ITURAN PRESENTS FIRST QUARTER 2026 RESULTS
Revenue growth of 19% and subscription revenue up 21% year-over-year;
EBITDA grows 15% to $26.7 million;
AZUR, Israel – May 26, 2026. Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the first quarter 2026.
Highlights of the First Quarter of 2026
| · | Added 40,000 net subscribers in the quarter, bringing the total subscriber base to 2,670,000. |
| · | Quarterly revenue surpasses a milestone reaching $102.7 million, a 19% increase year-over-year. |
| · | Operating income of $22.1 million, an 18% increase year-over-year. |
| · | Net income of $16.8 million, a 15% increase year-over-year. |
| · | EBITDA grew to $26.7 million, a 15% 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 pleased to report a strong start to 2026, with revenue crossing the $100 million milestone for the first time. Furthermore, our revenue, operating income, EBITDA and net income all grew year-over-year by double digits. Our strong revenue growth was driven by a 21% increase in subscription revenues to $75.4 million. During the quarter, we added 40,000 net subscribers, in line with expectations. The long-term success in growing our global subscriber base consistently is due to offerings of new products and services to existing customers while tapping into new segments and new markets.”
Mr. Sheratzky continued, “We continue to see solid performance across our core markets in Israel and Latin America, with ongoing traction in telematics services for motorcycles and financing products. Our OEM relationships remain a key growth driver, and we are advancing well with new initiatives including IturanMob, which has expanded into the United States market, our Big Data analytics offering, and Credit Carbon. We remain confident in our ability to deliver continued growth and profitability in 2026, and in our longer-term strategy to transform Ituran into a significantly larger company.”
First Quarter 2026 Results
Revenues for the quarter were $102.7 million, a 19% increase compared with $86.5 million in the first quarter of last year.
73% of revenues were from location-based service subscription fees, and 27% were from product revenues.
Revenues from subscription fees for the quarter were $75.4 million, an increase of 21% over the first quarter of last year.
The subscriber base expanded to 2,670,000 by the end of March 2026, marking a quarterly net increase of 40,000.
Subscriber growth in the quarter was driven by continued traction in our core stolen vehicle recovery and telematics businesses across Israel and Latin America.
Product revenues for the quarter were $27.3 million, a 12% increase year-over-year.
Gross profit for the quarter was $49.4 million (48.2% of revenues), an 18% increase compared with $42.0 million (48.6% of revenues) in the first quarter of last year.
Gross margin on subscription revenues improved to 58.8%, compared to 58.3% in Q1 last year. The gross margin on product revenues was 18.7%, compared to 23.6% 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 $22.1 million (21.5% of revenues), representing an 18% increase compared to $18.7 million (21.6% of revenues) in Q1 last year.
EBITDA for the quarter was $26.7 million (26.0% of revenues), up 15% from $23.3 million (26.9% of revenues) in the first quarter of last year.
Net income for the first quarter of 2026 was $16.8 million (16.3% of revenues), or diluted earnings per share of $0.85, an increase of 15% compared to $14.6 million (16.9% of revenues), or $0.73 per diluted share, in the first quarter of last year.
Cash flow from operations for the quarter was $18.2 million.
On the balance sheet, as of March 31, 2026, the Company had net cash, including marketable securities, of $108.0 million. This is compared with net cash, including marketable securities, of $107.6 million, as of year-end last year. During the first quarter, Ituran paid a dividend to shareholders relating to the third quarter of last year, amounting to a total of $10 million.
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.
Buy Back
The Board of Directors previously authorized a new $10 million increase to the Company’s existing share buy-back program. During the quarter $0.5 million in shares were purchased under the buy-back program. The total remaining authorization is $13.0 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, Tuesday, May 26, 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_Jx5K81s0TCqmGqEj3AgRdA
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 2.6 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
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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 Financial Statements
as of March 31, 2026
ITURAN LOCATION AND CONTROL LTD.
