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Ituran Location and Control Ltd. Announces Cash Dividend Distribution

Ituran Location and Control Ltd. (NASDAQ: ITRN) has made a significant announcement regarding shareholder returns. On May 26, 2026, the company's Board of Directors approved a cash dividend totaling $10 million for the first quarter of 2026, confirming its commitment to maximizing shareholder value. This decision reflects Ituran's robust financial health and strategic planning within its market sector.

The dividend declared by the board is fixed at $0.50 per share and is set to be paid out to all shareholders on record as of June 24, 2026. The actual payment will take place on July 8, 2026. What makes this dividend particularly attractive is the favorable tax withholding rate, which is set at 20%. This reduced rate arises from the nature of the dividend distribution being classified under "Preferred Income" per the Encouragement of Capital Investment Law and the tax ruling obtained from the Israel Tax Authority (ITA).

To determine the distribution criteria's viability under Israeli law, the Board conducted a thorough examination of the company’s financial standing. The conclusion was that distributing this dividend would not impede Ituran's capacity to continue its business operations or future growth plans. As of March 31, 2026, the company's retained earnings amounted to $231.3 million. Post-distribution, these earnings will adjust to $221.3 million, still showcasing a robust financial positioning.

The Board highlighted a significant cash reserve of $108.0 million on hand prior to the dividend payment, which remains unaffected by prior commitments or distributions, including the $30 million dividend already declared for the fourth quarter of 2025.

Ituran possesses a solid financial backbone, evidenced by no outstanding credits from banking institutions and adequate current assets that stand at $141.0 million, compared to current liabilities of $131.3 million.

About Ituran

Established in 1995, Ituran Location and Control Ltd. has become a pioneering leader in the mobility technology sector. The company specializes in offering value-added location-based services, which encompass a spectrum of solutions tailored for connected vehicles. These include Stolen Vehicle Recovery, fleet management, and personalized security services tailored for retail, insurance, and automotive industries.

Ituran's extensive reach extends across over 20 nations, further establishing them as the largest Original Equipment Manufacturer (OEM) telematics provider within Latin America. The company's innovative product range has helped Ituran grow its subscriber base significantly, boasting over 2.6 million users of its advanced location-based services. Their commitment to innovation is evidenced by the establishment of the DRIVE startup incubator in Tel-Aviv, which aims to foster the development of smart mobility technologies.

The company employs around 2,900 professionals across offices in Israel, Brazil, Argentina, Mexico, Ecuador, Colombia, India, Canada, and the United States, with plans for continued growth and market expansion.

For more detailed information, visit
Ituran's official website.