Itron, Inc.

2025 earnings conference call. At this time, all participants are on the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Paul Vincent, Vice President of Investillations. Please go ahead.

Good morning, and welcome to ITRON's third quarter 2025 earnings conference call. Tom Dietrich, ITRON's president and chief executive officer, and Joan Hooper, senior vice president and chief financial officer, will review ITRON's third quarter results and provide a general business update and outlook. Earlier today, the company issued a press release announcing its results. This release also includes details related to the conference call and webcast replay information. Accompanying today's call is a presentation that is available through the webcast and on our corporate website under the Investor Relations tab. Following prepared remarks, the call will open for questions using the process the operator described. Before Tom begins, a reminder that our earnings release and financial presentation include non-GAAP financial information that we believe enhances the overall understanding of our current and future performance. Reconciliations of differences between GAAP and non-GAAP financial measures are available in our earnings release and on our investor relations website. We will be making statements during this call that are forward-looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from these expectations because of factors that were presented in today's earnings release and comments made during this conference call, as well as those presented in the risk factor section of our Form 10-K and other reports and filings with the Securities and Exchange Commission. All company comments, estimates, or forward-looking statements are made in a good faith attempt to provide appropriate insight to our current and future operating and financial environment. Materials discussed today, October 30th, 2025, may materially change, and we do not undertake any duty to update any of our forward-looking statements. Now, please turn to page four of our presentation. As our CEO, Tom Dietrich, begins his remarks.

Thank you, Paul. Good morning and thank you for joining our call. During the third quarter, ITRON set new records for margins, profit, and free cash flow on revenue in line with expectations. Financial highlights on slide four include revenue of $582 million, adjusted EBITDA of $97 million, non-GAAP earnings per share of $1.54, and free cash flow of $113 million. On slide five, our third quarter bookings were $380 million with a total backlog at the end of the quarter of $4.3 billion. Turning to slide six, utilities are operating in an increasingly complex environment marked by accelerating load growth, rising costs, heightened regulatory scrutiny, and greater technical demands. Customers are adapting to this landscape by sequencing initiatives and, in some cases, extending project deployment schedules. While regulators generally share utility strategic objectives, growing sensitivity to consumer costs is leading to more rigorous evaluation of project investments. Despite a slower pace on some projects, our customers remain focused on enhancing grid performance and reliability through the adoption of grid edge technology that delivers greater visibility and control at the edge. This is reflected in the ongoing expansion of distributed intelligence-enabled endpoints, which topped 16 million deployed by the end of the third quarter, with more than 10 million additional units in backlog. Licensed DI applications grew 119% year-over-year to 20 million at quarter end. Grid edge intelligence defines the future of agile data-driven distribution infrastructure and continues to expand opportunities for our outcome segment, which grew 11% year-over-year, led by higher recurring revenue. With respect to recent federal funding actions, ITRON has seen no project cancellations, stoppages, or decline in customer interest. However, these deployments introduce greater near-term market uncertainty and add to the complex challenges our customers face. Lower than expected Q3 bookings and heightened uncertainty have tempered our year-end booking expectations. While achieving a one-to-one book-to-bill ratio for 2025 remains possible, we anticipate current dynamics to persist this quarter resulting in bookings below that target. Although project conversion to backlog is taking longer, Lumpy bookings are a familiar pattern and do not alter our long-term business trajectory. Importantly, these changes are not due to competitive dynamics nor fundamental changes in the market. Our opportunity pipeline has expanded by over 25% since the start of the year. Moreover, outcomes-related bookings continue to lead relative backlog growth across our three segments. Lastly, we recently announced the acquisition of Urbant with the transaction expected to close during the fourth quarter of 2025. The Urban business aligns well with our M&A priorities. Its software-oriented, scalable platform complements our current portfolio and addresses the needs of critical infrastructure providers. Urban's SaaS business model delivers solutions for emergency preparedness and response, damage prevention, and worker safety. We are excited to welcome the Urban team on board soon. We will share more details about IRBINT and the expanded ITRON portfolio on our next quarterly call. Now Joan will provide details about our third quarter and our outlook for the fourth quarter.