ITURAN PRESENTS FIRST QUARTER 2025 RESULTS

Rhea-AI Summary

Ituran Location and Control (NASDAQ: ITRN) reported strong Q1 2025 results, marking significant growth across key metrics. The company surpassed 2.5 million subscribers, adding a record 99,000 net subscribers in the quarter. Revenue reached $86.5 million, up 2% year-over-year, while net income increased 12% to $14.6 million. The subscriber growth was notably boosted by a new telematics service agreement with Stellantis, the largest car manufacturer in Latin America. Based on this performance, Ituran raised its 2025 net subscriber-add forecast to 220,000-240,000. The company's Board declared a quarterly dividend of $10 million ($0.50 per share). Despite currency headwinds, the company achieved 7% revenue growth in local currencies, with subscription fees comprising 72% of total revenue.

Positive

• Record 99,000 net subscriber additions in Q1, surpassing 2.5 million total subscribers
• Net income increased 12% YoY to $14.6 million
• Operating income grew 10% YoY to $18.7 million
• New strategic partnership with Stellantis, Latin America's largest car manufacturer
• Improved gross margins: subscription revenues at 58.3% and product revenues at 23.6%
• Strong balance sheet with $75.7 million in net cash and no debt
• Raised 2025 subscriber growth forecast to 220,000-240,000 net new subscribers

Negative

• Currency headwinds impacted USD-reported growth (7% local currency growth translated to only 2% in USD)
• Product revenues showed minimal growth of 1% YoY
• Slight decrease in net cash position from $77.2 million at 2024 year-end to $75.7 million

Insights

Financial Analyst

Ituran's Q1 shows impressive subscriber growth, rising profitability, and expanded guidance driven by the strategic Stellantis partnership.

Ituran has delivered an exceptional first quarter that sets a positive trajectory for 2025, with record subscriber growth of 99,000 net additions bringing their total subscriber base past the 2.5 million milestone. The company achieved this while delivering solid financial performance: $86.5 million in revenue (+2% YoY), operating income of $18.7 million (+10% YoY), and net income of $14.6 million (+12% YoY).

Looking beyond the headline numbers reveals even stronger performance when accounting for currency effects. In local currency terms, revenue grew 7%, while operating income and net income increased by 17% and 20% respectively. This demonstrates the company's operational strength despite currency headwinds.

The standout driver this quarter is Ituran's new telematics service agreement with Stellantis, Latin America's largest car manufacturer whose brands include Fiat, Jeep, and Peugeot. This partnership contributed significantly to subscriber growth, as Stellantis transferred its existing stolen vehicle recovery subscriber base to Ituran's platform in March. This strategic win prompted management to raise their 2025 net subscriber addition forecast to 220,000-240,000.

Profitability metrics show excellent operational leverage. Gross margins improved to 48.6% from 46.5% last year, with subscription revenue margins edging up to 58.3% and product margins jumping significantly to 23.6% from 17.1%. Operating margin expanded to 21.6% from 20.0%, demonstrating the scalability of Ituran's business model.

The company's balance sheet remains rock-solid with $75.7 million in net cash and zero debt, supporting the declared dividend of $10 million ($0.50 per share). With strong cash flow from operations at $15.5 million for the quarter, Ituran continues to generate significant shareholder value while maintaining financial flexibility for future growth initiatives.

Surpasses 2.5 million subscriber milestone with 99,000 net adds in the quarter; raises 2025 net subscriber-add forecast to 220,000–240,000;

AZOUR, Israel, May 28, 2025 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the first quarter 2025.

Highlights of the First Quarter of 2025

• Added a record 99,000 net subscribers in the quarter.
• Revenue of $86.5 million, a 2% increase year-over-year.
• Operating income of $18.7 million, a 10% increase year-over-year.
• Net income increased to $14.6 million, a 12% increase year-over-year.
• EBITDA grew to $23.3 million, a 4% increase year-over-year.
• The Board declared a quarterly dividend of $10 million, or $0.50 per share.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are very pleased with our strong start to 2025, marked by continued revenue and profit growth. Significantly, Ituran reached a major milestone in the quarter, crossing 2.5 million subscribers, ahead of plan. During the quarter, the higher than typical subscriber growth was due to an additional contribution from a new telematics service agreement signed with Stellantis. Stellantis is the largest car manufacturer in Latin America, which includes car brands Fiat, Jeep, Peugeot and many others. As an initial part of our agreement, in March, Stellantis switched its SVR subscriber base to Ituran and Ituran began providing services to their subscribers.  As such, we increase our expectations for 2025 subscriber growth to between 220,000 and 240,000 net new subscribers."

