Itron Sees Q2 Revenue Decline but Records $414 M in Recurring Backlog
Itron reported a year-over-year Q1 revenue decline due to timing of large network projects and sees lower second-quarter revenue and non-GAAP EPS versus last year. Backlog reached a record level with Outcomes and Resiliency Solutions recurring revenue at $414 million, supporting a back-loaded H2.
1. Q1 Performance and Q2 Outlook
Itron’s Q1 revenue fell year-over-year as large network projects shifted timing and the company now expects Q2 revenue and non-GAAP EPS to decline versus the prior year, reflecting ongoing project timing challenges.
2. Backlog Strength and Recurring Revenue
Total backlog rose to a record level with Outcomes and Resiliency Solutions accounting for 25% of the order book; recurring revenue within Outcomes is two-thirds to three-quarters and Resiliency Solutions sits at $414 million.
3. Analyst Day Targets and H2 Drivers
The company is ahead of its 2027 targets for gross margin, EBITDA, cash flow and EPS, though H1 revenue sits at the low end of the range; it forecasts a back-loaded H2 driven by network project deployments and continued growth in Resiliency Solutions.
4. Acquisition Integration Progress
Post-deal integrations of Urbint and Locusview remain focused on system alignment, with no material revenue synergies recognized yet and contributions being reflected solely within Resiliency Solutions results.