Itron reported first-quarter 2026 revenue of $587 million, down 3% from $607 million a year earlier, as lower legacy electricity product sales in EMEA and softer North American project deployments offset gains elsewhere.
Net income attributable to Itron fell to $53 million from $65 million, while diluted earnings per share declined to $1.18 from $1.42. Adjusted EBITDA rose 5% to $92 million, and free cash flow increased to $79 million from $67 million.
Gross margin improved sharply, with adjusted gross margin rising to 40.7% from the prior-year period, a gain of 490 basis points. Itron said the improvement reflected customer and product mix along with operational efficiencies.
Operating expenses increased. GAAP operating expenses rose to $169 million from $141 million, while non-GAAP operating expenses increased to $154 million from $137 million. GAAP operating income slipped to $68 million from $77 million, but non-GAAP operating income edged up to $84 million from $80 million.
By segment, device solutions revenue fell 1%, or 9% in constant currency. Networked solutions revenue dropped 13%, or 14% in constant currency. Outcomes revenue climbed 22%, or 20% in constant currency, and resiliency solutions contributed $16 million, including revenue from Urbint and LocusView.
Cash from operations improved to $86 million from $72 million. Backlog at quarter end was $4.4 billion, down from $4.7 billion a year earlier, while bookings totaled $476 million.
For the second quarter, Itron guided to revenue of $560 million to $570 million and non-GAAP diluted EPS of $1.25 to $1.35. Following these announcements, the company's shares moved -0.01%, and are now trading at a price of $88.55. Check out the company's full 8-K submission here.
