Itron Posts Record Adjusted Earnings of $115 Million in Third Quarter
Key Facts
Itron said adjusted EBITDA was $115 million in the third quarter of 2026, up 18% from the year-earlier period, as revenue returned to growth at the high end of the company’s expectations. Chief Executive Tom Deitrich said earnings exceeded management’s expectations and the company recorded a record level for the metric. GAAP diluted earnings per share were $1.61, up $0.20 year over year. Adjusted diluted earnings per share were $1.94, an increase of $0.40 from the third quarter of 2025. The company released its results on October 27, 2026, amid demand that management said was supported by utilities’ needs for capacity, reliability, resiliency and affordability.
Annual recurring revenue was $423 million, up 25% from the third quarter of the previous year and growing faster than total revenue. This revenue reflects the company’s recurring activity, and Itron attributed part of its growth to its solutions and services business. The company said the increase in revenue was driven mainly by growth in the Outcomes segment and a contribution from Resiliency Solutions. By contrast, legacy gas product sales declined, while Networked Solutions revenue was affected by project timing. The differing performance across these activities indicates that overall revenue growth relied on contributions from specific segments, while other factors constrained some business lines.
Adjusted gross margin improved to 41.3%, up 350 basis points from the year-earlier period in 2025. Itron attributed the increase to customer and product mix and operating efficiency. Adjusted EBITDA rose 18% to $115 million, reflecting higher adjusted profitability alongside margin expansion. Deitrich said the company delivered record adjusted earnings and exceeded management’s expectations. He also said utilities face growing needs for capacity, reliability, resiliency and affordability, factors that support demand for the company’s solutions.
Bookings during the quarter were $482 million, and total backlog reached $4.3 billion at the end of the quarter on September 30, 2026. Backlog includes orders that have not yet converted into revenue, while bookings measure orders recorded during the period. These figures provide an indication of the volume of business added to the order book and the balance outstanding at quarter-end. The figures provided did not include year-over-year comparisons for bookings or backlog. On liquidity, the company’s summary said free cash flow declined because of changes in working capital, higher cash tax payments and lower interest income.
Itron forecast revenue of between $621 million and $636 million and adjusted diluted earnings per share of between $1.70 and $1.80 in the fourth quarter of 2026. For fiscal 2026, the company set an updated revenue range of between $2.37 billion and $2.385 billion and an adjusted diluted earnings-per-share range of between $6.72 and $6.82. The statement did not specify the change from its previous full-year outlook. Management is scheduled to hold a call to discuss the results on October 27 at 10:00 a.m. Eastern time, after the results were released the same day at 8:30 a.m. The fourth-quarter range sets out the company’s next operating estimate, while the annual range summarizes its expectations for the rest of the fiscal year.