XML 33 R22.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Information
 9 Months Ended
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 thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$103,097 $365,378 $25,848 $494,323 
Service revenues525 28,324 58,453 87,302 
Total revenues103,622 393,702 84,301 581,625 
Cost of revenues71,615 238,941 51,524 362,080 
Gross profit32,007 154,761 32,777 219,545 
Sales, general and administrative2,900 6,695 3,707 13,302 
Research and development4,232 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 thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$340,423 $1,119,381 $74,844 $1,534,648 
Service revenues1,830 85,987 173,072 260,889 
Total revenues342,253 1,205,368 247,916 1,795,537 
Cost of revenues238,902 744,650 151,603 1,135,155 
Gross profit103,351 460,718 96,313 660,382 
Sales, general and administrative9,856 20,852 12,420 43,128 
Research and development12,695 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 thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$122,119 $390,201 $25,929 $538,249 
Service revenues619 26,512 50,082 77,213 
Total revenues122,738 416,713 76,011 615,462 
Cost of revenues89,396 267,065 49,403 405,864 
Gross profit33,342 149,648 26,608 209,598 
Sales, general and administrative3,137 6,860 3,874 13,871 
Research and development3,720 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 thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$365,956 $1,158,857 $74,165 $1,598,978 
Service revenues2,084 78,076 148,835 228,995 
Total revenues368,040 1,236,933 223,000 1,827,973 
Cost of revenues273,403 784,103 145,030 1,202,536 
Gross profit94,637 452,830 77,970 625,437 
Sales, general and administrative10,246 20,390 11,720 42,356 
Research and development12,478 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 thousands2025202420252024
United States and Canada$477,715 $505,606 $1,464,462 $1,486,090 
Europe, Middle East, and Africa75,202 86,670 250,107 272,107 
Asia Pacific28,708 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 thousands2025202420252024
Device Solutions$2,269 $3,423 $6,583 $8,853 
Networked Solutions3,456 4,219 10,532 12,234 
Outcomes1,317 1,510 3,933 4,470 
Corporate unallocated4,997 5,564 15,173 15,422 
Total Company$12,039 $14,716 $36,221 $40,979