Itron is shifting beyond smart meters, with growth increasingly centered on grid-edge intelligence, software and services that help utilities manage rising demand, distributed energy resources, EV charging and reliability. DI-enabled endpoints rose about 20% year over year to 18 million, while licensed applications increased roughly 50% to nearly 28 million. Itron reported a record opportunity pipeline, particularly among U.S. electric utilities, but cautioned that bookings and revenue conversion depend on utility and regulatory schedules.
Its total backlog was $4.4 billion, including more than $1 billion in Outcomes, with application revenue typically following network deployments by nine to 12 months. Higher-priced DI products and operational improvements are supporting margins, while Itron is managing memory supply risks through advance purchasing, dual sourcing and inventory buffers. The company also expects its Urbint and Locusview acquisitions to generate $65 million to $70 million in revenue with approximately 70% gross margins. 3 Inexpensive Mid Cap Tech Stocks With Good Growth Prospects Itron (NASDAQ:ITRI) executives said at Oppenheimer's Annual Technology Conference that the company's opportunity is increasingly tied to grid-edge intelligence, software and services rather than its historical identity as a smart-meter supplier.
Chief Financial Officer Joan Hooper said Itron's early advanced metering infrastructure, or AMI 1.0, business primarily helped utilities automate billing processes. Today, she said, the company offers meters, grid-edge intelligence, networks, software analytics and services intended to help utilities address more complex operating challenges. → Lumentum Just Delivered the AI Growth Investors Wanted Don't Be Fooled By Badger Meter's Rise, There's More To Go "It isn't really about the meter anymore," Hooper said. "It's about the solutions that we can bring to the customer for the problems that they're dealing with." Hooper described adoption of Itron's distributed intelligence, or DI, technology as being in the "early innings." At the end of the second quarter, Itron had shipped about 18 million DI-enabled endpoints, representing approximately 20% year-over-year growth.
Hooper characterized those endpoints as meters with computing capability attached. → Ryman Checks Into a $1.38B Hospitality Upgrade The company also had nearly 28 million licensed applications for DI-enabled endpoints, up about 50% from a year earlier, according to Hooper. However, she said the number of endpoints in use remains a relatively small share of the broader meter base. New contracts are increasingly incorporating components from Itron's Networked and Outcomes businesses, along with the ability for utilities to purchase applications, Hooper said.
The platform is designed to help utilities manage load growth, coordinate distributed energy resources and electric-vehicle charging, and improve resilience and reliability. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal Utilities are facing rising electricity demand from factors including data centers and distributed-energy-resource activity, along with regulatory pressure to maintain affordability, Hooper said. She added that Itron has "never seen the pipeline" of opportunities as large as it is now, with demand concentrated in U.S. electric utilities while gas-related opportunities have also become significant. Despite the demand pipeline, Hooper said the timing of bookings and revenue conversion can vary substantially by utility and regulator.
Utilities may address projects one territory at a time rather than pursuing a large multiyear deployment across all service territories, she said. That approach could produce smaller bookings that move from pipeline to backlog more quickly and are deployed over one to two years, rather than larger projects that can take four to five years to roll out. Still, Hooper cautioned that outcomes will differ by customer.
Extract — continue reading at the source.
