EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

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. 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
  
International Investor Relations
Udi Mizrahi
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348
Ehud Helft
ituran@ekgir.com
EK Global  Investor Relations
(US) +1 212 378 8040
 
ITURAN LOCATION AND CONTROL LTD.
 
Condensed Consolidated Financial Statements
as of March 31, 2025

ITURAN LOCATION AND CONTROL LTD.
 
Condensed Consolidated Financial Statements
as of March 31, 2025
 
Table of Contents
 
 
Page
Condensed Consolidated Interim Financial Statements:
  
2-3
4
5

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
  

2
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
  

3
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
  
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
  

4
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.
 
5