Itron Inc., with a market capitalization of $5.67 billion, reported strong earnings for the second quarter of 2025, exceeding analyst expectations with an EPS of $1.62, compared to the forecasted $1.32. Despite this earnings beat, the company’s revenue slightly missed projections, coming in at $607 million against an expected $609 million. The market reacted negatively, with Itron’s stock dropping 10.19% in pre-market trading. According to InvestingPro data, the company maintains strong financial health with an overall score of 3.09 out of 5.

Key Takeaways
Itron’s Q2 EPS of $1.62 surpassed expectations by 22.73%. Revenue fell short of forecasts, reaching $607 million against a $609 million estimate. The stock price fell by 10.19% in pre-market trading. Record gross margin of 36.9% was achieved. Strong demand for GridEdge Intelligence platform noted.

Company Performance
Itron demonstrated robust performance in the second quarter, with significant improvements in profitability metrics. The company achieved an all-time high gross margin of 36.9% and a record free cash flow of $91 million. InvestingPro analysis shows the company operates with a healthy current ratio of 1.93, indicating strong liquidity. Despite a slight decline in revenue compared to the prior year, Itron’s operational efficiency and focus on high-value solutions contributed to the improved earnings per share. The company’s PEG ratio of 0.43 suggests attractive valuation relative to its growth prospects.

Financial Highlights
Revenue: $607 million, slightly below expectations. Earnings per share: $1.62, up from $1.21 in the previous year. Adjusted EBITDA: $90 million, representing 14.8% of revenue. Free Cash Flow: $91 million, marking a record high.

Earnings vs. Forecast
Itron’s EPS of $1.62 exceeded the forecast of $1.32, representing a 22.73% positive surprise. This performance marks a significant improvement from previous quarters and highlights the company’s operational strengths. However, the revenue of $607 million slightly missed the forecasted $609 million, resulting in a minor negative surprise of -0.37%.

Market Reaction
Following the earnings announcement, Itron’s stock experienced a notable decline of 10.19% in pre-market trading, with the price dropping to $131. This movement comes despite the positive EPS surprise, indicating investor concerns over the revenue miss and broader market conditions. InvestingPro analysis indicates the stock is currently overbought, with additional insights available through their comprehensive Pro Research Report, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

Outlook & Guidance
Looking forward, Itron has set a full-year revenue outlook of $2.350 to $2.400 billion, representing a 3% decline. However, the company expects a 9% increase in non-GAAP EPS, projecting between $6.00 and $6.20. With a P/E ratio of 22.24 and strong revenue growth of 7.1% over the last twelve months, InvestingPro data suggests the company is well-positioned for future growth. Itron remains confident in achieving a book-to-bill ratio of 1:1 or higher, underscoring its optimism about long-term market growth.

Executive Commentary
Joan Hooper, CFO, expressed pride in the company’s margin improvements, stating, "We are proud of the work we have done to improve the margin profile of the business." CEO Tom Dietrich highlighted the company’s market position, saying, "The outlook for market growth remains strong." He also noted ongoing M&A efforts: "We remain very active in this space and are looking for the right asset to add to our portfolio."

Earnings call transcript: Itron Q2 2025 beats EPS estimates, stock declines

Itron Inc. reported Q2 2025 earnings that exceeded analyst expectations for earnings per share (EPS) but slightly missed revenue forecasts, leading to a stock decline. The company achieved a record gross margin and strong free cash flow, though revenue fell short of estimates. The stock dropped 10.19% pre-market, with a PEG ratio of 0.43 indicating attractive valuation.