Itron: Acquisitions Come At A Price

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryItron faces muted sales growth and soft bookings despite a strong margin performance and sound business positioning in industrial IoT.Recent $850 million acquisitions of Urbint and Locusview appear expensive, with limited near-term financial contribution and significant earnings dilution expected.2026 guidance is disappointing, projecting flat sales around $2.40 billion and adjusted EPS of $6.00, down more than $1 from 2025.While trading at 16x forward earnings, mixed signals from declining sales, margin normalization, and costly M&A keep me cautious on Itron.Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More » Yaraslau Saulevich/iStock via Getty Images Back in November I concluded that Itron, Inc. (ITRI) became acquisitive amidst a mixed operating performance. In theory, Itron enjoys a sound business position, yet it saw muted sales growth and soft bookings, which prevented me from seeing appeal despite very modestThis article was written byThe Value Investor27.63K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.