Stock Analysis · Itron Inc (ITRI)
Overview
Itron Inc. (ITRI) builds technology used mainly by utility companies to measure and manage energy and water use. In simple terms, it helps utilities and cities “see” consumption in near real time, improve billing accuracy, detect outages or leaks faster, and run distribution networks more efficiently. Its offerings typically combine physical devices installed in the field (such as meters and communication modules) with software and services that help customers collect, analyze, and act on the information.
Itron reports its business in three operating segments, which are commonly used as a practical way to understand where revenue comes from. Based on company reporting, the main revenue sources are:
- Device Solutions (hardware such as meters, modules, and related items)
- Networked Solutions (communications networks and related systems that connect devices)
- Outcomes (software, services, and recurring/ongoing offerings tied to running and optimizing systems)
Because the mix can change by year depending on project timing and customer spending cycles, percentages should be taken from the most recent annual filing when adding them.
How money flows through the business (recent direction): The company’s revenue expanded from about $2.0B (2021) to about $2.44B (2024). Over the same period, profitability improved notably, with net income moving from a loss in 2021 to a profit in 2023 and rising further in 2024. This suggests that recent years included a meaningful operational improvement, not just a revenue change.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 08, 2026 | |
| Context | ||
| Sector | Technology | |
| Industry | Scientific & Technical Instruments | |
| Market Cap ⓘ | $4.77B | |
| Beta ⓘ | 1.43 | |
| Fundamental | ||
| P/E Ratio ⓘ | 18.68 | 45.31 |
| Profit Margin ⓘ | 10.69% | 12.33% |
| Revenue Growth ⓘ | -5.50% | 7.45% |
| Debt to Equity ⓘ | 74.99% | 49.68% |
| PEG ⓘ | 0.59 | |
| Free Cash Flow ⓘ | $339.69M | |
Itron’s market capitalization is about $4.77B, placing it in the mid-cap range. The stock’s beta of 1.43 indicates it has tended to move more than the overall market (higher volatility than a beta near 1.0).
On profitability, the latest profit margin is ~10.7%, which is close to the shown industry median (~12.3%). On growth, the latest year-over-year revenue change is about -5.5%, while the industry median shown is positive (~7.5%). This points to a near-term slowdown for the company relative to the group, after stronger growth earlier in the period.
Financial leverage is higher than the displayed industry median: debt-to-equity is ~75% versus an industry median around 49.7%. Free cash flow over the trailing twelve months is about $339.7M, which is a notable cash generation level for a company of this size (though it can vary with working capital, project timing, and capital spending).
Growth (Medium)
Itron operates in markets tied to long-lived infrastructure: electric grids and water systems. These customers often invest in modernization over multi-year cycles, driven by needs like reliability, aging equipment replacement, better outage response, loss/theft reduction, and improved data visibility. In that sense, the company sits within a long-duration “upgrade” theme rather than a short product-cycle market.
That said, the company’s recent revenue growth pattern has not been steady. After a period of strong year-over-year growth (notably across 2023 and early 2024), growth cooled and turned slightly negative in the most recent period shown. This matters because infrastructure spending can be lumpy: large deployments can shift between quarters and years, and utilities may delay or accelerate projects.
A supportive sign for long-term operating health is the improvement in cash generation since 2023. Free cash flow moved from roughly break-even/negative levels (as shown in early 2023) to meaningfully positive levels through 2024 and 2025. Consistently positive free cash flow can help fund research and development, expand service capabilities, and reduce reliance on borrowing, but it still needs to be monitored through a full customer spending cycle.
Potential catalysts (in a neutral, factual sense) typically include: utilities starting or restarting major deployments, contract wins that convert into multi-year deliveries, and continued shift toward software and services (which can be more recurring than hardware). Whether these materialize depends on customer budgets, regulatory frameworks, and execution.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
