ITURAN PRESENTS SECOND QUARTER 2026 RESULTS

Rhea-AI Summary

Ituran Location and Control (NASDAQ: ITRN) reported record Q2 2026 revenue of $104.8 million, up 21% year-over-year. Subscription revenues reached $79.8 million, up 25% and representing 76% of total revenue, while product revenues were $25.0 million, up 8%.

Operating income was $23.8 million (22.7% margin), up 30%. EBITDA rose 24% to a record $28.5 million (27.2% margin). Net income attributable to the company was $17.3 million, up 29%, with diluted EPS of $0.88 versus $0.67 a year earlier.

Ituran added 41,000 net subscribers, bringing the base to 2.711 million. Q2 operating cash flow reached a record $32.2 million. The board declared a quarterly dividend of $10 million ($0.50 per share) and repurchased $3.0 million of shares, leaving about $10 million under authorization. As of June 30, 2026, the company reported net cash (including marketable securities) of $103.7 million with no debt.

Positive

• Q2 2026 revenue $104.8M, up 21% year-over-year
• Subscription revenue $79.8M, up 25% and 76% of total
• Operating income $23.8M, up 30% with 22.7% margin
• EBITDA $28.5M, up 24% and 27.2% of revenue
• Net income $17.3M, up 29%; EPS $0.88 vs. $0.67
• Operating cash flow $32.2M in Q2, a quarterly record
• Subscriber base 2.711M, net add of 41,000 in quarter
• Quarterly dividend $10M ($0.50 per share) declared
• Share buyback $3.0M in Q2; ~$10M authorization remaining
• Net cash $103.7M (including marketable securities) and no debt

Negative

• Cash and cash equivalents fell to $103.7M from $107.6M year-end 2025
• Product gross margin 25.7% vs. 26.0% a year earlier
• Finance expenses $1.3M in Q2, affected by stronger Israeli shekel
• Dividends paid $39.8M in first half 2026, exceeding H1 2026 net income

News Explained

The Q2 release states that its previously declared $10 million dividend was paid in July 2026, making the cash distribution completed by the August 12, 2026 results release rather than merely declared.

Market Context

Tag-specific earnings history averaged -0.61% across five events. Against that record, this quarter'...

Analysis

Tag-specific earnings history averaged -0.61% across five events. Against that record, this quarter's stronger growth and capital returns are the subject of comparison; currency effects and execution across regions remain items to watch.

Key Figures

Revenue: $104.8 million Subscription revenue: $79.8 million Net income: $17.3 million +5 more

8 metrics

Revenue $104.8 million Q2 2026; up 21% year-over-year

Subscription revenue $79.8 million Q2 2026; up 25% year-over-year

Net income $17.3 million Q2 2026; up 29% year-over-year

EBITDA $28.5 million Q2 2026; up 24% year-over-year

Operating cash flow $32.2 million Q2 2026

Net cash $103.7 million As of June 30, 2026; includes no debt

Quarterly dividend $0.50 per share Q2 2026; $10 million total

Share buyback $3.0 million Shares purchased during Q2 2026

Previous Earnings Reports

5 past events · Latest: May 26 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 26	Q1 earnings report	Positive	+2.1%	First-quarter revenue and subscription growth accompanied higher net income and EBITDA.
Mar 05	FY2025 earnings	Positive	+10.0%	Record annual results and a larger dividend preceded the strongest positive response.
Nov 18	Q3 earnings report	Positive	-0.6%	Record quarterly results coincided with a small negative 24-hour reaction.
Aug 19	Q2 earnings report	Positive	-9.8%	Revenue growth and subscriber additions coincided with a sharp negative reaction.
May 28	Q1 earnings report	Positive	-4.8%	Subscriber additions and earnings growth coincided with a negative 24-hour reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions aligned with positive news sentiment twice and diverged three times; the average move was -0.61%.

Key Terms

ebitda, telematics, diluted earnings per share, sec rule 10b-18

4 terms

ebitda financial

"EBITDA grew to $28.5 million, a 24% increase year-over-year."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

telematics technical

"our core stolen vehicle recovery and telematics businesses"

Telematics is the technology that collects, transmits and analyzes data from vehicles or remote equipment—such as location, speed, engine status and sensor readings—using GPS, cellular networks and onboard computers. For investors it matters because telematics turns physical assets into data-rich services, enabling new revenue streams (like usage-based insurance, fleet optimization, or predictive maintenance), reducing costs and improving risk visibility much like a fitness tracker does for health.

diluted earnings per share financial

"or diluted earnings per share of $0.88"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

sec rule 10b-18 regulatory

"in accordance with SEC Rule 10b-18."

