ITURAN PRESENTS SECOND QUARTER 2025 RESULTS

Record revenue of $86.8 million and added 40,000 net new subscribers in the quarter;

AZOUR, Israel – August 19, 2025. Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter, ended June 30, 2025.

Highlights of the Second Quarter of 2025

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, “I am pleased to report another solid quarter for Ituran, as we continue to execute on our strategic objectives and deliver steady growth in both our subscriber base and financial performance. We achieved this despite a brief and intensive war with Iran during the quarter, which caused a temporary cessation of new car sales in Israel which lead to somewhat lower product sales for Ituran. Looking at the broader picture, our results demonstrate ongoing expansion in our large subscriber base across our target geographies. We continue to launch attractive new and advanced telematics products and services adding value to our customer base, including a new product targeted to motorcycle owners which is seeing solid traction. Together with the new OEM we have recently started working with, 2025 is shaping up to be another year of growth and profitability for Ituran. We reiterate our expectations to grow our subscriber base by 220-240,000 net in 2025".

Eyal Sheratzky, Co-CEO of Ituran continued, “In the second quarter, I am happy to announce that at Ituran we celebrated three decades since inception, twenty of those years as a public company on Nasdaq. We look forward to continuing our journey delivering long-term profitable growth, cash generation, and overall solid returns for Ituran’s shareholders for the decades ahead.”

Second Quarter 2025 Results

 

Revenues for the quarter were $86.8 million, a 2% increase compared with $84.9 million in Q2 2024.

It is noted that the second quarter strength of the US dollar versus some of the various local currencies in which the Company operates compared to the year-ago US dollar level, impacted the revenue growth when translated into US dollars. In local currencies, revenues grew by 4% year-over-year.

73% of revenues were from location-based service subscription fees, and 27% were from product revenues.

Revenues from subscription fees for the quarter were $63.8 million, an increase of 6% over the second quarter of 2024. In local currencies, subscription revenue grew by 7% year-over-year.

The subscriber grew to 2,548,000 by the end of June 2025, marking a quarterly increase of 40,000 and a year-over-year increase of 219,000.

Product revenues for the quarter were $23.0 million, a decrease of 6% year-over-year. Product sales were impacted due to a cessation of new sales during the 12-day war between Israel and Iran during the second quarter.

Gross profit for the quarter was $42.9 million (49.5% of revenues), an 8% increase compared with $39.8 million (46.9% of revenues) in the second quarter of 2024.

Gross margin on subscription revenues was 57.9%, compared to 58.2% in the second quarter of last year. The gross margin on product revenues was 26.0%, compared to 18.9% last year. The variance in the gross margin between quarters reflects changes in the mix of products and services sold in the quarter.

Operating income for the quarter was $18.3 million (21.1% of revenues), representing a 3% increase compared to $17.7 million (20.9% of revenues) in the second quarter of 2024. In local currencies, operating income grew by 6% year-over-year.

EBITDA for the quarter was $22.9 million (26.4% of revenues), a decrease of 1% compared with $23.1 million (27.2% of revenues) in the second quarter of last year. In local currencies, EBITDA grew by 2% year-over-year.

Finance expenses were $1.3 million compared with finance income of $0.1 million in the second quarter of last year. The expense this quarter was due to the strongly increased level of the Israeli Shekel compared to the US Dollar at the end of the quarter, which led to a lowering in value of US Dollar linked deposits in Israel, which caused a non-cash finance expense on those deposits.

Net income for the quarter of 2025 was $13.5 million (15.5% of revenues), or diluted earnings per share of $0.68, an increase of 2% compared to $13.1 million (15.5% of revenues), or $0.66 per diluted share, in the second quarter of 2024. In local currencies, net income grew by 6% year-over-year.

Cash flow from operations for the quarter was $22.4 million.

On the balance sheet, as of June 30, 2025, the Company had net cash, including marketable securities, of $88.7 million, which includes no debt. This is compared with net cash, including marketable securities, of $77.3 million, as of year-end 2024.

Dividend

The Board of Directors declared a dividend of $10.0 million for the quarter. The current dividend takes into account the Company’s continuing strong profitability, ongoing positive cash flow, and strong balance sheet.

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The Company will also be hosting a video conference call via the Zoom platform later today, Tuesday, August 19, 2025 at 9am Eastern Time and 4pm Israel time.

On the call, management will review and discuss the results and will be available to answer investor questions.

To participate in the Zoom call, please register at the following link.

For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Ituran’s website.

Certain statements in this press release are "forward-looking statements" within the meaning of the Securities Act of 1933, as amended.  These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors, as well as factors related to the global COVID-19 pandemic.

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Ituran is a leader in the emerging mobility technology field, providing value-added location-based services, including a full suite of services for the connected-car. Ituran offers Stolen Vehicle Recovery, fleet management as well as mobile asset location, management & control services for vehicles, cargo and personal security for the retail, insurance, financing industries and car manufacturers. Ituran is the largest OEM telematics provider in Latin America. Its products and applications are used by customers in over 20 countries. Ituran is also the founder of the Tel-Aviv based DRIVE startup incubator to promote the development of smart mobility technology.

Ituran's subscriber base has been growing significantly since the Company's inception to over 2.5 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 employees worldwide, with offices in Israel, Brazil, Argentina, Mexico, Ecuador, Columbia, India, Canada and the United States.

