ITRON, INC.ITRI
ITRON, INC. Segments Disclosure
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 in which we utilize 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 focused on worker safety, emergency preparedness and response, and damage prevention for critical infrastructure providers and their supporting contractors. These solutions 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.
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. Previously reported segment information has been recast for comparability.
Information about our reportable segments and Corporate unallocated and the reconciliation to income before income taxes was as follows:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Resiliency Solutions | Total | |||||||||||||||||||||||||||
| Product revenues | $ | 444,598 | $ | 1,442,243 | $ | 122,135 | $ | — | $ | 2,008,976 | ||||||||||||||||||||||
| Service revenues | 2,483 | 115,078 | 237,608 | 3,049 | 358,218 | |||||||||||||||||||||||||||
| Total revenues | 447,081 | 1,557,321 | 359,743 | 3,049 | 2,367,194 | |||||||||||||||||||||||||||
Adjusted cost of revenues (1) | 307,682 | 948,745 | 216,839 | 732 | ||||||||||||||||||||||||||||
| Adjusted sales, general and administrative | 13,283 | 27,929 | 16,921 | 1,000 | ||||||||||||||||||||||||||||
| Adjusted research and development | 17,399 | 108,247 | 48,991 | 1,426 | ||||||||||||||||||||||||||||
| Adjusted segment operating income (loss) | 108,717 | 472,400 | 76,992 | (109) | 658,000 | |||||||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||||||||
| Amortization of core-developed technology intangible assets | (1,078) | |||||||||||||||||||||||||||||||
| Corporate unallocated expenses | (343,854) | |||||||||||||||||||||||||||||||
| Total other income (expense) | 29,199 | |||||||||||||||||||||||||||||||
| Consolidated income before income taxes | $ | 342,267 | ||||||||||||||||||||||||||||||
(1)Excludes amortization of core-developed technology intangible assets.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Total | ||||||||||||||||||||||
| Product revenues | $ | 473,329 | $ | 1,546,278 | $ | 111,772 | $ | 2,131,379 | ||||||||||||||||||
| Service revenues | 3,248 | 103,797 | 202,413 | 309,458 | ||||||||||||||||||||||
| Total revenues | 476,577 | 1,650,075 | 314,185 | 2,440,837 | ||||||||||||||||||||||
Adjusted cost of revenues (1) | 353,113 | 1,052,295 | 196,112 | |||||||||||||||||||||||
| Adjusted sales, general and administrative | 13,627 | 27,676 | 15,826 | |||||||||||||||||||||||
| Adjusted research and development | 16,315 | 113,442 | 50,517 | |||||||||||||||||||||||
| Adjusted segment operating income (loss) | 93,522 | 456,662 | 51,730 | 601,914 | ||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||
| Amortization of core-developed technology intangible assets | — | |||||||||||||||||||||||||
| Corporate unallocated expenses | (337,804) | |||||||||||||||||||||||||
| Total other income (expense) | 20,421 | |||||||||||||||||||||||||
| Consolidated income before income taxes | $ | 284,531 | ||||||||||||||||||||||||
(1)Excludes amortization of core-developed technology intangible assets.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Total | ||||||||||||||||||||||
| Product revenues | $ | 452,718 | $ | 1,331,546 | $ | 79,225 | $ | 1,863,489 | ||||||||||||||||||
| Service revenues | 3,008 | 118,745 | 188,391 | 310,144 | ||||||||||||||||||||||
| Total revenues | 455,726 | 1,450,291 | 267,616 | 2,173,633 | ||||||||||||||||||||||
Adjusted cost of revenues (1) | 349,809 | 950,566 | 159,350 | |||||||||||||||||||||||
| Adjusted sales, general and administrative | 13,846 | 26,055 | 14,428 | |||||||||||||||||||||||
| Adjusted research and development | 26,381 | 104,749 | 43,492 | |||||||||||||||||||||||
| Adjusted segment operating income (loss) | 65,690 | 368,921 | 50,346 | 484,957 | ||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||
| Amortization of core-developed technology intangible assets | — | |||||||||||||||||||||||||
| Corporate unallocated expenses | (356,090) | |||||||||||||||||||||||||
| Total other income (expense) | (1,481) | |||||||||||||||||||||||||
| Consolidated income before income taxes | $ | 127,386 | ||||||||||||||||||||||||
(1)Excludes amortization of core-developed technology intangible assets.
