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Ituran Location and Control Reports Second Quarter 2025 Results

Ituran Location and Control Ltd. (NASDAQ: ITRN) has released its consolidated financial results for the second quarter of 2025, ending June 30. This quarter has been marked by strong financial performance, with an evident growth trajectory despite adverse conditions in the market.

Key Highlights

• - Net Subscribers: Ituran successfully added 40,000 new subscribers in this quarter alone, bringing the total subscriber count to 2,548,000. This achievement reflects a robust growth of 219,000 subscribers year-over-year.
• - Revenue: The company reported a total revenue of $86.8 million, representing a 2% increase from $84.9 million recorded in the same quarter of the previous year.
• - Net Income: Net income rose to $13.5 million, marking a 2% increase compared to $13.1 million in Q2 2024.
• - EBITDA: The EBITDA for this quarter was recorded at $22.9 million, which is a slight decrease of 1% year-over-year.
• - Quarterly Dividend: A quarterly dividend of $10.0 million was declared, translating to $0.50 per share, showcasing Ituran's commitment to returning value to its shareholders.

Management Insights

Eyal Sheratzky, Co-CEO of Ituran, expressed satisfaction with the company’s performance, acknowledging that the business continued to execute its strategic objectives through growth in both subscriber numbers and financial metrics. Notably, this success occurred during a brief but intense military conflict with Iran, which temporarily halted new car sales in Israel, thereby impacting product sales.

Despite these challenges, Ituran's strategic expansions are evidenced in its customer engagement through the launch of new telematics products and services. One noteworthy initiative is aimed at motorcycle owners, which has reportedly gained significant traction in the market. Sheratzky remarked that 2025 is poised to be another prosperous year, projecting an additional growth of 220,000 to 240,000 new subscribers over the year.

Financial Overview

The revenue breakdown highlights that 73% of total revenues were derived from location-based service subscription fees, with the remaining 27% from product revenues. Subscription revenues grew by 6% to $63.8 million, while product revenues experienced a decline of 6% to $23 million, largely due to the aforementioned market disruption.

The gross profit stood at $42.9 million, translating to a gross margin of 49.5%, an increase from 46.9% year-over-year. Operating income also rose to $18.3 million, yielding an operating margin of 21.1%.

Financial changes reflected in the balance sheet include an increase in net cash, totaling $88.7 million as of June 30, 2025, which indicates no debt, in contrast to $77.3 million at the end of 2024. This positive liquidity is testament to Ituran’s strong operational cash flow of $22.4 million for the quarter.

Further reflecting on its shareholder commitments, the board of directors declared a $10 million dividend, highlighting ongoing profitability and a positive cash flow.

Concluding Remarks

As Ituran celebrates three decades since its inception and two decades of being publicly traded on the Nasdaq, the company reiterates its commitment to delivering sustainable growth and profitability. The management remains optimistic about the company’s trajectory moving forward, emphasizing long-term value creation for investors.

To discuss the results further, management will host a video conference call via Zoom, ensuring investors have the opportunity to interact and ask questions directly.

For more details about Ituran's reports and initiatives, visit their official website at Ituran.