Tom Deitrich, Itron's President and Chief Executive Officer, and Joan Hooper, Senior Vice President and Chief Financial Officer, will review Itron's fourth quarter results and provide a general business update and outlook. Before Tom begins, a reminder that our earnings release and financial presentation include non-GAAP financial information that we believe enhances the overall understanding of our current and future performance. Reconciliations of differences between GAAP and non-GAAP financial measures are available in our earnings release and on our investor relations website. Itron delivered another quarter of record earnings and profitability, underscoring the durability of our model and accelerating demand for Grid Edge Intelligence.
Highlights on slide 4 include revenue of $572 million, adjusted EBITDA of $99 million, non-GAAP EPS of $2.46, and free cash flow of $112 million. Our value has grown significantly, as demonstrated by increased adoption of Grid Edge Intelligence, Outcomes growth, record financial results, surging annual recurring revenue, and the expansion of our offerings through strategic acquisitions. Turning to slide 6, our fourth quarter bookings were $737 million, with a total backlog at quarter end of $4.5 billion. Continued momentum in Grid Edge Intelligence demand resulted in a record backlog for our Outcomes segment.
As an expansion to our commitment to utility resiliency, we announced during the quarter the acquisition of Urbint, a provider of AI-enhanced solutions for emergency preparedness and response, damage prevention, and worker safety. With both acquisitions now closed, we are introducing a new reporting segment named Resiliency Solutions. Over the past years, we have added power flow analysis and planning software solutions to support detailed grid planning and interconnect analysis. Proactive resiliency is a top priority for our customers, which aligns well with our strategic investments and drives higher margins and recurring revenue growth in 2026 and beyond.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue (full year) | FY2026 | $2.35B-$2.45B (Midpoint represents 1% growth vs 2025) |
| Non-GAAP EPS (full year) | FY2026 | $5.75-$6.25 (Down ~$0.32 at midpoint (tax-normalized), driven by acquisitions) |
| Effective tax rate | FY2026 | 22% |
| Resiliency Solutions revenue | FY2026 | $65M-$70M (gross margin ~70%) (New segment included in outlook) |
| Revenue | Q1 2026 | $565M-$575M (Down 6% vs Q1 2025) |
| Non-GAAP EPS | Q1 2026 | $1.20-$1.30 (Down ~$0.27 at midpoint vs last year) |
| ARR growth | FY2026 | Mid-teens to ~20% (From year-end 2025 to year-end 2026) |
| 2027 revenue target | FY2027 | Target stands, likely toward lower end (Reaffirmed; new long-term targets to be set at a future investor day) |
| Metric | YoY | Note |
|---|---|---|
| Revenue | Lower (down to $572M) | Planned portfolio changes and timing of large project deployments |
| Adjusted gross margin | +580 bps to 40.7% (record) | Favorable customer and product mix |
| Adjusted EBITDA | +21% to $99M (17% of revenue, record) | Strong execution and margin expansion |
| Non-GAAP EPS | +$1.11 to $2.46 (record) | $0.45 from pre-tax operating performance (gross profit fall-through) and $0.69 from lower tax expense |
| Free cash flow | +$42M to $112M | Year-over-year earnings growth and improved working capital |
| Device Solutions revenue | -7% constant currency | Expected decline in legacy electricity products in EMEA and timing of North America project deployments |
| Network Solutions revenue | -15% | Primarily the timing of project deployments |
| Outcomes revenue | +22% constant currency to record $112M | Increase in delivery services and continued growth of recurring revenue |
| Device Solutions adj gross margin | +780 bps to 34.4% (record) | Favorable customer and product mix |
| Network Solutions adj gross margin | +690 bps to 42% | Favorable customer and product mix |
| Outcomes adj gross margin | -230 bps to 41.7% | Lower software license mix (operating margin still up 420 bps on operating leverage) |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Annual recurring revenue (ARR) | — | New metric introduced at ~$368M, up 20% YoY; expected mid-teens to ~20% growth in 2026 | New / growing |
| Resiliency Solutions (Urbint + Locusview) | — | New segment from acquisitions; accretive to revenue growth, gross margin and EBITDA but dilutive ~$0.38 to 2026 EPS; accretive by end of 2027 | New |
| Project deployment timing / slips | Slips/delays seen mid-2025 from data center siting froth and uncertain government funding | No further movement; bookings moving at a normalized, lumpy pace | Stabilizing |
| Outcomes / Grid Edge Intelligence growth | Outcomes grew ~10% during network constraints | Outcomes up 22% YoY in Q4; DI endpoints up 25%, apps up 70%; backlog above $1B | Accelerating |
| Bookings | — | Q4 bookings $737M (down YoY on tough comp); full-year down ~4% vs 2024; pipeline up 27% | Normalizing |
| 2027 targets | Revenue $2.6B-$2.8B; margin/EBITDA/FCF targets | Margin, EBITDA and FCF targets already achieved in 2025; revenue target stands, likely lower end | Ahead on profitability |