Itron revenue dips to $587M as backlog swells to $4.4 billion

Itron (NASDAQ:ITRI) reported financial results for the first quarter ended March 31, 2026, on Tuesday, April 28, 2026, highlighting a period of strategic integration and significant margin improvement despite a slight pullback in top-line revenue.

The Liberty Lake-based leader in energy and water management solutions posted total revenue of $587 million, a 3% decrease compared to the $603 million reported in the first quarter of 2025.

The quarter’s bottom line was impacted by shifting product mixes and ongoing investments in its software-as-a-service (SaaS) transition.

GAAP net income for the quarter was $53 million, or $1.18 per diluted share, down from $65 million, or $1.42 per share, in the prior-year period.

However, the company demonstrated strong operational efficiency, with adjusted gross margin expanding by a substantial 490 basis points to reach 40.7%.

This improvement reflects Itron's successful shift toward higher-margin software and services.

A major milestone for the quarter was the closing of the Locusview acquisition in January 2026.

Locusview, a leader in digital construction management for utilities, is expected to enhance Itron's "Grid Edge" intelligence and streamline the deployment of critical infrastructure.

Adjusted EBITDA for the quarter stood at $92 million, while the company generated a healthy free cash flow of $79 million.

Itron’s total backlog remains a key indicator of future growth, ending the quarter at $4.4 billion.

This massive pipeline of work, driven by global utility investments in grid resiliency and decarbonization, provides significant visibility into the company’s performance for the remainder of 2026 and beyond.