ITURAN PRESENTS SECOND QUARTER 2026 RESULTS

ITURAN PRESENTS SECOND QUARTER 2026 RESULTS

PR Newswire

AZOUR, Israel, Aug. 12, 2026

Record revenue of $104.8 million, up 21%, with subscription revenue up 25% year-over-year; EBITDA up 24% to a record $28.5 millionAZOUR, 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 2026Added 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 CommentEyal 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 ResultsRevenues 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.DividendThe 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 BackDuring 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 InformationThe 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-IS0ufW5K5ZyeaUgFor 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 IturanIturan 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.jpgCompany ContactUdi Mizrahiudi_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 8040ITURAN LOCATION AND CONTROL LTD.CONDENSED CONSOLIDATED BALANCE SHEETSUS dollarsJune 30,December 31,(In thousands)20262025(unaudited)Current assetsCash and cash equivalents103,700107,551Investments in marketable securities 33Accounts receivable (net of provision for credit loss)66,52758,517Other current assets53,02748,360Inventories24,97423,213248,231237,644Long-term investments and other assetsInvestments in affiliated companies503517Investments in other companies1,8741,542Other non-current assets5,6955,413Deferred income taxes18,48915,684Funds in respect of employee rights upon retirement33,02728,48059,58851,636Property and equipment, net42,91539,386Operating lease right-of-use assets, net8,0048,878Intangible assets, net9,5638,839Goodwill 40,11939,831Total assets408,420386,214ITURAN LOCATION AND CONTROL LTD.CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)US dollarsJune 30,December 31,(In thousands)20262025(unaudited)Current liabilitiesAccounts payable 25,72519,082Deferred revenues 29,42727,206Other current liabilities 67,21157,817122,363104,105Long-term liabilities Liability for employee rights upon retirement39,83935,080Deferred income taxes751531Deferred revenues 14,51314,876Operating lease liabilities, non-current4,1564,745Other non-current liabilities 1,2592,39160,51857,623Stockholders' equity218,372217,564Non-controlling interests7,1676,922Total equity225,539224,486Total liabilities and equity408,420386,214ITURAN LOCATION AND CONTROL LTD.CONDENSED CONSOLIDATED STATEMENTS OF INCOMEUS dollarsSix months periodended June 30,Three months periodended June 30,(in thousands, except per share data)2026202520262025Revenues:Telematics services (unaudited)(unaudited)155,224125,93679,82463,756Telematics products52,23047,31224,96423,037207,454173,248104,78886,793Cost of revenues:Telematics services 63,94952,73432,88726,835Telematics products40,71135,57418,55117,037104,66088,30851,43843,872Gross profit102,79484,94053,35042,921Research and development expenses 10,5559,9205,5385,058Selling and marketing expenses 10,7548,6345,5214,375General and administrative expenses 35,84829,36918,53315,131Other expenses (income), net(180)27-21Operating income45,81736,99023,75818,336Financing expenses, net(740)(782)(1,327)(1,328)Income before income tax45,07736,20822,43117,008Income tax expenses (10,159)(7,329)(4,592)(3,263)Share in profit (losses) of affiliated companies, net(59)(18)(14)16Net income for the period34,85928,86117,82513,761Less: net income attributable to non-controlling interest(758)(816)(498)(308)Net income attributable to the company 34,10128,04517,32713,453Basic and diluted earnings per share attributable to Company's stockholders1.721.410.880.67Basic and diluted weighted average number of shares outstanding (in thousands19,80219,89419,77319,894ITURAN LOCATION AND CONTROL LTD.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSUS dollarsSix months periodended June 30,Three months periodended June 30,(in thousands)2026202520262025(unaudited)(unaudited)Cash flows from operating activitiesNet income for the period34,85928,86117,82513,761Adjustments to reconcile net income to net cash from operating activities:Depreciation and amortization9,2999,2304,6524,602Loss in respect of trading marketable securities and other investments-8--Increase in liability for employee rights upon retirement2,3431,6221,235591Share in losses (profit) of affiliated companies, net591814(16)Deferred income taxes(2,255)(387)(1,042)(302)Capital loss on sale of property and equipment, net1248918058Decrease (increase) in accounts receivable(4,638)(7,691)4,233(1,127)Decrease in other current and non-current assets1884,8001,7064,822Decrease (increase) in inventories(655)(58)(3,160)72Increase (decrease) in accounts payable5,477(124)3,173(393)Increase (decrease) in deferred revenues8331,354(996)607Increase (decrease) in other current and non-current liabilities4,8341634,399(249)Net cash provided by operating activities50,46837,88532,21922,426Cash flows from investment activitiesIncrease 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)61Proceeds from sale of property and equipment717454424154Net cash used in investment activities(13,991)(12,405)(7,767)(5,715)Cash flows from financing activitiesShort 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 equivalents4,9255,3944,1676,288Net change in cash and cash equivalents(3,851)11,378(4,269)13,052Balance of cash and cash equivalents at beginning of period107,55177,357107,96975,683Balance of cash and cash equivalents at end of period103,70088,735103,70088,735Supplementary 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.