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Total | ||||||||||||||||||||||
| Product revenues | $ | 103,097 | $ | 365,378 | $ | 25,848 | $ | 494,323 | ||||||||||||||||||
| Service revenues | 525 | 28,324 | 58,453 | 87,302 | ||||||||||||||||||||||
| Total revenues | 103,622 | 393,702 | 84,301 | 581,625 | ||||||||||||||||||||||
Adjusted cost of revenues (1) | 71,615 | 238,941 | 51,524 | |||||||||||||||||||||||
| Adjusted sales, general and administrative | 2,900 | 6,695 | 3,707 | |||||||||||||||||||||||
| Adjusted research and development | 4,232 | 26,186 | 12,264 | |||||||||||||||||||||||
| Adjusted segment operating income (loss) | 24,875 | 121,880 | 16,806 | 163,561 | ||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||
| Amortization of core-developed technology intangible assets | — | |||||||||||||||||||||||||
| Corporate unallocated expenses | (81,778) | |||||||||||||||||||||||||
| Total other income (expense) | 8,918 | |||||||||||||||||||||||||
| Consolidated income before income taxes | $ | 90,701 | ||||||||||||||||||||||||
(1)Excludes amortization of core-developed technology intangible assets.
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Total | ||||||||||||||||||||||
| Product revenues | $ | 111,939 | $ | 379,481 | $ | 25,764 | $ | 517,184 | ||||||||||||||||||
| Service revenues | 821 | 29,453 | 59,303 | 89,577 | ||||||||||||||||||||||
| Total revenues | 112,760 | 408,934 | 85,067 | 606,761 | ||||||||||||||||||||||
Adjusted cost of revenues (1) | 79,169 | 251,691 | 52,283 | |||||||||||||||||||||||
| Adjusted sales, general and administrative | 3,628 | 7,477 | 4,636 | |||||||||||||||||||||||
| Adjusted research and development | 4,509 | 28,767 | 12,461 | |||||||||||||||||||||||
| Adjusted segment operating income (loss) | 25,454 | 120,999 | 15,687 | 162,140 | ||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||
| 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.
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| In thousands | Device Solutions | Networked Solutions | Outcomes | Total | ||||||||||||||||||||||
| Product revenues | $ | 125,387 | $ | 374,522 | $ | 23,232 | $ | 523,141 | ||||||||||||||||||
| Service revenues | 484 | 28,210 | 55,316 | 84,010 | ||||||||||||||||||||||
| Total revenues | 125,871 | 402,732 | 78,548 | 607,151 | ||||||||||||||||||||||
Adjusted cost of revenues (1) | 88,118 | 254,018 | 47,796 | |||||||||||||||||||||||
| Adjusted sales, general and administrative | 3,328 | 6,680 | 4,077 | |||||||||||||||||||||||
| Adjusted research and development | 3,954 | 25,925 | 12,345 | |||||||||||||||||||||||
| Adjusted segment operating income (loss) | 30,471 | 116,109 | 14,330 | 160,910 | ||||||||||||||||||||||
| Reconciliation of adjusted segment operating income (loss) | ||||||||||||||||||||||||||
| Amortization of core-developed technology intangible assets | — | |||||||||||||||||||||||||
| Corporate unallocated expenses | (84,697) | |||||||||||||||||||||||||
| Total other income (expense) | 6,066 | |||||||||||||||||||||||||
| Consolidated income before income taxes | $ | 82,279 | ||||||||||||||||||||||||
(1)Excludes amortization of core-developed technology intangible assets.
For all periods presented, no single customer represented more than 10% of total company revenue.
Revenues by region were as follows:
| Year Ended December 31, | |||||||||||||||||
| In thousands | 2025 | 2024 | 2023 | ||||||||||||||
| United States and Canada | $ | 1,927,475 | $ | 2,007,045 | $ | 1,733,680 | |||||||||||
| Europe, Middle East, and Africa | 318,510 | 338,997 | 340,854 | ||||||||||||||
Asia Pacific | 121,209 | 94,795 | 99,099 | ||||||||||||||
| Total Company | $ | 2,367,194 | $ | 2,440,837 | $ | 2,173,633 | |||||||||||
Property, plant, and equipment, net, by geographic area were as follows:
December 31, | |||||||||||
| In thousands | 2025 | 2024 | |||||||||
| United States | $ | 69,322 | $ | 73,878 | |||||||
| Outside United States | 42,871 | 41,550 | |||||||||
| Total Company | $ | 112,193 | $ | 115,428 | |||||||
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:
| Year Ended December 31, | |||||||||||||||||
| In thousands | 2025 | 2024 | 2023 | ||||||||||||||
| Device Solutions | $ | 8,994 | $ | 12,145 | $ | 12,348 | |||||||||||
| Networked Solutions | 13,876 | 16,545 | 16,314 | ||||||||||||||
| Outcomes | 5,817 | 6,372 | 5,433 | ||||||||||||||
Resiliency Solutions | 476 | — | — | ||||||||||||||
| Corporate unallocated | 20,354 | 21,215 | 21,668 | ||||||||||||||
| Total Company | $ | 49,517 | $ | 56,277 | $ | 55,763 | |||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.