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    Tucson Smart Water Contract Might Change The Case For Investing In Itron (ITRI)

    Simply Wall St·12/09/2025 20:18:22
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    • Itron, Inc. announced that it is working with the City of Tucson | Tucson Water to deploy its AMI Essentials for water bundle, rolling out 250,000 smart water communication modules, cellular Network-as-a-Service, and the Temetra meter data platform to support Tucson’s long-term One Water 2100 conservation plan through 2029.
    • This contract highlights how Itron’s pre-integrated, cloud-based infrastructure can serve small- and mid-sized U.S. water utilities seeking granular consumption data, automated operations, and reduced non-revenue water loss.
    • We’ll now examine how this Tucson AMI rollout, particularly the 250,000 smart endpoints and cloud management, feeds into Itron’s broader investment narrative.

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    Itron Investment Narrative Recap

    To own Itron, you need to believe utilities will keep modernizing aging electric, gas, and water systems and increasingly pay for connected devices, networks, and software like Outcomes. The Tucson AMI project reinforces Itron’s role in water conservation and recurring cloud services, but given its size and multi‑year rollout, it is unlikely to materially change near term revenue timing, where deployment delays on larger, regulator‑dependent projects remain the key catalyst and risk.

    The Tucson announcement ties most directly into Itron’s broader push toward software and data services, echoing recent commentary about Outcomes as a core growth pillar. While the segment’s slower sub‑10% growth last quarter raised questions about the pace of that shift, multi‑year AMI deals that bundle cellular NaaS and Temetra, like Tucson’s One Water 2100 rollout, illustrate how new projects can contribute to a higher mix of recurring, cloud‑based revenue over time.

    Yet while Tucson’s smart water rollout underpins the software story, investors should also be aware that...

    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 45% upside to its current price.

    Exploring Other Perspectives

    ITRI 1-Year Stock Price Chart
    ITRI 1-Year Stock Price Chart

    Five Simply Wall St Community valuations for Itron span roughly US$101 to US$188 per share, underscoring how far apart individual investors can be. Against that wide range, the risk that large, regulator dependent projects are delayed or deferred could be an important factor to weigh when you compare these different views on Itron’s prospects.

    Explore 5 other fair value estimates on Itron - why the stock might be worth just $101.21!

    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.