Mr. Sheratzky continued, "We continue to work on developing attractive new and advanced telematics products and services adding value to our large and growing customer base through cutting-edge technologies. We see good performance from our stolen vehicle recovery business as well as solid traction for our new products – especially telematic services for motorcycle and financing products in Latin America. All this has been contributing to our accelerating subscriber growth. Overall, 2025 is shaping up to be another year of solid growth and profitability for Ituran."

First Quarter 2025 Results

Revenues for the quarter were $86.5 million, a 2% increase compared with $85.0 million in the first quarter of 2024.

72% of revenues were from location-based service subscription fees, and 28% were from product revenues.

It is noted that the first quarter strength of the US dollar versus 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 7% year-over-year.

Revenues from subscription fees for the quarter were $62.2 million, an increase of 2% over the first quarter of 2024. In local currencies, subscription revenue grew by 9% year-over-year.

The subscriber base surpassed Ituran's 2.5 million milestone during the quarter, and expanded to 2,508,000 by the end of March 2025, marking a quarterly increase of 99,000.

The significant growth in the subscriber base during the quarter was partially due to the contribution from a new telematics service agreement signed with Stellantis. As an initial part of this agreement, in March, Stellantis switched their SVR subscriber base to Ituran and Ituran began providing services to these subscribers.

Product revenues for the quarter were $24.3 million, an increase of 1% year-over-year. In local currencies, product revenue grew by 3% year-over-year.

Gross profit for the quarter was $42.0 million (48.6% of revenues), a 6% increase compared with $39.5 million (46.5% of revenues) in the first quarter of 2024. In local currencies, gross profit grew by 10% year-over-year.

Gross margin on subscription revenues improved to 58.3%, compared to 58.1% in Q1 2024. The gross margin on product revenues improved to 23.6%, compared to 17.1% last year. The variance in the product gross margin between quarters was due to the change in the product mix sold.

Operating income for the quarter was $18.7 million (21.6% of revenues), representing a 10% increase compared to $17.0 million (20.0% of revenues) in Q1 2024. In local currencies, operating income grew by 17% year-over-year.

EBITDA for the quarter was $23.3 million (26.9% of revenues), up 4% from $22.3 million (26.3% of revenues) in the first quarter of last year. In local currencies, EBITDA grew by 12% year-over-year.

Net income for the quarter was $14.6 million (16.9% of revenues), or diluted earnings per share of $0.73, an increase of 12% compared to $13.0 million (15.3% of revenues), or $0.66 per diluted share, in the first quarter of 2024. In local currencies, net income grew by 20% year-over-year.

Cash flow from operations for the quarter was $15.5 million.

On the balance sheet, as of March 31, 2025, the Company had net cash, including marketable securities, of $75.7 million, which includes no debt. This is compared with net cash, including marketable securities, of $77.2 million, as of year-end 2024.

Dividend

The Board of Directors declared a dividend of $10 million for the quarter. The current dividend takes into account the Company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet.

Conference Call Information

The Company will also be hosting a video conference call via the Zoom platform later today, Wednesday, May 28, 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.  https://us06web.zoom.us/webinar/register/WN_c2_wCWJ5TfG4UKKXT4Y9vw

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.

About Ituran

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

 

Company Contact Udi Mizrahi udi_m@ituran.com  Deputy CEO & VP Finance, Ituran (Israel) +972 3 557 1348

International Investor Relations Ehud Helft ituran@ekgir.com  EK Global  Investor Relations (US) +1 212 378 8040

 

 

ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
			US dollars
			March 31,		December 31,
(In thousands)			2025		2024
			(unaudited)
Current assets
Cash and cash equivalents			75,683		77,357
Investments in marketable securities			2		10
Accounts receivable (net of provision for credit loss)			54,217		47,688
Other current assets			48,182		46,067
Inventories			23,281		23,434
			201,365		194,556
Long-term investments and other assets
Investments in affiliated companies			479		519
Investments in other companies			1,530		1,491
Other non-current assets			5,891		5,853
Deferred income taxes			12,585		12,273
Funds in respect of employee rights upon retirement			21,690		21,823
			42,175		41,959
Property and equipment, net			35,951		33,080
Operating lease right-of-use assets, net			9,115		8,947
Intangible assets, net			8,686		9,011
Goodwill			39,257		39,325
Total assets			336,549		326,878
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)
			US dollars
			March 31,		December 31,
(In thousands)			2025		2024
			(unaudited)
Current liabilities
Credit from banking institutions			-		114
Accounts payable			20,040		18,847
Deferred revenues			24,338		22,857
Other current liabilities			48,962		45,904
			93,340		87,722
Long-term liabilities
Liability for employee rights upon retirement			28,070		27,593
Deferred income taxes			439		418
Deferred revenues			11,701		12,231
Operating lease liabilities, non-current			5,358		5,562
Other non-current liabilities			2,125		2,095
			47,693		47,899
Stockholders' equity			190,674		185,227
Non-controlling interests			4,842		6,030
Total equity			195,516		191,257
Total Liabilities and equity			336,549		326,878