A U.S. Securities and Exchange Commission safe harbor that sets specific conditions companies must follow when repurchasing their own shares, so those buybacks are less likely to be treated as illegal market manipulation. Think of it as a set of guardrails — timing, volume, and method limits — that give investors more predictability about how buybacks may affect share supply, price support and management’s flexibility to return cash to shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Record revenue of $104.8 million, up 21%, with subscription revenue up 25% year-over-year; EBITDA up 24% to a record $28.5 million

AZOUR, Israel, Aug. 12, 2026 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter, ended June 30, 2026.

Highlights of the Second Quarter of 2026

• Added 41,000 net subscribers in the quarter, bringing the total subscriber base to 2,711,000.
• Record quarterly revenue of $104.8 million, a 21% increase year-over-year.
• Net income of $17.3 million, a 29% increase year-over-year.
• EBITDA grew to $28.5 million, a 24% increase year-over-year.
• Record quarterly cash flow from operations of $32.2 million;
• The Board declared a quarterly dividend of $10 million, or $0.50 per share.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "The second quarter was an excellent quarter for Ituran. Revenue reached a record $104.8 million, a 21% increase year-over-year with our recurring subscription revenue growing by 25% year-over-year. Furthermore, our operating income, EBITDA and net income each grew faster than our revenue, demonstrating the operating leverage in our business model."

Mr. Sheratzky continued, "Our growth remains broad-based across Israel and Latin America, supported by our OEM partnerships and by newer segments. Alongside the core business, our growth initiatives continue to mature. IturanMob, our car rental solution, has expanded into the United States and was recognized during the quarter with a Global Tech Insider award, our Credit Carbon initiative continues to advance, and our Big Data capabilities are gaining commercial traction. We remain confident in our ability to deliver continued growth and profitability throughout 2026."

Second Quarter 2026 Results

Revenues for the quarter were a record $104.8 million, a 21% increase compared with $86.8 million in the second quarter of last year.

76% of revenues were from location-based service subscription fees, and 24% were from product revenues.

Revenues from subscription fees for the quarter were $79.8 million, an increase of 25% over the second quarter of last year.

The subscriber base expanded to 2,711,000 by the end of June 2026, marking a quarterly net increase of 41,000 and a year-over-year increase of 163,000.

Subscriber growth in the quarter continued to be driven by organic demand across our core stolen vehicle recovery and telematics businesses in Israel and Latin America, together with the ongoing contribution from our OEM programs.

Product revenues for the quarter were $25.0 million, an 8% increase year-over-year.

Gross profit for the quarter was $53.4 million (50.9% of revenues), a 24% increase compared with $42.9 million (49.5% of revenues) in the second quarter of last year.

Gross margin on subscription revenues improved to 58.8%, compared to 57.9% in Q2 last year. The gross margin on product revenues was 25.7%, compared to 26.0% 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 $23.8 million (22.7% of revenues), representing a 30% increase compared to $18.3 million (21.1% of revenues) in Q2 last year.

EBITDA for the quarter was $28.5 million (27.2% of revenues), up 24% from $22.9 million (26.4% of revenues) in the second quarter of last year.

Finance expenses for the quarter were $1.3 million, similar to finance expenses of $1.3 million in the second quarter of last year. The high level of financial expenses in the quarter was primarily due to the strength of the Israeli Shekel against the US Dollar, which lowered the value of US Dollar linked deposits held in Israel.

Net income for the second quarter of 2026 was $17.3 million (16.5% of revenues), or diluted earnings per share of $0.88, an increase of 29% compared to $13.5 million (15.5% of revenues), or $0.68 per diluted share, in the second quarter of last year.

Cash flow from operations for the quarter was $32.2 million.

On the balance sheet, as of June 30, 2026, the Company had net cash, including marketable securities, of $103.7 million, which includes no debt. This is compared with net cash, including marketable securities, of $107.6 million, as of year-end last year.

Dividend

The Board of Directors declared a dividend of $10 million for the quarter, or $0.50 per share. The current dividend takes into account the Company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet.

