Itron’s second quarter was shaped by resilient performance in its core Outcomes and Networked Solutions segments, as the company achieved flat year-over-year sales and expanded margins despite a challenging macroeconomic environment. Management attributed the quarter’s results to continued adoption of its Grid Edge Intelligence platform and growth in recurring software revenue, alongside operational discipline that drove record gross margin and free cash flow. However, CEO Tom Deitrich noted that ongoing trade policy uncertainty and customer budget constraints led to slower project deployments and more deliberate decision-making among utility clients, stating, “customers and regulators face a more complex environment, leading to slower project deployments and delayed decisions in certain areas.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Itron’s Q2 Earnings Call

• Noah Duke Kaye (Oppenheimer) probed whether margin gains were sustainable or unusually high. CFO Joan Hooper highlighted structural improvements from portfolio changes and said current margins are a good baseline for future planning.
• Jeffrey David Osborne (TD Cowen) questioned whether revenue delays were macro-driven or tied to customer-level execution. CEO Tom Deitrich clarified that project delays stem from utility clients stretching timelines due to capital constraints, but not outright cancellations.
• Jeffrey David Osborne (TD Cowen) also asked about regulatory approval pace and whether delays were abnormal. Deitrich responded that regulatory timelines remain typical, though deployments are leaning towards the longer end of the 9–12 month cycle.
• Benjamin Joseph Kallo (Baird) asked if the current environment affected Itron’s M&A strategy. Deitrich said regulatory complexity hadn’t changed acquisition plans, and the company remains active in seeking software- and service-focused targets.
• Alfred Shopland Moore (ROTH Capital Partners) sought clarification on European momentum for edge intelligence. Deitrich confirmed increasing traction and emphasized a focus on complete solutions for better returns in Western Europe.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be monitoring (1) utility project booking trends and whether deferred revenue returns as customers finalize budgets, (2) margin sustainability as Itron shifts further toward software and high-value solutions, and (3) regulatory approval pacing for key contracts, especially in international and municipal markets. Additional attention will be paid to progress on M&A activity and the scaling of recurring revenue streams.

Itron currently trades at $128.60, down from $138.42 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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