 

 

ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		US dollars
		Three months period ended March 31,
(in thousands, except per share data)		2025		2024
Revenues: Telematics services		(unaudited)
		62,180		60,935
Telematics products		24,275		24,091
		86,455		85,026
Cost of revenues: Telematics services		25,899		25,521
Telematics products		18,537		19,962
		44,436		45,483
Gross profit		42,019		39,543
Research and development expenses		4,862		4,523
Selling and marketing expenses		4,259		3,574
General and administrative expenses		14,238		14,456
Other expenses (income), net		6		(39)
Operating income		18,654		17,029
Financing income, net		546		75
Income before income tax		19,200		17,104
Income tax expenses		(4,066)		(3,430)
Share in losses of affiliated companies, net		(34)		(81)
Net income for the period		15,100		13,593
Less: Net income attributable to non-controlling interest		(508)		(557)
Net income attributable to the company		14,592		13,036
Basic and diluted earnings per share attributable to Company's stockholders		0.73		0.66
Basic and diluted weighted average number of shares outstanding (in thousands)		19,894		19,894

 

 

ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
						US dollars
						Three months period ended March 31,
(in thousands)						2025		2024
						(unaudited)
Cash flows from operating activities
Net income for the period						15,100		13,593
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization						4,628		5,298
Loss (gain) in respect of trading marketable securities and other investments						8		(104)
Increase in liability for employee rights upon retirement						1,031		762
Share in losses of affiliated companies, net						34		81
Deferred income taxes						(85)		(790)
Capital loss on sale of property and equipment, net						31		36
Increase in accounts receivable						(6,564)		(4,840)
Increase in other current and non-current assets						(22)		(3,485)
Decrease (increase) in inventories						(130)		521
Increase (decrease) in accounts payable						269		(470)
Increase in deferred revenues						747		1,264
Increase (decrease) in other current and non-current liabilities						412		(464)
Net cash provided by operating activities						15,459		11,402
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals						(292)		(707)
Capital expenditures						(6,610)		(3,131)
Return from (investments in) affiliated and other companies, net						(4)		138
Repayment of (Investment in) long-term deposit						(84)		64
Proceeds from sale of property and equipment						300		156
Net cash used in investment activities						(6,690)		(3,480)
Cash flows from financing activities
Short term credit from banking institutions, net						(114)		(273)
Dividend paid						(7,758)		(4,774)
Dividend paid to non-controlling interests						(1,677)		(1,630)
Net cash used in financing activities						(9,549)		(6,677)
Effect of exchange rate changes on cash and cash equivalents						(894)		(644)
Net change in cash and cash equivalents						(1,674)		601
Balance of cash and cash equivalents at beginning of period						77,357		53,434
Balance of cash and cash equivalents at end of period						75,683		54,035

 

Supplementary information on investing and financing activities not involving cash flows:

In February 2025, the Company declared a dividend in an amount of US$ 10 million. The dividend was paid in April 2025.

 

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SOURCE Ituran Location and Control Ltd.

FAQ

What were Ituran's (ITRN) key financial results for Q1 2025?

Ituran reported Q1 2025 revenue of $86.5 million (+2% YoY), net income of $14.6 million (+12% YoY), and EBITDA of $23.3 million (+4% YoY). The company added 99,000 net subscribers and declared a $0.50 per share dividend.

How many subscribers did Ituran (ITRN) add in Q1 2025?

Ituran added a record 99,000 net subscribers in Q1 2025, surpassing the 2.5 million subscriber milestone to reach 2,508,000 total subscribers by the end of March 2025.

What is Ituran's (ITRN) new subscriber growth forecast for 2025?

Ituran raised its 2025 subscriber growth forecast to between 220,000 and 240,000 net new subscribers, driven by the new Stellantis partnership and strong performance in core business segments.

What is the significance of Ituran's partnership with Stellantis?

The partnership with Stellantis, Latin America's largest car manufacturer, involves Ituran providing telematics services to Stellantis's SVR subscriber base, contributing significantly to Ituran's Q1 2025 subscriber growth.

What dividend did Ituran (ITRN) declare for Q1 2025?

Ituran's Board declared a quarterly dividend of $10 million, equivalent to $0.50 per share, reflecting the company's strong profitability and positive cash flow.