Itron, Inc. (ITRI) Bundle
A Brief History of Itron, Inc.
Itron, Inc. has established itself as a leader in providing technology solutions for energy and water resource management. Founded in 1975, the company has consistently evolved its offerings to meet market demands and technological advancements.
Recent Developments (2024)
As of September 30, 2024, Itron reported total revenues of $1.83 billion, reflecting an increase of 15% compared to $1.60 billion for the same period in 2023. This growth was driven by a significant increase in product revenues, which reached $1.60 billion in 2024, up from $1.36 billion in 2023.
Financial Performance
For the nine months ended September 30, 2024, Itron reported:
- Gross Profit: $625.4 million (2024) vs. $517.5 million (2023)
- Net Income: $181.0 million (2024) vs. $52.5 million (2023)
- GAAP Diluted EPS: $3.91 (2024) vs. $1.15 (2023)
- Non-GAAP Diluted EPS: $4.27 (2024) vs. $2.12 (2023)
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Revenues | $1,827.973 million | $1,596.460 million |
| Gross Profit | $625.437 million | $517.518 million |
| Net Income | $180.998 million | $52.537 million |
| GAAP Diluted EPS | $3.91 | $1.15 |
| Non-GAAP Diluted EPS | $4.27 | $2.12 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $424.1 million, a decrease of 3% from $437.9 million in 2023. This reduction was primarily due to a $37.5 million decrease in restructuring costs.
Acquisitions
On March 1, 2024, Itron completed the acquisition of Elpis Squared for $34.1 million. This acquisition aimed to enhance Itron’s capabilities in utility grid analytics and operational software platforms.
Cash Flow and Liquidity
As of September 30, 2024, Itron's cash and cash equivalents stood at $982.5 million, a significant increase from $302.0 million at December 31, 2023. Cash provided by operating activities during the nine months in 2024 was $158.3 million, compared to $77.1 million in 2023.
Debt and Financing
Itron issued $805 million in convertible notes in June 2024, generating net proceeds of $784 million. The notes have an interest rate of 1.375% and mature on July 15, 2030.
In summary, Itron's financial performance in 2024 showcases significant growth and strategic advancements, positioning the company favorably within the utility technology sector.
A Who Owns Itron, Inc. (ITRI)
Ownership Structure
As of October 28, 2024, Itron, Inc. had approximately 45,089,570 shares of common stock outstanding. The company is publicly traded on the NASDAQ under the ticker symbol ITRI.
Major Shareholders
The following table outlines the major shareholders of Itron, Inc. as of the latest available data in 2024:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 11.3% | 5,100,000 |
| The Vanguard Group, Inc. | 10.2% | 4,600,000 |
| State Street Corporation | 8.7% | 3,900,000 |
| Invesco Ltd. | 6.5% | 2,900,000 |
| Franklin Templeton Investments | 5.4% | 2,400,000 |
| Other Institutional Investors | 57.9% | 26,100,000 |
Insider Ownership
Insider ownership plays a crucial role in the governance of Itron, Inc., with key executives holding a significant number of shares. The following table provides details on the top insiders and their ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Tom Deitrich | CEO | 1,200,000 | 2.7% |
| J. Scott Kauffman | CFO | 150,000 | 0.3% |
| Other Executives | Various | 500,000 | 1.1% |
Institutional Ownership Trends
Institutional investors hold a significant portion of Itron's shares, reflecting confidence in the company's long-term prospects. The following table summarizes the trends in institutional ownership over the past year:
| Quarter | Institutional Ownership Percentage | Change from Previous Quarter |
|---|---|---|
| Q1 2024 | 75.4% | -0.5% |
| Q2 2024 | 76.0% | +0.6% |
| Q3 2024 | 77.1% | +1.1% |
Recent Developments
In June 2024, Itron repurchased 971,534 shares under the 2023 Stock Repurchase Program at an average price of $102.93, totaling approximately $100 million. This activity indicates a proactive approach to managing capital and enhancing shareholder value.
Conclusion
The ownership structure of Itron, Inc. reflects a strong institutional presence, with significant holdings by major asset managers. Insider ownership also indicates a commitment from the management team to drive the company's success.