For more information, please visit Ituran’s website, at: www.ituran.com

	Page
Condensed Consolidated Interim Financial Statements:
Condensed Consolidated Balance Sheets	2 - 3
Condensed Consolidated Statements of Income	4
Condensed Consolidated Statements of Cash Flows	5

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

		US dollars
		June 30,				December 31,
(In thousands)		2025				2024
		(unaudited)
Current assets
Cash and cash equivalents			88,735				77,357
Investments in marketable securities			2				10
Accounts receivable (net of provision for credit loss)			59,899				47,688
Other current assets			48,279				46,067
Inventories			24,697				23,434
			221,612				194,556
Long-term investments and other assets
Investments in affiliated companies			549				519
Investments in other companies			1,799				1,491
Other non-current assets			5,961				5,853
Deferred income taxes			13,952				12,273
Funds in respect of employee rights upon retirement			24,510				21,823
			46,771				41,959
Property and equipment, net			38,558				33,080
Operating lease right-of-use assets, net			8,814				8,947
Intangible assets, net			9,086				9,011
Goodwill			39,613				39,325
Total assets			364,454				326,878

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)

		US dollars
		June 30,				December 31,
(In thousands)		2025				2024
		(unaudited)
Current liabilities
Credit from banking institutions			-				114
Accounts payable			20,621				18,847
Deferred revenues			24,534				22,857
Other current liabilities			53,183				45,904
			98,338				87,722
Long-term liabilities
Liability for employee rights upon retirement			31,617				27,593
Deferred income taxes			566				418
Deferred revenues			14,752				12,231
Operating lease liabilities, non-current			5,175				5,562
Other non-current liabilities			2,330				2,095
			54,440				47,899
Stockholders' equity			206,043				185,227
Non-controlling interests			5,633				6,030
Total equity			211,676				191,257
Total liabilities and equity			364,454				326,878

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

		US dollars
		Six months period ended June 30,								Three months period ended June 30,
(in thousands, except per share data)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Revenues:
Telematics services			125,936				121,352				63,756				60,417
Telematics products			47,312				48,543				23,037				24,452
			173,248				169,895				86,793				84,869
Cost of revenues:
Telematics services			52,734				50,746				26,835				25,225
Telematics products			35,574				39,802				17,037				19,840
			88,308				90,548				43,872				45,065
Gross profit			84,940				79,347				42,921				39,804
Research and development expenses			9,920				9,117				5,058				4,594
Selling and marketing expenses			8,634				7,272				4,375				3,698
General and administrative expenses			29,369				28,307				15,131				13,851
Other expenses (income), net			27				(123	)			21				(84	)
Operating income			36,990				34,774				18,336				17,745
Financing income (expenses), net			(782	)			131				(1,328	)			56
Income before income tax			36,208				34,905				17,008				17,801
Income tax expenses			(7,329	)			(7,205	)			(3,263	)			(3,775	)
Share in profit (losses) of affiliated companies, net			(18	)			(122	)			16				(41	)
Net income for the period			28,861				27,578				13,761				13,985
Less: net income attributable to non-controlling interest			(816	)			(1,415	)			(308	)			(858	)
Net income attributable to the company			28,045				26,163				13,453				13,127
Basic and diluted earnings per share attributable to Company's stockholders			1.41				1.32				0.67				0.66
Basic and diluted weighted average number of shares outstanding (in thousands)			19,894				19,894				19,894				19,894

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		US dollars
		Six months period ended June 30,								Three months period ended June 30,
(in thousands)		2025				2024				2025				2024
		(unaudited)								(unaudited)
Cash flows from operating activities
Net income for the period			28,861				27,578				13,761				13,985
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization			9,230				10,651				4,602				5,353
Loss in respect of trading marketable securities and other investments			8				35				-				139
Increase in liability for employee rights upon retirement			1,622				1,680				591				918
Share in losses (profit) of affiliated companies, net			18				122				(16	)			41
Deferred income taxes			(387	)			(1,237	)			(302	)			(447	)
Capital loss (gain) on sale of property and equipment, net			89				(95	)			58				(131	)
Increase in accounts receivable			(7,691	)			(6,544	)			(1,127	)			(1,704	)
Decrease (increase) in other current and non-current assets			4,800				(4,371	)			4,822				(886	)
Decrease (increase) in inventories			(58	)			1,529				72				1,008
Increase (decrease) in accounts payable			(124	)			1,816				(393	)			2,286
Increase (decrease) in deferred revenues			1,354				372				607				(892	)
Increase (decrease) in other current and non-current liabilities			163				2,804				(249	)			3,268
Net cash provided by operating activities			37,885				34,340				22,426				22,938
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals			(852	)			(1,515	)			(560	)			(808	)
Capital expenditures			(11,874	)			(6,309	)			(5,264	)			(3,178	)
Return from (investments in) affiliated and other companies, net			(110	)			57				(106	)			(81	)
Repayment of (investment in) long-term deposit			(23	)			23				61				(41	)
Proceeds from sale of property and equipment			454				293				154				137
Net cash used in investment activities			(12,405	)			(7,451	)			(5,715	)			(3,971	)
Cash flows from financing activities
Short term credit from banking institutions, net			(114	)			(331	)			-				(58	)
Dividend paid			(17,705	)			(12,533	)			(9,947	)			(7,759	)
Dividend paid to non-controlling interests			(1,677	)			(1,630	)			-				-
Net cash used in financing activities			(19,496	)			(14,494	)			(9,947	)			(7,817	)
Effect of exchange rate changes on cash and cash equivalents			5,394				(2,619	)			6,288				(1,975	)
Net change in cash and cash equivalents			11,378				9,776				13,052				9,175
Balance of cash and cash equivalents at beginning of period			77,357				53,434				75,683				54,035
Balance of cash and cash equivalents at end of period			88,735				63,210				88,735				63,210

 

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