XML 33 R22.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate under the Itron brand worldwide and manage and report under three operating segments: Device Solutions, Networked Solutions, and Outcomes. We define these segments based on the structure in which internally reported financial information is regularly provided to the chief operating decision maker (CODM) to analyze financial performance, make strategic decisions, and allocate resources. The Company's CODM is the chief executive officer.

Segment Products

Device Solutions – This segment primarily includes hardware products used for measurement, control, or sensing that can have communications capability embedded for use with our broader Itron systems, i.e., hardware-based products that may be part of a complete end-to-end solution. Examples from the Device Solutions portfolio include: standard endpoints that are shipped without Itron communications, such as our standard electricity, gas, and water meters for a variety of global markets and adhering to regulations and standards within those markets, as well as our heat and allocation products; communicating meters that may be sold as part of an Itron end-to-end solution and designed to meet market requirements; and the implementation and installation of communicating and non-communicating devices.

Networked Solutions – This segment primarily includes a combination of communicating devices (e.g., smart meters, modules, endpoints, and sensors), network infrastructure, network design services, and associated head-end management and application software designed and sold as a complete solution for acquiring and transporting robust application-specific data. Networked Solutions includes products and software for the implementation, installation, and management of communicating devices and data networks. The Industrial Internet of Things (IIoT) solutions supported by this segment include automated meter reading (AMR); advanced metering infrastructure (AMI) for electricity, water, and gas; distributed energy resource management (DERMs); grid edge devices; distribution automation communications; smart street lighting; smart city sensors and applications; and leak detection and applications for both gas and water systems. Our IIoT platform allows utility and smart city applications to be run and managed on a flexible multi-purpose network.

Outcomes – This segment primarily includes our value-added, enhanced software and services in which we enable grid edge intelligence and manage, organize, analyze, and interpret raw, anonymized data using artificial intelligence, machine learning, statistical modeling, and other analytics. This delivers new value for utilities and smart cities through improving decision making, maximizing operational profitability, engaging consumers, enhancing resource efficiency, and improving grid resiliency and reliability. Outcomes supports high-value use cases, such as data management, grid operations, distributed intelligence, AMI operations, gas distribution and safety, water operations management, revenue assurance, DERMs, energy forecasting, consumer engagement, smart payment, and fleet energy resource management. Utilities leverage these outcomes to unlock the capabilities of their networks and devices, improve the productivity of their workforce, increase the reliability of their operations, manage and optimize the proliferation of distributed energy resources (DERs), address grid complexity, and enhance the customer experience. Revenue from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other third-parties' products on behalf of our end customers.
The CODM assesses the segments' performance primarily by using each segment's revenues and gross profit (gross margin). Intersegment revenues are minimal. Certain operating expenses are allocated to the operating segments based upon internally established allocation methodologies. Corporate operating expenses, interest income, interest expense, other income (expense), and the income tax provision (benefit) are neither allocated to the segments, nor are they included in the measure of segment performance. Goodwill impairment charges are recognized in Corporate unallocated. No asset information for reportable segments is provided to the CODM. We do not manage the performance of the segments on a balance sheet basis.

The CODM assesses revenues and gross profit for each segment predominantly in the annual budget and periodic forecasting process. The CODM considers budget-to-actual and forecast-to-actual variances for these measures when making decisions about the allocation of operating and capital resources to each segment. The CODM primarily uses segment gross profit for evaluating pricing strategy and the performance of each segment.

Information about our reporting segments and Corporate unallocated and the reconciliation to income before income taxes was as follows:

Three Months Ended March 31, 2025
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$125,387 $374,522 $23,232 $523,141 
Service revenues484 28,210 55,316 84,010 
Total revenues125,871 402,732 78,548 607,151 
Cost of revenues88,118 254,018 47,796 389,932 
Gross profit37,753 148,714 30,752 217,219 
Sales, general and administrative3,328 6,680 4,077 14,085 
Research and development3,954 25,925 12,345 42,224 
Corporate unallocated expenses— — — — 84,697 
Total other income (expense)— — — — 6,066 
Income before income taxes$30,471 $116,109 $14,330 $160,910 $(78,631)$82,279 

Three Months Ended March 31, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$125,908 $381,305 $20,609 $527,822 
Service revenues844 26,211 48,565 75,620 
Total revenues126,752 407,516 69,174 603,442 
Cost of revenues96,688 256,491 44,884 398,063 
Gross profit30,064 151,025 24,290 205,379 
Sales, general and administrative3,781 6,499 4,027 14,307 
Research and development4,580 27,848 11,172 43,600 
Corporate unallocated expenses— — — — 84,672 
Total other income (expense)— — — — 2,416 
Income before income taxes$21,703 $116,678 $9,091 $147,472 $(82,256)$65,216 

For the three months ended March 31, 2025 and 2024, no single customer represented more than 10% of total company revenue.
Revenues by region were as follows:
Three Months Ended March 31,
In thousands20252024
United States and Canada$486,212 $482,096 
Europe, Middle East, and Africa96,326 98,656 
Asia Pacific24,613 22,690 
Total Company$607,151 $603,442 

Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
Three Months Ended March 31,
In thousands20252024
Device Solutions$2,105 $2,598 
Networked Solutions3,563 4,018 
Outcomes1,338 1,456 
Corporate unallocated5,062 4,672 
Total Company$12,068 $12,744