Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Paul Vincent – Vice President, Investor Relations ©2024 ITRON CONFIDENTIAL PROPRIETARY August 1, 2024
Slide 2: Conference Call Agenda
Conference Call Agenda ▪ CEO – Business and Operations Update ▪ CFO – Financial Results and Guidance Update ▪ Q&A
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither h
Slide 4: Second Quarter 2024 Performance Highlights
Second Quarter 2024 Performance Highlights » Seventh consecutive quarter of growth » Continued profitability improvement » Strong team performance » Record quarterly revenue for Networked Solutions and Outcomes » Market demand remains stable ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conf
Slide 5: Second Quarter 2024 Financial Summary
Second Quarter 2024 Financial Summary » Revenue of $609 million » Adjusted EBITDA of $77 million » Non-GAAP diluted EPS of $1.21 » Free cash flow of $45 million ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 5
Slide 6: Bookings and Backlog
Bookings and Backlog » Q2 2024 bookings of $447M $4.4 $4.2 $4.5 $4.3 $4.1 » Book to bill of 0.7 » Ending backlog of $4.1B $2.0 $2.0 $2.0 $1.9 $1.8 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 12-Month Backlog Total Backlog - Chart in US$ billions, the revenue from Q2’24 12-month backlog may vary based on actual cu
Slide 7: Consolidated GAAP Results: Q2 2024
Consolidated GAAP Results: Q2 2024 $ in millions (except per share amounts) Q2 2024 Q2 2023 Change Revenue $609.1 $541.1 13% Change in constant currency 13% Gross margin 34.6% 32.1% 250 bps Operating income $64.6 $35.1 84% Net income attributable to Itron, Inc. $51.3 $24.2 112% Earnings per share –
Slide 8: Consolidated Non-GAAP & Cash Results: Q2 2024
Consolidated Non-GAAP & Cash Results: Q2 2024 $ in millions (except per share amounts) Q2 2024 Q2 2023 Change Non-GAAP operating income $69.1 $41.4 67% Non-GAAP operating margin 11.3% 7.6% 370 bps Non-GAAP net income attributable to Itron, Inc. $56.1 $29.8 88% Adjusted EBITDA $77.1 $49.3 56% Adjuste
Slide 9: Revenue Year-Over-Year Bridge: Q2 2024
Revenue Year-Over-Year Bridge: Q2 2024 +6% +14% +16% +13% Chart in millions and includes rounding. Segment changes in constant currency. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 9
Slide 10: Non-GAAP EPS Year-Over-Year Bridge: Q2 2024
Non-GAAP EPS Year-Over-Year Bridge: Q2 2024 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 10
Slide 11: Device Solutions Segment: Q2 2024
Device Solutions Segment: Q2 2024 Revenue, gross margin and operating margin $ in millions, actual currency Revenue increased 5% (6% in constant currency) $119 $113 » Growth in smart water sales 26.3% Gross margin increased 450 bps 21.8% » Favorable product mix 20.0% » Cost efficiencies Operating ma
Slide 12: Networked Solutions Segment: Q2 2024
Networked Solutions Segment: Q2 2024 Revenue, gross margin and operating margin $ in millions, actual currency $413 Revenue increased 14% (14% in constant currency) $361 » Increased ongoing and new project deployments 36.9% » Conversion of previously constrained revenue 33.8% » Record segment quarte
Slide 13: Outcomes Segment: Q2 2024
Outcomes Segment: Q2 2024 Revenue, gross margin and operating margin $ in millions, actual currency $78 Revenue increased 16% (16% in constant currency) $67 » Increase in recurring revenue and services » Record segment quarterly revenue 40.8% 34.8% Gross margin decreased 600 bps » Lower margin reven
Slide 14: Debt and Liquidity Overview: June 30, 2024
Debt and Liquidity Overview: June 30, 2024 US$M Debt » Net leverage 1.2x at end of Q2 2024 $1,265 » $460M 0% interest convertible notes, 2026 maturity » $805M 1.375% interest convertible notes, 2030 maturity $344 Free Cash Flow and Liquidity » Free cash flow of $45M in Q2 » Cash and equivalents of $
