Itron, Inc. announced a new Advanced Metering Infrastructure (AMI) project with the City of Tucson and Tucson Water, Arizona, that will deploy 250,000 smart water communication modules as part of its bundled AMI Essentials for water solution. The modules will provide cellular Network‑as‑a‑Service connectivity and Temetra meter data management, and the project is slated for completion by the end of 2029.
The contract supports Tucson’s One Water 2100 Plan, which aims to reduce water loss and improve operational efficiency through real‑time visibility. By installing the modules, the city will be able to monitor usage, detect leaks, and optimize distribution, helping it meet long‑term water sustainability goals in an arid region.
Itron’s Q3 2025 financial results provide context for the deal. Revenue fell 5% YoY to $582 million, but the company beat earnings expectations with a non‑GAAP diluted EPS of $1.54 versus the consensus estimate of $1.48. The earnings beat was largely driven by disciplined cost management and a favorable product mix that increased the share of high‑margin Outcomes revenue, which rose while Device and Networked Solutions revenue declined. Gross margin expanded to 37.7% from 36.4% as the mix shift and operational efficiencies offset the revenue decline.
For Q4 2025, Itron guided revenue of $555–$565 million, below analyst estimates of roughly $600 million, reflecting a cautious outlook amid a slower customer purchase cycle. Management highlighted ongoing investments in AI and data analytics to enhance its water‑sector offerings and announced agreements to acquire Urbint for $325 million and Locusview for $525 million, moves that broaden the company’s capabilities in risk analytics and data‑driven insights.
The Tucson project underscores Itron’s ability to secure large utility contracts and expand its water‑sector presence, while the Q3 earnings and Q4 guidance illustrate the company’s resilience amid revenue headwinds and its focus on strategic acquisitions to support long‑term growth.
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