Slide 1: Third Quarter 2024 Earnings Conference Call
Third 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 October 31, 2024
Slide 2: Conference Call Agenda
Conference Call Agenda ▪ CEO – Business and Operations Update ▪ CFO – Financial Results and Outlook ▪ 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: Third Quarter 2024 Performance Highlights
Third Quarter 2024 Performance Highlights » Business momentum continued during the quarter » Solid operational execution and team performance » Growth in energy and water needs continue to fuel demand » Tracking to full year bookings expectations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 2024 Earnings
Slide 5: Third Quarter 2024 Financial Summary
Third Quarter 2024 Financial Summary » Revenue of $615 million » Adjusted EBITDA of $89 million » Non-GAAP diluted EPS of $1.84 » Free cash flow of $59 million ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 2024 Earnings Conference Call | 5
Slide 6: Bookings and Backlog
Bookings and Backlog » Q3 2024 bookings of $487M $4.2 $4.5 $4.3 $4.1 $4.0 » Book to bill of 0.8 » Ending backlog of $4.0B $2.0 $2.0 $1.9 $1.8 $1.7 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 12-Month Backlog Total Backlog - Chart in US$ billions, the revenue from Q3’24 12-month backlog may vary based on actual cu
Slide 7: Consolidated GAAP Results: Q3 2024
Consolidated GAAP Results: Q3 2024 $ in millions (except per share amounts) Q3 2024 Q3 2023 Change Revenue $615.5 $560.8 10% Change in constant currency 10% Gross margin 34.1% 33.4% 70 bps Operating income $73.9 $54.9 35% Net income attributable to Itron, Inc. $78.0 $40.2 94% Earnings per share – di
Slide 8: Consolidated Non-GAAP & Cash Results: Q3 2024
Consolidated Non-GAAP & Cash Results: Q3 2024 $ in millions (except per share amounts) Q3 2024 Q3 2023 Change Non-GAAP operating income $79.0 $59.0 34% Non-GAAP operating margin 12.8% 10.5% 230 bps Non-GAAP net income attributable to Itron, Inc. $84.3 $44.9 88% Adjusted EBITDA $88.6 $68.5 29% Adjust
Slide 9: Revenue Year-Over-Year Bridge: Q3 2024
Revenue Year-Over-Year Bridge: Q3 2024 +10% +8% +16% +10% Chart in millions and includes rounding. Segment changes in constant currency. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 2024 Earnings Conference Call | 9
Slide 10: Non-GAAP EPS Year-Over-Year Bridge: Q3 2024
Non-GAAP EPS Year-Over-Year Bridge: Q3 2024 US$ per share * * Q3 tax impact includes a $0.30 per share favorable resolution of a foreign tax audit Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2024 ITRON CONFIDENTIAL PROPRI
Slide 11: Device Solutions Segment: Q3 2024
Device Solutions Segment: Q3 2024 Revenue, gross margin and operating margin $ in millions, actual currency Revenue increased 11% (10% in constant currency) $123 » Growth in smart water and electric demand $111 Gross margin increased 290 bps 27.2% » Volume and operational efficiencies 24.3% 21.6% Op
Slide 12: Networked Solutions Segment: Q3 2024
Networked Solutions Segment: Q3 2024 Revenue, gross margin and operating margin $ in millions, actual currency $417 $385 Revenue increased 8% (8% in constant currency) » Increased new projects and ongoing deployments » Record segment quarterly revenue 35.9% 35.1% Gross margin increased 80 bps » Volu
Slide 13: Outcomes Segment: Q3 2024
Outcomes Segment: Q3 2024 Revenue, gross margin and operating margin $ in millions, actual currency $76 Revenue increased 17% (16% in constant currency) $65 » Increase in recurring revenue, services and software 38.6% Gross margin decreased 360 bps 35.0% » Lower margin revenue mix » Increased servic
Slide 14: Debt and Liquidity Overview: September 30, 2024
Debt and Liquidity Overview: September 30, 2024 US$M Debt » Net leverage 0.9x at end of Q3 2024 $1,265 » $460M 0% interest convertible notes, 2026 maturity » $805M 1.375% interest convertible notes, 2030 maturity Free Cash Flow and Liquidity $282 » Free cash flow of $59M in Q3 » Cash and equivalents
Slide 15: Q4 2024 Outlook
Q4 2024 Outlook Revenue of $600 - $610 million » At the midpoint, up $28M or 5% vs. Q4 2023 Non-GAAP diluted EPS of $1.00 - $1.10 » At the midpoint, down -$0.18 or -15% vs. Q4 2023 » Q4 2023 ETR was 8%; normalized for 25% ETR, Y/Y growth is $0.06 or 6% ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 2024 Ea
Slide 16: 2024 Full-Year Guidance Update
2024 Full-Year Guidance Update February 2024 August 2024 Revised Guidance Guidance Guidance Revenue $2.275 - $2.375B $2.385 - $2.415B $2.428 - $2.438B Non-GAAP EPS $3.40 - $3.80 $4.45 - $4.65 $5.28 - $5.38 » Revenue, at the midpoint, up 1% vs. prior guidance and up 12% vs. 2023 » NG EPS, at the midp
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 $1,828.0 $1,596.5 15% Growth in constant currency 14% Gross margin 34.2% 32.4% 180 bps Operating income $201.4 $79.6 153% Net income attributable to Itron, Inc. $181.0 $52.5 245% 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 $215.4 $131.7 64% Non-GAAP operating margin 11.8% 8.2% 360 bps Non-GAAP net income attributable to Itron, Inc. $197.6 $97.1 104% Adjusted EBITDA $242.2 $157.2 54
Slide 20: Revenue Year-Over-Year Bridge: YTD 2024
Revenue Year-Over-Year Bridge: YTD 2024 +7% +17% +14% +15% Chart in millions and includes rounding. Segment changes in constant currency. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 2024 Earnings Conference Call | 20
Slide 21: Non-GAAP EPS Year-Over-Year Bridge: YTD 2024
Non-GAAP EPS Year-Over-Year Bridge: YTD 2024 US$ per share Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes rounding. ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 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 $368 Revenue up 8% (7% in constant currency) $342 » Growth in smart water sales 25.7% Gross margin up 370 bps 22.0% » Favorable product mix 19.5% » Volume and operational efficiencies Operati
Slide 23: Networked Solutions Segment: YTD 2024
Networked Solutions Segment: YTD 2024 Revenue, gross margin and operating margin $ in Millions, actual currency $1,237 $1,059 Revenue up 17% (17% in constant currency) » Increased new projects and ongoing deployments 36.6% » Improved component supply 34.3% Gross margin up 230 bps » Favorable product
Slide 24: Outcomes Segment: YTD 2024
Outcomes Segment: YTD 2024 Revenue, gross margin and operating margin $ in Millions, actual currency $223 $195 Revenue up 14% (14% in constant currency) » Increase in recurring revenue and services 40.7% 35.0% Gross margin down 570 bps » Lower margin revenue mix » Increased services costs 18.4% 13.9
Slide 25: FX Impact Summary
FX Impact Summary $ in Millions Average USD/Euro: Average USD/Euro: $1.10 Q3’24 vs $1.09 Q3’23 $1.09 YTD’24 vs $1.08 YTD’23 YoY YoY Change YoY YoY Change Revenue ’ Excluding Revenue ’ Excluding Change Change FX FX Device Solutions $122.7 10.8% 10.3% Device Solutions $368.0 7.6% 7.4% Networked Soluti
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 Q3 2024 Earnings Conference Call | 27
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ©2024 ITRON CONFIDENTIAL PROPRIETARY Q3 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