Earnings Call

Itron, Inc. Q2 FY2026 Earnings Call

With Tom Deitrich (President and CEO) and Joan Hooper (SVP and CFO).

ITRI

Fiscal Q2 2026

July 28, 2026

30 min read

8 questions

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure services to communities in more than 100 countries. Our proven portfolio of smart networks, software, services, meters and sensors helps our customers better manage energy and water for the people they serve.

EPS

$1.59

Per Tom Deitrich

Gross margin

41%

Per Joan Hooper

Operating income

$89M

increased 8% year-over-year

Free cash flow

$81M

Per Tom Deitrich

1Prepared remarks3 speakers

Operator Good day, thank you for standing by. Welcome to Itron's second quarter 2026 earnings conference call. At this time, all participants on the listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. Today's conference is being recorded. I will now hand the conference over to your speaker host, Paul Vincent, Vice President…

Paul VincentVP of Investor Relations

Good morning, welcome to Itron's second quarter 2026 earnings conference call. Tom Deitrich, Itron's President and Chief Executive Officer, and Joan Hooper, Senior Vice President and Chief Financial Officer, will review Itron's second quarter results and provide a general business update and outlook. Earlier today, the company issued a press release announcing its results. This release also includes details related to the conference call and webcast replay information. Accompanying today's call is a presentation…

Tom DeitrichPresident and CEO

Thank you, Paul. Good morning, everyone, and thank you for joining us today. Itron delivered a high-quality second quarter. Record gross margin, strong free cash flow, and earnings well ahead of our expectations on inline revenue. That combination is a story of the quarter. The operating model we have built now delivers structurally better earnings power. Turning to slide four for the highlights. Revenue of $563 million. Annual recurring revenue of $417 million. Adjusted EBITDA of $97 million. Non-GAAP earnings…

Joan HooperSVP and CFO

Thank you, Tom. Please turn to slide seven for a summary of consolidated GAAP results. Second quarter revenue of $563 million was within the range of the outlook we provided on our last call. As expected, revenue was down from last year due to the timing of project deployments in Networked Solutions, but was partially offset by continued growth in Outcomes. Gross margin of 41% was 410 basis points higher than last year due to favorable mix, operational efficiencies, and continued cost discipline. GAAP net income…

Tom DeitrichPresident and CEO

Thank you, Joan. Before we open the line for questions, let me come back to the larger point. Our strategic position has improved. The environment continues to move towards us. Utilities are being asked to manage more complexity, higher reliability expectations, greater affordability pressure, and rising demand variability all at…