Itron, Inc. (ITRI) experienced a notable drop in its share value during the fourth quarter of 2025, a performance largely influenced by booking figures that did not meet projections. This downturn was specifically pointed out in the investor letter from Carillon Eagle Small Cap Growth Fund, where Itron was identified as a key factor negatively impacting the fund's overall returns. The company, which specializes in technological solutions for managing water and energy resources, closed its stock at $89.36 per share. This represented a negative return of 10.68% over one month and a 7.88% decrease over the preceding twelve months. Despite these challenges, the broader small-cap market demonstrated resilience in 2025, with both growth and value indices showing positive returns, albeit with varying degrees of success.
Carillon Tower Advisers, through its Carillon Eagle Small Cap Growth Fund, issued an investor letter for the final quarter of 2025, shedding light on the market's dynamics. The letter indicated that small-cap equities registered modest gains in Q4 2025. Notably, the Russell 2000® Value Index slightly outperformed its Growth counterpart during this period, with the year 2025 as a whole yielding strong results for small-cap stocks. The Russell 2000 Growth Index achieved a 13.01% return, surpassing the Russell 2000 Value Index's 12.58% gain. Looking ahead to 2026, the firm expressed optimism for equity markets, anticipating opportunities across various sectors such as Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending. The fund's top five holdings were also reviewed to offer insights into their strategic selections for 2025.
The investor letter from Carillon Eagle Small Cap Growth Fund explicitly mentioned Itron, Inc. as a significant contributor to the fund's underperformance in the fourth quarter of 2025. Itron, a provider of connected metering products and software solutions for the utility industry, saw its shares pressured after reporting results that met expectations but revealed weaker-than-anticipated bookings. Management attributed this slowdown to a temporary shift in the priorities of utility customers. This shift was reportedly due to planning uncertainties arising from data center load growth and heightened regulatory scrutiny concerning potential increases in consumer utility bills. As of February 13, 2026, Itron's stock stood at $89.36 per share, with a market capitalization of approximately $4.093 billion.
The investment landscape for Itron, Inc. is complex, and while it holds a position in numerous hedge fund portfolios, it is not among the most frequently held stocks. According to data from the end of the third quarter, 37 hedge funds included Itron in their holdings, an increase from 35 in the prior quarter. However, some market analysts suggest that certain artificial intelligence (AI) stocks may offer better upside potential and reduced downside risk compared to Itron. This perspective often considers factors such as the potential benefits from trade policies and domestic manufacturing trends, positioning some AI stocks as potentially more attractive short-term investments.
In summary, Itron, Inc. faced challenges in the fourth quarter of 2025, primarily due to lower-than-expected bookings. This led to a decline in its stock performance, as highlighted by the Carillon Eagle Small Cap Growth Fund. The company's situation reflects broader shifts in utility customer priorities, influenced by factors like data center expansion and regulatory concerns over consumer costs. Despite the overall positive performance of small-cap stocks in 2025, Itron's individual trajectory indicates specific headwinds within its sector, prompting a cautious outlook from some investment perspectives, particularly when compared to emerging opportunities in the AI sector.