Itron revenue returns to growth at $599 million as adjusted EBITDA rises 18% from a year earlier

Itron reported third-quarter 2026 revenue of $599 million, up 3% from $582 million a year earlier, as adjusted EBITDA rose 18% to $115 million and non-GAAP diluted earnings per share climbed to $1.94 from $1.54.

Tom Deitrich, Itron's president and chief executive, said the quarter delivered "revenue returning to growth at the top end of our outlook, record adjusted EBITDA, and earnings well ahead of our expectations".

Revenue turns as Outcomes grows and a new segment lands

The quarter ended September 30, 2026, and the growth was narrow rather than broad. Device Solutions revenue decreased 2%, or 1% in constant currency, on lower legacy gas product sales, and Networked Solutions revenue decreased 1% because of the timing of project deployments. Outcomes revenue increased 9% on higher services revenue, and Resiliency Solutions, a segment with no prior-year comparative in the release, contributed $16 million. Annual recurring revenue reached $423 million, up 25% from a year earlier; the release does not define how the company computes that measure. In his statement, Deitrich said: "our expanding software and services portfolio is supporting recurring revenue growth."

Margins widen while acquisitions lift operating costs

Adjusted gross margin of 41.3% was 350 basis points above the prior-year 37.7%, which the company attributed to customer and product mix as well as operational efficiencies. Adjusted EBITDA of $115 million came to 19.11% of revenue, against 16.72% a year earlier; both margins are computed from the reported revenue and adjusted EBITDA figures. That spread is the substance of the quarter: costs grew far more slowly than the 3% year-over-year top line, so the 18% increase in adjusted EBITDA from a year earlier carried earnings. GAAP operating expenses of $149 million rose $12 million and non-GAAP operating expenses of $141 million rose $10 million, both attributed to the Urbint and Locusview acquisitions, and amortization of intangible assets more than doubled. GAAP operating income was $95 million, $14 million higher, and non-GAAP operating income was $107 million, $18 million higher than a year earlier. GAAP net income attributable to Itron was $71 million, or $1.61 per diluted share, against $66 million, or $1.41, while non-GAAP net income was $86 million against $72 million and non-GAAP diluted EPS rose $0.40 to $1.94.

Free cash flow falls as working capital absorbs cash

Cash generation moved the other way. Net cash provided by operating activities was $102 million against $118 million a year earlier, and free cash flow fell $18 million to $96 million from $113 million. The release attributes the decline to working capital, higher cash tax payments and lower interest income, not to weaker margins, so the earnings improvement and the cash decline are two separate stories that the fourth quarter has to reconcile. Total backlog at quarter end was $4.3 billion and bookings during the quarter totaled $482 million, figures the release reports without a prior-period comparison.

A fourth quarter above the third, without a GAAP bridge

Management guided fourth-quarter revenue to between $621 and $636 million, above the $599 million just reported, with non-GAAP diluted EPS between $1.70 and $1.80. The updated full-year outlook is revenue between $2.37 and $2.385 billion and non-GAAP diluted EPS between $6.72 and $6.82. That full-year range has to absorb a first nine months in which revenue fell 2.58% from the same period of 2025, so the fourth quarter is carrying the year. The outlook covers revenue and non-GAAP earnings only. The release states that "a reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring related expenses and their related tax effects without unreasonable effort." Itron gives no free cash flow or GAAP EPS guidance for the quarter, and it does not say how much of the fourth-quarter range depends on the two acquisitions.

Itron scheduled a conference call for 10:00 a.m. EDT on October 27, 2026 to discuss the results, which were furnished under Item 2.02 of a current report, with the release attached as Exhibit 99.1.