Slide 15: Q3 2024 Outlook
Q3 2024 Outlook Revenue of $590 - $600 million » At the midpoint, up $34M or 6% vs. Q3 2023 Non-GAAP diluted EPS of $1.10 - $1.20 » At the midpoint, up $0.17 or 17% vs. Q3 2023 ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 15
Slide 16: 2024 Full-Year Guidance Update
2024 Full-Year Guidance Update February 2024 Revised Guidance Guidance Revenue $2.275 - $2.375B $2.385 - $2.415B Non-GAAP EPS $3.40 - $3.80 $4.45 - $4.65 » Revenue, at the midpoint, up 3% vs. prior guidance and up 10% vs. 2023 » NG EPS, at the midpoint, up 26% vs. prior guidance and up 35% vs. 2023
Slide 17: Appendix
Appendix ©2024 ITRON CONFIDENTIAL PROPRIETARY 17
Slide 18: Consolidated GAAP Results: YTD 2024
Consolidated GAAP Results: YTD 2024 $ in millions (except per share amounts) YTD 2024 YTD 2023 Change Revenue $1,212.5 $1,035.7 17% Growth in constant currency 17% Gross margin 34.3% 31.9% 240 bps Operating income $127.4 $24.7 416% Net income attributable to Itron, Inc. $103.0 $12.4 733% Earnings pe
Slide 19: Consolidated Non-GAAP & Cash Results: YTD 2024
Consolidated Non-GAAP & Cash Results: YTD 2024 $ in millions (except per share amounts) YTD 2024 YTD 2023 Change Non-GAAP operating income $136.4 $72.7 88% Non-GAAP operating margin 11.3% 7.0% 430 bps Non-GAAP net income attributable to Itron, Inc. $113.4 $52.2 117% Adjusted EBITDA $153.6 $88.8 73%
Slide 20: Revenue Year-Over-Year Bridge: YTD 2024
Revenue Year-Over-Year Bridge: YTD 2024 +6% +22% +13% +17% Chart in millions and includes rounding. Segment changes in constant currency. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 20
Slide 21: Non-GAAP EPS Year-Over-Year Bridge: YTD 2024
Non-GAAP EPS Year-Over-Year Bridge: YTD 2024 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 21
Slide 22: Device Solutions Segment: YTD 2024
Device Solutions Segment: YTD 2024 Revenue, gross margin and operating margin $ in Millions, actual currency $245 Revenue up 6% (6% in constant currency) $231 » Growth in smart water sales 25.0% Gross margin up 410 bps 20.9% » Favorable product mix 18.5% » Cost efficiencies Operating margin up 630 b
Slide 23: Networked Solutions Segment: YTD 2024
Networked Solutions Segment: YTD 2024 Revenue, gross margin and operating margin $ in Millions, actual currency $820 Revenue up 22% (22% in constant currency) $674 » Improved component supply 37.0% » Increased ongoing and new project deployments 33.8% Gross margin up 320 bps » Favorable product mix
Slide 24: Outcomes Segment: YTD 2024
Outcomes Segment: YTD 2024 Revenue, gross margin and operating margin $ in Millions, actual currency $147 $130 Revenue up 13% (13% in constant currency) 41.8% » Increase in recurring revenue and services 34.9% Gross margin down 690 bps » Lower margin revenue mix » Increased services costs 19.7% 13.4
Slide 25: FX Impact Summary
FX Impact Summary $ in Millions Average USD/Euro: Average USD/Euro: $1.08 Q2’24 vs $1.09 Q2’23 $1.08 YTD’24 vs $1.08 YTD’23 YoY YoY Change YoY YoY Change Revenue Q2’24 Excluding Revenue YTD’24 Excluding Change Change FX FX Device Solutions $118.6 4.8% 5.7% Device Solutions $245.3 6.0% 6.0% Networked
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operatin
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 27
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q2 2024 Earnings Conference Call | 28
Slide 29: Thank You
INVESTOR RELATIONS CONTACTS Paul Vincent Vice President, Investor Relations 512-560-1172 paul.vincent@itron.com David Means Director, Investor Relations 737-242-8448 david.means@itron.com Thank You www.itron.com