Ituran Location and Control Ltd. Declares $10 Million Dividend for Q1 2025

Ituran Location and Control Ltd. Declares a $10 Million Dividend for Q1 2025

Ituran Location and Control Ltd. (NASDAQ: ITRN) recently made headlines with its announcement of a significant cash dividend distribution following their Board of Directors meeting. This comes at a time when the company continues to show robust financial health, confirming its commitment to shareholder returns.

On May 28, 2025, Ituran disclosed that the Board has authorized a dividend of $0.50 per share, which translates to an impressive total of approximately $10 million. This payout is slated for shareholders who are on record as of June 18, 2025, with disbursement scheduled for July 2, 2025. The dividend will be distributed net of a 25% tax, a decision made after thorough consideration of the company's financial standing and future capabilities.

Financial Stability

The decision to declare this dividend was not taken lightly. The Board evaluated the company's financial standing in accordance with Israeli law, which stipulates that distributions must be sustainable. They concluded that this distribution will not hinder Ituran's operations or future plans, ensuring they can meet their obligations timely.

As of March 31, 2025, the company held retained earnings of $230.7 million before the dividend payout. Post-distribution, these earnings will drop to $220.7 million, reflecting a measured approach to balancing shareholder rewards and maintaining operational liquidity. Additionally, as of the same date, Ituran reported a cash balance of $75.7 million, which precedes the previous dividend payment made in April 2025. The company has also remained debt-free, with no banking credits affecting their financial profile.

Company Overview and Services

Founded in 1995, Ituran Location and Control Ltd. is a leader in the field of mobility technology, offering a wide range of location-based services. The company is well-known for its innovative solutions including Stolen Vehicle Recovery, fleet management, and security solutions for personal and business assets. With a growing subscriber base of over 2.5 million across 20 countries, Ituran has established a market-leading position in both Israel and Latin America, further reinforcing its stature as the largest OEM telematics provider in the region.

Ituran employs around 2,800 individuals globally, with operations in various countries such as Brazil, Argentina, Mexico, Ecuador, Colombia, India, Canada, and the United States. Their commitment to innovation led them to establish DRIVE, a Tel-Aviv based startup incubator that focuses on advancing smart mobility solutions and technologies.

Future Growth

Ituran’s sustained dividend payout underscores a focus on long-term growth while rewarding shareholders. The company is positioned favorably for future expansion, especially with the increasing demand for telematics and connected car solutions in today's technology-driven environment. Industry analysts and investors alike view this move as a strong signal of Ituran's confidence in its ongoing projects and market strategies.

This forthcoming dividend not only highlights Ituran's ongoing commitment to its shareholders but also reinforces the company's stability and growth potential in the rapidly evolving mobility tech landscape. Visit Ituran's website for more insights into their services and future announcements.