On February 26, 2024, Itron Inc (ITRI, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a global leader in energy and water resource management, reported significant increases in revenue, gross profit, and net income, highlighting strong operational execution and improved supply chain conditions.
Itron operates under three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment saw a revenue increase of 13% in Q4, driven by demand for smart water meters and communication modules. Networked Solutions revenue jumped by 30%, attributed to higher activity levels and improved supply chain conditions. Outcomes revenue grew by 10%, primarily due to increased services, despite a decrease in software license activity.
Financial Highlights
The company's gross margin improved by 390 basis points to 34.0%, reflecting cost efficiencies and a higher margin product mix. GAAP operating expenses increased by $19 million, while non-GAAP operating expenses rose by $20 million compared to the prior year. The increase in operating income, both GAAP and non-GAAP, was primarily due to higher gross profit, partially offset by higher operating expenses.
Net income attributable to Itron Inc for Q4 was $44 million, or $0.96 per diluted share, compared with a net income of $22 million, or $0.49 per diluted share in 2022. Non-GAAP net income for the quarter was $57 million, or $1.23 per diluted share, compared with $32 million, or $0.71 per diluted share in 2022.
Net cash provided by operating activities was $48 million in the fourth quarter compared with $(13) million in the prior year. Free cash flow was $39 million in the fourth quarter compared with $(18) million in the prior year.
"Itron’s fourth quarter results were very strong, and we concluded 2023 with good operational momentum," said Tom Deitrich, Itron’s president and CEO. "Our operations remained efficient and critical supply availability continued to improve resulting in record quarterly revenue levels for our Networked Solutions and Outcomes segments."
Outlook and Guidance
For the first quarter of 2024, Itron expects revenue between $575 and $585 million and non-GAAP diluted EPS between $0.80 and $0.90. The full-year 2024 financial guidance anticipates revenue between $2.275 to $2.375 billion and non-GAAP diluted EPS between $3.40 to $3.80.
Itron's strong performance in the fourth quarter and the full year of 2023 reflects the company's ability to navigate a complex environment and deliver innovative solutions for energy and water management. The company's financial achievements underscore its operational efficiency and the growing demand for its services, positioning Itron well for continued success in the future.
For more detailed information, investors and stakeholders are encouraged to review the full 8-K filing and listen to the earnings conference call.
Explore the complete 8-K earnings release (here) from Itron Inc for further details.