Buy Back

During the quarter $3.0 million in shares were purchased under the Company's share buy-back program. The total remaining authorization is approximately $10 million. Share repurchases will be funded by available cash and will be made in accordance with SEC Rule 10b-18.

Conference Call Information

The Company will also be hosting a video conference call via the Zoom platform later today, Wednesday, August 12, 2026 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_mE4jXN-IS0ufW5K5ZyeaUg

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, but not limited to, changes in global political, economic, business, competitive, market and regulatory factors. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. We disclaim any obligation to update forward-looking statements, even if our assumptions and projections change, except where applicable law may otherwise require us to do so.

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 and 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 2.7 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, Colombia, India, Canada and the United States.

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

Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg

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
			June 30,						December 31,
(In thousands)			2026						2025
			(unaudited)
Current assets
Cash and cash equivalents			103,700						107,551
Investments in marketable securities			3						3
Accounts receivable (net of provision for credit loss)			66,527						58,517
Other current assets			53,027						48,360
Inventories			24,974						23,213
			248,231						237,644
Long-term investments and other assets
Investments in affiliated companies			503						517
Investments in other companies			1,874						1,542
Other non-current assets			5,695						5,413
Deferred income taxes			18,489						15,684
Funds in respect of employee rights upon retirement			33,027						28,480
			59,588						51,636
Property and equipment, net			42,915						39,386
Operating lease right-of-use assets, net			8,004						8,878
Intangible assets, net			9,563						8,839
Goodwill			40,119						39,831
Total assets			408,420						386,214

 

 

 

	ITURAN LOCATION AND CONTROL LTD.
	CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)
			US dollars
			June 30,				December 31,
(In thousands)			2026				2025
			(unaudited)
Current liabilities
Accounts payable			25,725				19,082
Deferred revenues			29,427				27,206
Other current liabilities			67,211				57,817
			122,363				104,105
Long-term liabilities
Liability for employee rights upon retirement			39,839				35,080
Deferred income taxes			751				531
Deferred revenues			14,513				14,876
Operating lease liabilities, non-current			4,156				4,745
Other non-current liabilities			1,259				2,391
			60,518				57,623
Stockholders' equity			218,372				217,564
Non-controlling interests			7,167				6,922
Total equity			225,539				224,486
Total liabilities and equity			408,420				386,214

 

 

 

