year non-GAAP EPS of $6.72 to $6.82.

Itron, Inc. (NASDAQ: ITRI) shares were trading at USD 91.87 on October 27, 2026, up 4.72%, with a relative volume at time of 2.97. The technology and services company completed its Locusview acquisition on January 5, 2026, sold $805 million of convertible notes on February 23, 2026, and filed its 10-Q for the quarter ended September 30, 2026 on October 27, 2026, along with fourth quarter and full year guidance.

Itron is incorporated in Washington and lists its principal executive offices in Liberty Lake, Washington. It offers solutions that help utilities and municipalities operate infrastructure in the energy, water and municipality sectors, including smart networks, software, services, devices, sensors and data analytics. It reports four segments: Device Solutions, Networked Solutions, Outcomes and Resiliency Solutions. Resiliency Solutions became a reportable segment in the fourth quarter of 2025. The fiscal year ends December 31.

Third Quarter 2026 Results

Total revenues were $599,333 thousand, an increase of 3%. Product revenues were $489,002 thousand, against $494,323 thousand, and service revenues were $110,331 thousand, against $87,302 thousand. Gross margin was 40.9%, against 37.7%.

By segment, revenues were $101,520 thousand in Device Solutions, down 2%, and $389,502 thousand in Networked Solutions, down 1%. Outcomes revenues were $92,241 thousand, up 9%, and Resiliency Solutions revenues were $16,070 thousand. Annual recurring revenue was $423 million, against $339 million.

Operating expenses were $149,382 thousand, up 8%, which the company tied mainly to higher research and development expenses, amortization of intangible assets from two recent acquisitions, and labor costs. Operating income was $95,488 thousand, against $81,783 thousand. Net income attributable to Itron was $71,369 thousand, against $65,613 thousand.

Non-GAAP operating income was $106,794 thousand and non-GAAP net income attributable to Itron was $86,333 thousand. Both are non-GAAP measures.

For the nine months, total revenues were $1,749,217 thousand, against $1,795,537 thousand, a decrease of 3%. Net income attributable to Itron was $178,100 thousand, against $199,427 thousand, and GAAP diluted EPS was $3.97, against $4.30.

Cash, Debt and Capital Allocation

Cash and cash equivalents were $840.3 million at September 30, 2026, against $1.02 billion at December 31, 2025. The company said the decrease was primarily cash used for the Locusview acquisition and repayment of its 2021 convertible notes, partly offset by net proceeds from the 2026 convertible notes and operating cash flow.

Net cash provided by operating activities for the nine months was $275.5 million, against $286.6 million, and non-GAAP free cash flow was $256,005 thousand, against $271,554 thousand. The company said the decrease came from higher net working capital and increased spending on property, plant and equipment.

The 2026 Notes carry no regular interest and mature on March 15, 2032. Net proceeds were $784 million. No amount was outstanding under the $750 million revolver, with $722.3 million available after letters of credit. The company repurchased common stock totaling $152.2 million in the nine months and purchased a capped call for $92.8 million.

On May 6, 2026, the Board authorized a repurchase program of up to $200 million over 18 months. The Locusview purchase price allocated to acquired assets and liabilities was $546.4 million.

Outlook

On its earnings call, management said it expects fourth quarter revenue of $621 million to $636 million and fourth quarter non-GAAP EPS of $1.70 to $1.80 per diluted share. It narrowed full year revenue guidance to $2.37 billion to $2.385 billion and raised full year non-GAAP EPS guidance to $6.72 to $6.82 per diluted share. Management said it will not guide 2027 until February.