On August 1, 2024, Itron Inc (ITRI, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. The company, which provides solutions to measure, manage, and analyze energy and water use, reported significant growth across key financial metrics.
Company Overview
Itron Inc operates under three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment includes hardware products for measurement and control without embedded communications capability. The Networked Solutions segment offers a combination of communicating devices, network infrastructure, and application software. The Outcomes segment provides enhanced software and services for data management and analysis.
Performance Highlights
For the second quarter of 2024, Itron Inc reported:
- Revenue of $609 million, a 13% increase from the same period in 2023.
- Gross profit of $210 million, up 21% year-over-year.
- GAAP net income attributable to Itron Inc of $51 million, a $27 million increase from Q2 2023.
- GAAP diluted earnings per share (EPS) of $1.10, up $0.57 per share from the previous year.
- Non-GAAP diluted EPS of $1.21, an increase of $0.56 per share.
- Adjusted EBITDA of $77 million, a 56% increase.
- Free cash flow of $45 million, up $9 million from Q2 2023.
Segment Performance
Revenue growth was driven by strong performance across all segments:
- Device Solutions revenue increased by 5%, primarily due to growth in smart water sales.
- Networked Solutions revenue rose by 14%, driven by ongoing and new project deployments.
- Outcomes revenue grew by 16%, attributed to an increase in recurring revenue and services.
Financial Achievements
Itron Inc's gross margin improved to 34.6%, a 250 basis point increase from the prior year, due to a higher margin product mix and operational efficiencies. GAAP operating income was $65 million, a $30 million increase, while non-GAAP operating income was $69 million, up $28 million from Q2 2023.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $609 million | $541 million |
| Gross Profit | $210 million | $174 million |
| GAAP Net Income | $51 million | $24 million |
| GAAP Diluted EPS | $1.10 | $0.53 |
| Non-GAAP Diluted EPS | $1.21 | $0.65 |
Balance Sheet and Cash Flow
As of June 30, 2024, Itron Inc reported total assets of $3.28 billion, up from $2.60 billion at the end of 2023. The company also saw an increase in cash and cash equivalents to $920.6 million from $302 million. Net cash provided by operating activities was $52 million, compared to $42 million in the prior year, with free cash flow increasing to $45 million from $36 million.
Outlook and Guidance
Itron Inc provided an updated outlook for Q3 2024 and the full year:
- Q3 2024 revenue is expected to be between $590 and $600 million, with non-GAAP diluted EPS between $1.10 and $1.20.
- Full-year 2024 revenue is projected to be between $2.385 and $2.415 billion, with non-GAAP diluted EPS between $4.45 and $4.65.
Conclusion
Itron Inc's strong financial performance in Q2 2024, marked by significant revenue and profit growth, demonstrates the company's effective operational execution and strategic positioning in the energy and water management industry. The positive outlook for the upcoming quarter and full year further underscores the company's robust growth trajectory.
Explore the complete 8-K earnings release (here) from Itron Inc for further details.
