Itron's Q4: Navigating Regulatory Hurdles Towards a Brighter Future
Investment Advisor's Insights: Aristotle Capital Boston's Q4 2025 Letter
Aristotle Capital Boston, LLC, a prominent investment advisor, recently shared its fourth-quarter 2025 investor letter for the "Small Cap Equity Fund." This letter, accessible to interested parties, sheds light on the performance of U.S. small-cap equities during that period. The quarter began with a continuation of the post-Liberation Day market rally and concluded robustly, fueled by a favorable macroeconomic environment. Key factors supporting small-cap growth included attractive valuations, a recovery in earnings, market broadening, and a shift away from mega-cap stocks. The Aristotle Small Cap Equity Fund (Class I-2) posted a 1.96% return in Q4 2025, slightly underperforming the Russell 2000 Index's 2.19% total return. While security selection contributed positively, allocation effects detracted from the overall performance. The letter further encourages a review of the Strategy's top five holdings to understand their key selections for 2025.
Itron's Q4 2025 Performance: A Detailed Analysis
In its Q4 2025 investor letter, Aristotle Small Cap Equity Fund specifically identified Itron, Inc. (NASDAQ: ITRI) as a significant factor negatively impacting its performance. Itron, Inc. (NASDAQ: ITRI) is a technology and service company specializing in the management of water and energy resources. As of February 13, 2026, Itron, Inc. (NASDAQ: ITRI) shares closed at $89.36. The stock experienced a -10.68% return over the past month and a -7.88% decline over the last twelve months. Itron, Inc. (NASDAQ: ITRI) currently holds a market capitalization of $4.093 billion.
Regulatory Delays and Market Reaction
Aristotle Small Cap Equity Fund's letter highlighted that Itron, Inc. (NASDAQ: ITRI), a global producer and supplier of electric, water, and gas meters, along with advanced metering systems, saw its shares decline after its third-quarter earnings report. This downturn was primarily attributed to slower-than-expected regulatory approvals. However, the investment firm believes these challenges are temporary and anticipates an acceleration in 2026. They are maintaining their investment, confident that the company is well-positioned to benefit from ongoing power grid modernization efforts, which are expected to continuously fuel demand for Itron's smart metering and grid monitoring solutions.
Itron's Position in the Market and Future Outlook
Itron, Inc. (NASDAQ: ITRI) is not currently featured on the list of the 30 Most Popular Stocks Among Hedge Funds. Despite this, our data indicates that 37 hedge fund portfolios held Itron, Inc. (NASDAQ: ITRI) at the close of the third quarter, an increase from 35 in the preceding quarter. While acknowledging Itron's investment potential, the analysis suggests that certain AI stocks may offer greater upside potential with reduced downside risk. For those seeking an exceptionally undervalued AI stock poised to benefit significantly from Trump-era tariffs and the trend of onshoring, a free report on the best short-term AI stock is available for review.