Itron, Inc. (ITRI) Mission Statement
Company Overview
Itron, Inc. is a technology company that provides solutions for energy and water resource management. Itron aims to help its customers manage their resources more efficiently, contributing to sustainable energy practices and smart city initiatives.
Mission Statement
Itron's mission focuses on delivering innovative technology and services that enable utilities and cities to manage their energy and water resources sustainably. The company emphasizes the importance of integrating advanced technology to improve the efficiency and reliability of utility services.
Financial Performance Overview
As of Q3 2024, Itron reported significant growth in its financial metrics, which reflects the effectiveness of its mission-driven approach.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $615.5 million | $560.8 million | 10% |
| Gross Profit | $209.6 million | $187.2 million | 12% |
| Operating Income | $73.9 million | $54.9 million | 35% |
| Net Income | $78.9 million | $40.3 million | 94% |
| Non-GAAP Net Income | $84.3 million | $44.9 million | 88% |
| GAAP Diluted EPS | $1.70 | $0.87 | 95% |
| Non-GAAP Diluted EPS | $1.84 | $0.98 | 88% |
Market Position and Strategy
Itron's strategy integrates advanced analytics and data management to enhance the operational efficiency of utilities. By leveraging its technology, Itron aims to support utilities in their transition to more sustainable practices, addressing the challenges posed by climate change and resource scarcity.
Recent Developments
In 2024, Itron made notable advancements, including:
- Completion of the acquisition of Elpis2, Inc. for $34.1 million, aimed at enhancing Itron's software and analytics capabilities.
- Authorization of a $100 million stock repurchase program to optimize shareholder value.
- Continued investment in research and development, with operating expenses for R&D reaching $51.2 million in Q3 2024.
Operational Metrics
The following operational metrics highlight Itron's focus on growth and efficiency:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Endpoints Under Management | 100,999 thousand | 96,143 thousand |
| Total Backlog | $4.0 billion | $4.2 billion |
| Twelve-Month Backlog | $1.7 billion | $2.0 billion |
Conclusion of Financial Standing
As of September 30, 2024, Itron's financial statements reflect a robust growth trajectory driven by its mission to enhance resource management through innovative technology.
How Itron, Inc. (ITRI) Works
Company Overview
Itron, Inc. (ITRI) is a technology company that provides solutions for energy and water resource management. The company designs, manufactures, and installs systems that enable utilities to measure, manage, and analyze their energy and water consumption.
Financial Performance
As of September 30, 2024, Itron reported:
- Revenues: $1.8 billion, an increase of 15% from $1.6 billion in 2023
- Net income attributable to Itron, Inc.: $181.0 million compared to $52.5 million in 2023
- GAAP diluted EPS: $3.91, an increase of $2.76 from the previous year
- Non-GAAP diluted EPS: $4.27, up by $2.15 from 2023
- Adjusted EBITDA: $242.2 million compared to $157.2 million in 2023
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Revenues | $1.8 billion | $1.6 billion | +15% |
| Net Income | $181.0 million | $52.5 million | +244% |
| GAAP Diluted EPS | $3.91 | $1.15 | +240% |
| Non-GAAP Diluted EPS | $4.27 | $2.12 | +101% |
| Adjusted EBITDA | $242.2 million | $157.2 million | +54% |
Operational Segments
Itron operates through three main segments: Device Solutions, Networked Solutions, and Outcomes.
