ITURAN PRESENTS FIRST QUARTER 2025 RESULTS
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.
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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.
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 International Investor
Relations
Udi Mizrahi
Ehud Helft
udi_m@ituran.com ituran@ekgir.com
Deputy CEO & VP Finance, Ituran EK Global Investor
Relations
(Israel) +972 3 557 1348 (US) +1 212 378 8040
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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
39,257 39,325
Goodwill
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
(unaudited)
Revenues:
Telematics services
62,180 60,935
Telematics products 24,275 24,091
86,455 85,026
25,899 25,521
Cost of revenues:
Telematics services
Telematics products 18,537 19,962
44,436 45,483
42,019 39,543
Gross profit
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
0.73 0.66
Basic and diluted earnings per share attributable to Company's stockholders
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.
