ITURAN PRESENTS SECOND QUARTER 2026 RESULTS
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
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
[email protected]
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348
International Investor Relations
Ehud Helft
[email protected]
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.
SOURCE Ituran Location and Control Ltd.