What Itron (ITRI)'s Tucson Smart Water Deal Means For Its Utility Digitization Strategy

• Itron, Inc. recently announced it is working with the City of Tucson’s Tucson Water to deploy its AMI Essentials for water solution, including 250,000 smart water communication modules, cellular Network-as-a-Service and the Temetra meter data management platform, in a multi‑year project running through 2029 to support the city’s long-term conservation plans.
• This collaboration underscores how Itron’s bundled, cloud-based offering can modernize medium-sized utilities by turning existing meters into smart endpoints, enhancing leak detection, operational efficiency and customer visibility into water usage.
• We’ll now examine how this Tucson Water AMI rollout, especially its 250,000 smart modules and cloud services, influences Itron’s investment narrative.

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Itron Investment Narrative Recap

Itron’s story really hinges on whether you believe utilities will keep investing in grid and water modernization, especially higher‑margin, software‑enabled solutions. The Tucson Water AMI project supports that thesis, but given its multi‑year rollout, it does not materially change the near‑term picture where the key catalyst remains execution on Outcomes growth and the biggest risk is ongoing customer and regulatory delays pushing projects to the right.

The Tucson deployment also connects cleanly to Itron’s broader push into bundled, cloud‑based offerings, which has been visible in deals like Northumbrian Water’s smart metering program in the UK. Together, these wins highlight how utilities are adopting Itron’s software and services stack, which ties directly into the company’s aim of growing recurring Outcomes revenue and reducing dependence on slower moving, large hardware projects.

Yet while these projects support the long term story, investors should also be aware that prolonged regulatory and customer delays could...

Read the full narrative on Itron (it's free!)

Itron's narrative projects $2.8 billion revenue and $388.8 million earnings by 2028.

Uncover how Itron's forecasts yield a $140.20 fair value, a 46% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently see Itron’s fair value between US$101 and about US$187, illustrating how far opinions can spread. Against this backdrop, the risk of larger project delays and regulatory holdups remains front of mind for many, with clear implications for how quickly Itron can convert its AMI wins into reported revenue and earnings.

Explore 5 other fair value estimates on Itron - why the stock might be worth as much as 95% more than the current price!

Build Your Own Itron Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Itron research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Itron research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Itron's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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