v3.25.2
Segment Information
 6 Months Ended
Jun. 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 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 June 30, 2025
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$111,939 $379,481 $25,764 $517,184 
Service revenues821 29,453 59,303 89,577 
Total revenues112,760 408,934 85,067 606,761 
Cost of revenues79,169 251,691 52,283 383,143 
Gross profit33,591 157,243 32,784 223,618 
Sales, general and administrative3,628 7,477 4,636 15,741 
Research and development4,509 28,767 12,461 45,737 
Corporate unallocated expenses— — — — 85,727 
Total other income (expense)— — — — 7,069 
Income before income taxes$25,454 $120,999 $15,687 $162,140 $(78,658)$83,482 
Six Months Ended June 30, 2025
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$237,326 $754,003 $48,996 $1,040,325 
Service revenues1,305 57,663 114,619 173,587 
Total revenues238,631 811,666 163,615 1,213,912 
Cost of revenues167,287 505,709 100,079 773,075 
Gross profit71,344 305,957 63,536 440,837 
Sales, general and administrative6,956 14,157 8,713 29,826 
Research and development8,463 54,692 24,806 87,961 
Corporate unallocated expenses— — — — 170,424 
Total other income (expense)— — — — 13,135 
Income before income taxes$55,925 $237,108 $30,017 $323,050 $(157,289)$165,761 
Three Months Ended June 30, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$117,929 $387,351 $27,627 $532,907 
Service revenues621 25,353 50,188 76,162 
Total revenues118,550 412,704 77,815 609,069 
Cost of revenues87,319 260,547 50,743 398,609 
Gross profit31,231 152,157 27,072 210,460 
Sales, general and administrative3,328 7,031 3,819 14,178 
Research and development4,178 27,682 12,602 44,462 
Corporate unallocated expenses— — — — 87,173 
Total other income (expense)— — — — 2,393 
Income before income taxes$23,725 $117,444 $10,651 $151,820 $(84,780)$67,040 
Six Months Ended June 30, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product revenues$243,837 $768,656 $48,236 $1,060,729 
Service revenues1,465 51,564 98,753 151,782 
Total revenues245,302 820,220 146,989 1,212,511 
Cost of revenues184,007 517,038 95,627 796,672 
Gross profit61,295 303,182 51,362 415,839 
Sales, general and administrative7,109 13,530 7,846 28,485 
Research and development8,758 55,530 23,774 88,062 
Corporate unallocated expenses— — — — 171,845 
Total other income (expense)— — — — 4,809 
Income before income taxes$45,428 $234,122 $19,742 $299,292 $(167,036)$132,256 

For the three and six months ended June 30, 2025 and 2024, no single customer represented more than 10% of total company revenue.

Revenues by region were as follows:
Three Months Ended June 30,Six Months Ended June 30,
In thousands2025202420252024
United States and Canada$500,535 $498,388 $986,747 $980,484 
Europe, Middle East, and Africa78,579 86,781 174,905 185,437 
Asia Pacific27,647 23,900 52,260 46,590 
Total Company$606,761 $609,069 $1,213,912 $1,212,511 

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 June 30,Six Months Ended June 30,
In thousands2025202420252024
Device Solutions$2,209 $2,832 $4,314 $5,430 
Networked Solutions3,513 3,997 7,076 8,015 
Outcomes1,278 1,504 2,616 2,960 
Corporate unallocated5,114 5,186 10,176 9,858 
Total Company$12,114 $13,519 $24,182 $26,263