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Segment Information | 9 Months Ended
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Sep. 30, 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 headend management and application software designed and sold as a complete solution for acquiring and transporting robust application-specific data. Networked Solutions includes products, software and services 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) and advanced metering infrastructure (AMI) for electricity, water, and gas; distributed energy resource management (DERMs); grid edge devices; distribution automation communications; smart lighting; and smart city sensors and applications. Our IIoT platform allows utility and smart city applications to be run and managed on a flexible, secure, and interoperable 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 September 30, 2025
In thousands |  | Device Solutions |  | Networked Solutions |  | Outcomes |  | Segments Subtotal |  | Corporate Unallocated |  | Consolidated
Product revenues |  | $ | 103,097 |  |  | $ | 365,378 |  |  | $ | 25,848 |  |  | $ | 494,323 |  |  |  |  |
Service revenues |  | 525 |  |  | 28,324 |  |  | 58,453 |  |  | 87,302 |  |  |  |  |
Total revenues |  | 103,622 |  |  | 393,702 |  |  | 84,301 |  |  | 581,625 |  |  |  |  |
Cost of revenues |  | 71,615 |  |  | 238,941 |  |  | 51,524 |  |  | 362,080 |  |  |  |  |
Gross profit |  | 32,007 |  |  | 154,761 |  |  | 32,777 |  |  | 219,545 |  |  |  |  |
Sales, general and administrative |  | 2,900 |  |  | 6,695 |  |  | 3,707 |  |  | 13,302 |  |  |  |  |
Research and development |  | 4,232 |  |  | 26,186 |  |  | 12,264 |  |  | 42,682 |  |  |  |  |
Corporate unallocated expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | 81,778 |  |  |
Total other income (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,918 |  |  |
Income before income taxes |  | $ | 24,875 |  |  | $ | 121,880 |  |  | $ | 16,806 |  |  | $ | 163,561 |  |  | $ | (72,860) |  |  | $ | 90,701 |
Nine Months Ended September 30, 2025
In thousands |  | Device Solutions |  | Networked Solutions |  | Outcomes |  | Segments Subtotal |  | Corporate Unallocated |  | Consolidated
Product revenues |  | $ | 340,423 |  |  | $ | 1,119,381 |  |  | $ | 74,844 |  |  | $ | 1,534,648 |  |  |  |  |
Service revenues |  | 1,830 |  |  | 85,987 |  |  | 173,072 |  |  | 260,889 |  |  |  |  |
Total revenues |  | 342,253 |  |  | 1,205,368 |  |  | 247,916 |  |  | 1,795,537 |  |  |  |  |
Cost of revenues |  | 238,902 |  |  | 744,650 |  |  | 151,603 |  |  | 1,135,155 |  |  |  |  |
Gross profit |  | 103,351 |  |  | 460,718 |  |  | 96,313 |  |  | 660,382 |  |  |  |  |
Sales, general and administrative |  | 9,856 |  |  | 20,852 |  |  | 12,420 |  |  | 43,128 |  |  |  |  |
Research and development |  | 12,695 |  |  | 80,878 |  |  | 37,070 |  |  | 130,643 |  |  |  |  |
Corporate unallocated expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | 252,202 |  |  |
Total other income (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | 22,053 |  |  |
Income before income taxes |  | $ | 80,800 |  |  | $ | 358,988 |  |  | $ | 46,823 |  |  | $ | 486,611 |  |  | $ | (230,149) |  |  | $ | 256,462 |
Three Months Ended September 30, 2024
In thousands |  | Device Solutions |  | Networked Solutions |  | Outcomes |  | Segments Subtotal |  | Corporate Unallocated |  | Consolidated
Product revenues |  | $ | 122,119 |  |  | $ | 390,201 |  |  | $ | 25,929 |  |  | $ | 538,249 |  |  |  |  |
Service revenues |  | 619 |  |  | 26,512 |  |  | 50,082 |  |  | 77,213 |  |  |  |  |