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)		2026			2025					2026				2025
Revenues: Telematics services		(unaudited)								(unaudited)
		155,224			125,936					79,824				63,756
Telematics products		52,230			47,312					24,964				23,037
		207,454			173,248					104,788				86,793
Cost of revenues: Telematics services		63,949			52,734					32,887				26,835
Telematics products		40,711			35,574					18,551				17,037
		104,660			88,308					51,438				43,872
Gross profit		102,794			84,940					53,350				42,921
Research and development expenses		10,555			9,920					5,538				5,058
Selling and marketing expenses		10,754			8,634					5,521				4,375
General and administrative expenses		35,848			29,369					18,533				15,131
Other expenses (income), net		(180)			27					-				21
Operating income		45,817			36,990					23,758				18,336
Financing expenses, net		(740)			(782)					(1,327)				(1,328)
Income before income tax		45,077			36,208					22,431				17,008
Income tax expenses		(10,159)			(7,329)					(4,592)				(3,263)
Share in profit (losses) of affiliated companies, net		(59)			(18)					(14)				16
Net income for the period		34,859			28,861					17,825				13,761
Less: net income attributable to non-controlling interest		(758)			(816)					(498)				(308)
Net income attributable to the company		34,101			28,045					17,327				13,453
Basic and diluted earnings per share attributable to      Company's stockholders		1.72			1.41					0.88				0.67
Basic and diluted weighted average number of shares      outstanding (in thousands		19,802			19,894					19,773				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)						2026		2025					2026					2025
						(unaudited)						(unaudited)
Cash flows from operating activities
Net income for the period						34,859			28,861					17,825					13,761
Adjustments to reconcile net income to net cash from operating     activities:
Depreciation and amortization						9,299			9,230					4,652					4,602
Loss in respect of trading marketable securities and other investments						-			8					-					-
Increase in liability for employee rights upon retirement						2,343			1,622					1,235					591
Share in losses (profit) of affiliated companies, net						59			18					14					(16)
Deferred income taxes						(2,255)			(387)					(1,042)					(302)
Capital loss on sale of property and equipment, net						124			89					180					58
Decrease (increase) in accounts receivable						(4,638)			(7,691)					4,233					(1,127)
Decrease in other current and non-current assets						188			4,800					1,706					4,822
Decrease (increase) in inventories						(655)			(58)					(3,160)					72
Increase (decrease) in accounts payable						5,477			(124)					3,173					(393)
Increase (decrease) in deferred revenues						833			1,354					(996)					607
Increase (decrease) in other current and non-current liabilities						4,834			163					4,399					(249)
Net cash provided by operating activities						50,468			37,885					32,219					22,426
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement,      net of withdrawals						(2,476)			(852)					(1,324)					(560)
Capital expenditures						(11,937)			(11,874)					(6,634)					(5,264)
Investments in affiliated and other companies, net						(172)			(110)					(124)					(106)
Repayment of (investment in) long-term deposit						(123)			(23)					(109)					61
Proceeds from sale of property and equipment						717			454					424					154
Net cash used in investment activities						(13,991)			(12,405)					(7,767)					(5,715)
Cash flows from financing activities
Short term credit from banking institutions, net						-			(114)					-					-
Acquisition of company shares						(3,579)			-					(3,048)					-
Dividend paid						(39,761)			(17,705)					(29,840)					(9,947)
Dividend paid to non-controlling interests						(1,913)			(1,677)					-					-
Net cash used in financing activities						(45,253)			(19,496)					(32,888)					(9,947)
Effect of exchange rate changes on cash and cash equivalents						4,925			5,394					4,167					6,288
Net change in cash and cash equivalents						(3,851)			11,378					(4,269)					13,052
Balance of cash and cash equivalents at beginning of period						107,551			77,357					107,969					75,683
Balance of cash and cash equivalents at end of period						103,700			88,735					103,700					88,735
Supplementary information on financing activities not involving cash flows:  In May 2026, the Company declared a dividend in an amount of US$10 million. The dividend was paid in July 2026.

 

 

 

View original content:https://www.prnewswire.com/news-releases/ituran-presents-second-quarter-2026-results-302849528.html

SOURCE Ituran Location and Control Ltd.

FAQ

How did Ituran (NASDAQ: ITRN) perform in Q2 2026?

Ituran reported strong Q2 2026 results, with revenue of $104.8 million, up 21% year-over-year. According to Ituran, net income attributable to the company rose 29% to $17.3 million, while EBITDA increased 24% to a record $28.5 million.

What were Ituran's Q2 2026 earnings per share (ITRN)?

Ituran reported diluted earnings per share of $0.88 for Q2 2026, compared with $0.67 in Q2 2025. According to Ituran, this 31% increase reflects higher operating income, improved margins and growth in its telematics subscription and product revenues.

How much revenue did Ituran generate from subscriptions in Q2 2026?

In Q2 2026, Ituran generated $79.8 million in subscription revenue, up 25% year-over-year. According to Ituran, subscriptions represented 76% of total revenue, supported by organic growth in Israel and Latin America and contributions from original equipment manufacturer (OEM) programs.

What was Ituran's subscriber base and growth in Q2 2026?

Ituran ended Q2 2026 with 2,711,000 subscribers, adding 41,000 net subscribers during the quarter. According to Ituran, the subscriber base increased by 163,000 year-over-year, driven by demand in stolen vehicle recovery and telematics services across Israel and Latin America.

What dividend did Ituran declare for Q2 2026 and what is the yield impact?

For Q2 2026, Ituran’s board declared a quarterly dividend of $10 million, or $0.50 per share. According to Ituran, the decision reflects ongoing profitability, positive cash flow and a strong balance sheet; yield impact depends on the prevailing share price at payment.

Did Ituran (ITRN) execute any share buybacks in Q2 2026?

Yes. Ituran repurchased $3.0 million of its shares under its buyback program during Q2 2026. According to Ituran, approximately $10 million remains authorized, with repurchases funded from available cash and executed in accordance with SEC Rule 10b-18.

What was Ituran's cash position and debt level as of June 30, 2026?

As of June 30, 2026, Ituran had net cash of $103.7 million, including marketable securities, and reported no debt. According to Ituran, cash and cash equivalents were $103.7 million, supporting dividends, share repurchases and ongoing investment in operations.