Itron Q2 profit beats despite revenue drop from weaker project deployments

Overview

• US energy and water management firm's Q2 revenue fell 7%, slightly missing analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Revenue decline driven by lower Networked Solutions, partly offset by Outcomes growth

Outlook

• Itron sees Q3 revenue between $590 mln and $600 mln

• Company expects Q3 non-GAAP diluted EPS between $1.50 and $1.60

• Itron raises full-year 2026 non-GAAP diluted EPS outlook to $6.30-$6.50

Result Drivers

• NETWORKED SOLUTIONS DECLINE - Co said revenue fell mainly due to lower Networked Solutions revenue, citing timing of project deployments and lower volumes

• OUTCOMES GROWTH - Outcomes revenue rose 13% due to increased services revenue

• RECORD GROSS MARGIN - Co attributed higher gross margin to customer and product mix as well as operational efficiencies

Company press release: ID:nGNX4MBCf

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment parts peer group is "buy"

• Wall Street's median 12-month price target for Itron Inc is $130.00, about 53.3% above its July 27 closing price of $84.78

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)