Total revenues |  | 122,738 |  |  | 416,713 |  |  | 76,011 |  |  | 615,462 |  |  |  |  |
Cost of revenues |  | 89,396 |  |  | 267,065 |  |  | 49,403 |  |  | 405,864 |  |  |  |  |
Gross profit |  | 33,342 |  |  | 149,648 |  |  | 26,608 |  |  | 209,598 |  |  |  |  |
Sales, general and administrative |  | 3,137 |  |  | 6,860 |  |  | 3,874 |  |  | 13,871 |  |  |  |  |
Research and development |  | 3,720 |  |  | 27,557 |  |  | 11,548 |  |  | 42,825 |  |  |  |  |
Corporate unallocated expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | 78,969 |  |  |
Total other income (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,492 |  |  |
Income before income taxes |  | $ | 26,485 |  |  | $ | 115,231 |  |  | $ | 11,186 |  |  | $ | 152,902 |  |  | $ | (70,477) |  |  | $ | 82,425 |
Nine Months Ended September 30, 2024
In thousands |  | Device Solutions |  | Networked Solutions |  | Outcomes |  | Segments Subtotal |  | Corporate Unallocated |  | Consolidated
Product revenues |  | $ | 365,956 |  |  | $ | 1,158,857 |  |  | $ | 74,165 |  |  | $ | 1,598,978 |  |  |  |  |
Service revenues |  | 2,084 |  |  | 78,076 |  |  | 148,835 |  |  | 228,995 |  |  |  |  |
Total revenues |  | 368,040 |  |  | 1,236,933 |  |  | 223,000 |  |  | 1,827,973 |  |  |  |  |
Cost of revenues |  | 273,403 |  |  | 784,103 |  |  | 145,030 |  |  | 1,202,536 |  |  |  |  |
Gross profit |  | 94,637 |  |  | 452,830 |  |  | 77,970 |  |  | 625,437 |  |  |  |  |
Sales, general and administrative |  | 10,246 |  |  | 20,390 |  |  | 11,720 |  |  | 42,356 |  |  |  |  |
Research and development |  | 12,478 |  |  | 83,087 |  |  | 35,322 |  |  | 130,887 |  |  |  |  |
Corporate unallocated expenses |  | — |  |  | — |  |  | — |  |  | — |  |  | 250,814 |  |  |
Total other income (expense) |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,301 |  |  |
Income before income taxes |  | $ | 71,913 |  |  | $ | 349,353 |  |  | $ | 30,928 |  |  | $ | 452,194 |  |  | $ | (237,513) |  |  | $ | 214,681 |
For the three and nine months ended September 30, 2025, and the nine months ended September 30, 2024, no single customer represented more than 10% of total company revenue. For the three months ended September 30, 2024, one customer represented 10.7% of total company revenue. This revenue is included in both the Networked Solutions and Outcomes reporting segments. Revenues by region were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2025 |  | 2024 |  | 2025 |  | 2024
United States and Canada | $ | 477,715 |  |  | $ | 505,606 |  |  | $ | 1,464,462 |  |  | $ | 1,486,090 |
Europe, Middle East, and Africa | 75,202 |  |  | 86,670 |  |  | 250,107 |  |  | 272,107 |
Asia Pacific | 28,708 |  |  | 23,186 |  |  | 80,968 |  |  | 69,776 |
Total Company | $ | 581,625 |  |  | $ | 615,462 |  |  | $ | 1,795,537 |  |  | $ | 1,827,973 |
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 September 30, |  | Nine Months Ended September 30,
In thousands | 2025 |  | 2024 |  | 2025 |  | 2024
Device Solutions | $ | 2,269 |  |  | $ | 3,423 |  |  | $ | 6,583 |  |  | $ | 8,853 |
Networked Solutions | 3,456 |  |  | 4,219 |  |  | 10,532 |  |  | 12,234 |
Outcomes | 1,317 |  |  | 1,510 |  |  | 3,933 |  |  | 4,470 |
Corporate unallocated | 4,997 |  |  | 5,564 |  |  | 15,173 |  |  | 15,422 |
Total Company | $ | 12,039 |  |  | $ | 14,716 |  |  | $ | 36,221 |  |  | $ | 40,979 |

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- Definition The entire disclosure for reporting segments including data and tables. 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