Itron, Inc.

Good day and thank you for standing by. Welcome to ITRON's second quarter 2026 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 the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. 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 second quarter 2026 earnings conference call. Tom Deitrich, ITRON's president and chief executive officer, and Joan Hooper, senior vice president and chief financial officer, will review ITRON's second 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 factors 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, July 28, 2026, 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 Deitrich, begins his remarks.

Thank you, Paul. Good morning, everyone, and thank you for joining us today. ITRON delivered a high-quality second quarter. Record gross margin, strong free cash flow, and earnings well ahead of our expectations on inline revenue. That combination is the story of the quarter. The operating model we have built now delivers structurally better earnings power. Turning to slide four for the highlights. Revenue of $563 million. Annual recurring revenue of $417 million. Adjusted EBITDA of $97 million. Non-GAAP earnings per share of $1.59 and free cash flow of $81 million. Turning to slide five, I want to put the quarter in the context of the market environment. Itron is a different company today than in prior cycles, and this quarter proved it. A meaningful portion of our business is built around large, multi-year utility programs, so deployment timing can move between quarters. What has changed is our ability to perform through those variations. We delivered record gross margin on lower revenue, driven by better mix, strong execution, and the operational efficiency measures our team has embedded across the business. Not every quarter will set a record, but the improvements behind this one are structural, and we believe here to stay. The long-term infrastructure build-out across electricity, gas, and water systems is durable and, in our view, inevitable. Utilities are managing systems under real strain, affordability pressures, rising reliability and resiliency requirements, and new demand patterns, including industrial load growth and AI-driven power demand. Layer on distributed energy resources and weather volatility and the operating challenge compounds. These pressures are not temporary. They are durable, and they are pushing utilities towards solutions that provide better visibility, more automation, and more intelligence at the edge of the network. In electricity, we continue to see strong demand for non-wires alternatives, time to power solutions, and resiliency applications. The common thread, customers want to do more with the infrastructure they already have, unlocking the capacity embedded in their distribution systems, reducing waste, and deferring or optimizing capital-intensive upgrades. These are the exact problems our solutions are built to solve. The gas opportunity remains well above historical norms, with customer focused on safety, system modernization, and operational efficiency. In water, particularly in Europe, Demand remains positive for solutions that address scarcity and improve network performance. The regulatory environment remains multifaceted, mirroring our customers' reality, but it is constructive. Affordability, reliability, and resiliency are front and center for regulators, just as they are for utilities, and that alignment reinforces the demand for exactly the solution ITRON provides. Regulatory calendars shape when programs move forward, rarely whether they move at all. Turning to slide six, second quarter bookings were $550 million in line with our expectations, and the total backlog stood at $4.4 billion at quarter end. Large individual customer decisions are generally tied to regulatory processes, so project-based bookings will always be uneven quarter to quarter. What matters is the pipeline behind them. It continues to grow with rich opportunity set heading into the back half of this year into 2027 and beyond. Noteworthy wins in the quarter illustrate that demand. We are pleased to support 1789 Lux partners and several municipalities as they deploy our platform as a service offering to improve operational performance and reduce the total cost of delivering electricity, gas, and water services. These programs demonstrate that our technology is expanding its reach and gaining market share within the mid-market utility segment. Los Angeles Department of Water and Power, LADWP, is expanding its use of ITRON's platform and services, employing our operations management solution to increase the pace and scale of its deployment. Additionally, Sacramento Municipal Utility District, or SMUD, will expand its deployment of our REVA solution, increasing the capability of the platform and the reach of distributed intelligence. The pattern is clear. Investor-owned utilities and, more recently, municipalities and public power customers are selecting our platform, both where ITRON is the incumbent and in head-to-head competition. Our wins also reflect an evolution in how utilities modernize. Prior generations of technology were rolled out almost entirely as Big Bang replacements. Today, utilities choose between that full-scale approach and continuous focus programs that address affordability, build capability, and reduce risk. Both paths lead to ITRON, and the continuous model adds a steady extension of the installed base and recurring revenue in parallel with larger program awards. Customers choose ITRON because our platform solves multiple challenges, We deliver networks, software, analytics, and applications, an intelligence layer that creates operational visibility and enables better decisions across electricity, gas, and water systems. That platform approach matters. It lets customers start with a defined need and expand value over time, and it strengthens ITRON's business model by deepening customer relationships, growing our base, and increasing the contribution from software, services and recurring revenue. You can see the model working across our second quarter results. Outcomes again delivered strong year-over-year growth and annual recurring revenue grew by approximately 21% year-over-year. Clear evidence of the continued adoption of ITRON's higher value offerings and the durability we are building into the revenue base. Turning to operations, the environment rewards discipline. Our supply chain is steady across labor and materials. We are proactively managing pockets of tightness, memory pricing in particular, and importantly, we are not seeing broad labor or material constraints that would change our view of deployment activity. Integration of resiliency solutions segment is tracking to plan. These acquisitions expand our ability to solve mission-critical problems for utilities and deepen the intelligence we bring to the increasingly complex networks. Overall, the second quarter reflects the operating model we have been building, more resilient with greater earnings leverage. On the outlook, we are narrowing our four-year range while raising the earnings outlook on the strength of our operating execution. With that, I turn the call over to Joan to walk through the second quarter financials and the outlook in more detail.