v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate under the Itron brand worldwide and manage and report under four reportable segments: Device Solutions, Networked Solutions, Outcomes, and Resiliency Solutions. Resiliency Solutions is a new reportable segment starting in the fourth quarter of 2025. 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. 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 designed to operate outside of Itron end-to-end solutions and designed to meet market requirements; and the implementation and installation of associated devices.

Networked Solutions – This segment primarily includes a combination of communicating endpoints (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 endpoints 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, including use of distributed compute to manage, organize, analyze, and interpret raw, anonymized data using artificial intelligence, machine learning, statistical modeling, and other analytics. This delivers new value for utilities, municipalities, and cities through improving decision making, maximizing operational profitability, engaging consumers, ensuring safety, enhancing resource efficiency, and improving grid resiliency and reliability. Outcomes supports high-value use cases, such as data management, grid planning and operations, AMI operations, gas distribution safety, non-revenue water reduction, revenue assurance, distributed energy resources (DER) management, energy forecasting, consumer engagement, and smart payment. 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 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.

Resiliency Solutions – This segment primarily includes software and services for worker safety, emergency preparedness and response, damage prevention, and digital construction management for critical infrastructure providers and their supporting contractors. These solutions enable utilities to plan smarter, respond faster, and operate more safely and are enhanced through the use of artificial intelligence-based models to predict events to aid in compliance, incident remedy, and prevention.

Intersegment revenues are minimal. Certain operating expenses are allocated to the reportable 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. These amounts are not included in the significant segment expense amounts below. 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. Other income (expense) primarily includes interest income, interest expense, and amortization of prepaid debt fees, and is not allocated to our segments.

The CODM assesses the segments' performance primarily by using each segment's adjusted operating income, predominantly in the annual budget and periodic forecasting processes. 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, including evaluating pricing strategy. Prior to the fourth quarter of 2025, the CODM used gross margin as the primary segment performance metric. Starting in the fourth quarter of 2025, the CODM believes adjusted segment operating income provides a more complete metric for allocating resources and assessing segment performance in line with our recent business acquisition and exclusion of amortization of core-developed technology.
Information about our reportable segments and Corporate unallocated and the reconciliation to income before income taxes was as follows:

Three Months Ended June 30, 2026
In thousandsDevice Solutions
Networked Solutions
OutcomesResiliency SolutionsTotal
Product revenues$110,940 $309,201 $32,883 $438 $453,462 
Service revenues505 30,037 63,516 15,382 109,440 
Total revenues111,445 339,238 96,399 15,820 562,902 
Adjusted cost of revenues (1)
72,686 194,084 59,019 3,903 
Adjusted sales, general and administrative3,026 7,185 4,567 2,728 
Adjusted research and development4,212 25,908 12,271 4,813 
Adjusted segment operating income31,521 112,061 20,542 4,376 168,500 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets(2,570)
Corporate unallocated expenses(89,864)
Total other income (expense)4,140 
Consolidated income before income taxes$80,206 
(1) Excludes amortization of core-developed technology intangible assets.
Six Months Ended June 30, 2026
In thousandsDevice Solutions
Networked Solutions
OutcomesResiliency SolutionsTotal
Product revenues$234,668 $630,348 $64,755 $1,492 $931,263 
Service revenues1,154 59,553 127,554 30,360 218,621 
Total revenues235,822 689,901 192,309 31,852 1,149,884 
Adjusted cost of revenues (1)
153,044 401,674 114,905 8,237 
Adjusted sales, general and administrative6,003 14,466 9,826 5,729 
Adjusted research and development8,362 51,564 24,681 9,179 
Adjusted segment operating income68,413 222,197 42,897 8,707 342,214 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets(5,065)
Corporate unallocated expenses(193,506)
Total other income (expense)3,758 
Consolidated income before income taxes$147,401 
(1) Excludes amortization of core-developed technology intangible assets.
Three Months Ended June 30, 2025
In thousandsDevice Solutions
Networked Solutions
OutcomesTotal
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 
Adjusted cost of revenues (1)
79,169 251,691 52,283 
Adjusted sales, general and administrative3,628 7,477 4,636 
Adjusted research and development4,509 28,767 12,461 
Adjusted segment operating income25,454 120,999 15,687 162,140 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets— 
Corporate unallocated expenses(85,727)
Total other income (expense)7,069 
Consolidated income before income taxes$83,482 
(1) Excludes amortization of core-developed technology intangible assets.
Six Months Ended June 30, 2025
In thousandsDevice Solutions
Networked Solutions
OutcomesTotal
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 
Adjusted cost of revenues (1)
167,287 505,709 100,079 
Adjusted sales, general and administrative6,956 14,157 8,713 
Adjusted research and development8,463 54,692 24,806 
Adjusted segment operating income55,925 237,108 30,017 323,050 
Reconciliation of adjusted segment operating income
Amortization of core-developed technology intangible assets— 
Corporate unallocated expenses(170,424)
Total other income (expense)13,135 
Consolidated income before income taxes$165,761 
(1) Excludes amortization of core-developed technology intangible assets.

For the three and six months ended June 30, 2026 and 2025, 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 thousands2026202520262025
United States and Canada$448,316 $500,535 $902,835 $986,747 
Europe, Middle East, and Africa83,894 78,579 185,101 174,905 
Asia Pacific30,692 27,647 61,948 52,260 
Total Company$562,902 $606,761 $1,149,884 $1,213,912 

Depreciation expense and amortization expense recognized in cost of revenues is allocated to the reportable segments based upon each segment's use of the assets. All amortization expense recognized in operating expenses is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our reportable segments and Corporate unallocated was as follows:
Three Months Ended June 30,Six Months Ended June 30,
In thousands2026202520262025
Device Solutions$2,121 $2,209 $4,325 $4,314 
Networked Solutions2,976 3,513 6,089 7,076 
Outcomes1,678 1,278 3,451 2,616 
Resiliency Solutions2,612 — 5,136 — 
Corporate unallocated9,239 5,114 18,161 10,176 
Total Company$18,626 $12,114 $37,162 $24,182