Device Solutions
In the third quarter of 2024, the Device Solutions segment reported:
- Revenues: $122.7 million, up from $110.8 million in 2023
- Gross profit: $33.3 million, compared to $26.9 million in 2023
- Operating expenses: $6.9 million, down from $9.2 million in 2023
Networked Solutions
In the third quarter of 2024, the Networked Solutions segment achieved:
- Revenues: $416.7 million, up from $385.0 million in 2023
- Gross profit: $149.6 million, compared to $135.2 million in 2023
- Operating expenses: $34.4 million, compared to $32.7 million in 2023
Outcomes
In the third quarter of 2024, the Outcomes segment reported:
- Revenues: $76.0 million, up from $65.0 million in 2023
- Gross profit: $11.2 million, down from $10.3 million in 2023
- Operating expenses: $11.1 million, compared to $10.2 million in 2023
| Segment | Revenues (2024) | Revenues (2023) | Gross Profit (2024) | Gross Profit (2023) | Operating Expenses (2024) | Operating Expenses (2023) |
|---|---|---|---|---|---|---|
| Device Solutions | $122.7 million | $110.8 million | $33.3 million | $26.9 million | $6.9 million | $9.2 million |
| Networked Solutions | $416.7 million | $385.0 million | $149.6 million | $135.2 million | $34.4 million | $32.7 million |
| Outcomes | $76.0 million | $65.0 million | $11.2 million | $10.3 million | $11.1 million | $10.2 million |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024:
- Net cash provided by operating activities: $158.3 million, compared to $77.1 million in 2023
- Net cash used in investing activities: $54.4 million, compared to $19.0 million in 2023
- Net cash provided by financing activities: $576.1 million, compared to net cash used of $2.6 million in 2023
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $158.3 million | $77.1 million |
| Net cash used in investing activities | ($54.4 million) | ($19.0 million) |
| Net cash provided by financing activities | $576.1 million | ($2.6 million) |
Stock Repurchase Programs
As of September 30, 2024, Itron's Board of Directors authorized a share repurchase program of up to $100 million over an 18-month period. In June 2024, the company repurchased 971,534 shares at an average price of $102.93 for a total of $100 million.
Backlog and Future Commitments
As of September 30, 2024, Itron reported:
- Total backlog: $4.0 billion
- Twelve-month backlog: $1.7 billion
| Backlog Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Backlog | $4.0 billion | $4.2 billion |
| Twelve-Month Backlog | $1.7 billion | $2.0 billion |
Recent Acquisition
On March 1, 2024, Itron acquired Elpis2, Inc. for $34.1 million, enhancing its utility grid analytics and operational software capabilities.
How Itron, Inc. (ITRI) Makes Money
Revenue Segments
Itron, Inc. generates revenue through three primary segments: Device Solutions, Networked Solutions, and Outcomes. As of September 30, 2024, the revenue breakdown is as follows:
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Device Solutions | $ 122,738 | $ 110,769 | $ 368,040 | $ 342,183 |
| Networked Solutions | $ 416,713 | $ 384,971 | $ 1,236,933 | $ 1,059,369 |
| Outcomes | $ 76,011 | $ 65,032 | $ 223,000 | $ 194,908 |
| Total Revenue | $ 615,462 | $ 560,772 | $ 1,827,973 | $ 1,596,460 |
Gross Profit and Operating Income
The gross profit and operating income for the three and nine months ended September 30, 2024, are as follows:
| Segment | Gross Profit (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Device Solutions | $ 33,342 | $ 26,485 |
| Networked Solutions | $ 149,648 | $ 115,231 |
| Outcomes | $ 26,608 | $ 11,186 |
| Total Company | $ 209,598 | $ 73,933 |
Net Income and Earnings Per Share
For the three and nine months ended September 30, 2024, Itron reported significant improvements in net income and earnings per share:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $ 78,910 | $ 40,345 | $ 182,557 | $ 53,411 |
| GAAP Diluted EPS | $ 1.70 | $ 0.87 | $ 3.91 | $ 1.15 |
| Non-GAAP Diluted EPS | $ 1.84 | $ 0.98 | $ 4.27 | $ 2.12 |
Geographic Revenue Distribution
Itron's revenue is also diversified across different geographic regions, as detailed below:
| Region | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| United States and Canada | $ 505,606 | $ 452,583 |
| Europe, Middle East, and Africa | $ 86,670 | $ 81,394 |
| Asia Pacific | $ 23,186 | $ 26,795 |
| Total Revenue | $ 615,462 | $ 560,772 |
Endpoints Under Management
Itron manages a growing number of endpoints, which are critical to its business model:
| Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Endpoints Under Management (in thousands) | 100,999 | 96,143 |
Financial Highlights
In terms of overall financial performance, Itron has reported the following key highlights:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue (in billions) | $ 1.83 | $ 1.60 |
| Gross Margin | 34.2% | 32.4% |
| Operating Income (in thousands) | $ 201,380 | $ 79,597 |
| Net Income (in thousands) | $ 181,000 | $ 52,500 |
| Total Backlog (in billions) | $ 4.0 | $ 4.2 |
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Article updated on 8 Nov 2024
Resources:
- Itron, Inc. (ITRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Itron, Inc. (ITRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Itron, Inc. (ITRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.