Condensed Consolidated Financial Statements
as of March 31, 2026
Table of Contents
| Page | |
| Condensed Consolidated Interim Financial Statements: | |
| Condensed Consolidated Balance Sheets | 2-3 |
| Condensed Consolidated Statements of Income | 4 |
| Condensed Consolidated Statements of Cash Flows | 5 |
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
| US dollars | ||||||||
| March 31, | December 31, | |||||||
| (In thousands) | 2026 | 2025 | ||||||
| (unaudited) | ||||||||
Current assets | ||||||||
| Cash and cash equivalents | 107,969 | 107,551 | ||||||
| Investments in marketable securities | 3 | 3 | ||||||
| Accounts receivable (net of provision for credit loss) | 68,096 | 58,517 | ||||||
| Other current assets | 51,913 | 48,360 | ||||||
| Inventories | 20,968 | 23,213 | ||||||
| 248,949 | 237,644 | |||||||
| Long-term investments and other assets | ||||||||
| Investments in affiliated companies | 460 | 517 | ||||||
| Investments in other companies | 1,661 | 1,542 | ||||||
| Other non-current assets | 5,713 | 5,413 | ||||||
| Deferred income taxes | 17,250 | 15,684 | ||||||
| Funds in respect of employee rights upon retirement | 29,841 | 28,480 | ||||||
| 54,925 | 51,636 | |||||||
| Property and equipment, net | 40,449 | 39,386 | ||||||
| Operating lease right-of-use assets, net | 8,004 | 8,878 | ||||||
| Intangible assets, net | 9,007 | 8,839 | ||||||
| Goodwill | 39,863 | 39,831 | ||||||
| Total assets | 401,197 | 386,214 | ||||||
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ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)
| US dollars | ||||||||
| March 31, | December 31, | |||||||
| (In thousands) | 2026 | 2025 | ||||||
| (unaudited) | ||||||||
Current liabilities | ||||||||
| Accounts payable | 22,181 | 19,082 | ||||||
| Deferred revenues | 30,375 | 27,206 | ||||||
| Other current liabilities | 78,694 | 57,817 | ||||||
| 131,250 | 104,105 | |||||||
| Long-term liabilities | ||||||||
| Liability for employee rights upon retirement | 36,431 | 35,080 | ||||||
| Deferred income taxes | 692 | 531 | ||||||
| Deferred revenues | 13,563 | 14,876 | ||||||
| Operating lease liabilities, non-current | 4,321 | 4,745 | ||||||
| Other non-current liabilities | 1,191 | 2,391 | ||||||
| 56,198 | 57,623 | |||||||
| Stockholders' equity | 207,452 | 217,564 | ||||||
| Non-controlling interests | 6,297 | 6,922 | ||||||
| Total equity | 213,749 | 224,486 | ||||||
| Total Liabilities and equity | 401,197 | 386,214 | ||||||
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| ITURAN LOCATION AND CONTROL LTD. |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| US dollars | ||||||||
| Three months period ended March 31, | ||||||||
| (in thousands, except per share data) | 2026 | 2025 | ||||||
| (unaudited) | ||||||||
| Revenues: | ||||||||
| Telematics services | 75,400 | 62,180 | ||||||
| Telematics products | 27,266 | 24,275 | ||||||
| 102,666 | 86,455 | |||||||
| Cost of revenues: | ||||||||
| Telematics services | 31,062 | 25,899 | ||||||
| Telematics products | 22,160 | 18,537 | ||||||
| 53,222 | 44,436 | |||||||
| Gross profit | 49,444 | 42,019 | ||||||
| Research and development expenses | 5,017 | 4,862 | ||||||
| Selling and marketing expenses | 5,233 | 4,259 | ||||||
| General and administrative expenses | 17,315 | 14,238 | ||||||
| Other expenses (income), net | (180 | ) | 6 | |||||
| Operating income | 22,059 | 18,654 | ||||||
| Financing income, net | 587 | 546 | ||||||
| Income before income tax | 22,646 | 19,200 | ||||||
| Income tax expenses | (5,567 | ) | (4,066 | ) | ||||
| Share in losses of affiliated companies, net | (45 | ) | (34 | ) | ||||
| Net income for the period | 17,034 | 15,100 | ||||||
| Less: Net income attributable to non-controlling interest | (260 | ) | (508 | ) | ||||
| Net income attributable to the Company | 16,774 | 14,592 | ||||||
| Basic and diluted earnings per share attributable to Company's stockholders | 0.85 | 0.73 | ||||||
| Basic and diluted weighted average number of shares outstanding | 19,808 | 19,894 | ||||||
4
| ITURAN LOCATION AND CONTROL LTD. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| US dollars | ||||||||
| Three months period ended March 31, | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| (unaudited) | ||||||||
| Cash flows from operating activities | ||||||||
| Net income for the period | 17,034 | 15,100 | ||||||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation and amortization | 4,647 | 4,628 | ||||||
| Loss in respect of trading marketable securities and other investments | 8 | |||||||
| Increase in liability for employee rights upon retirement | 1,108 | 1,031 | ||||||
| Share in losses of affiliated companies, net | 45 | 34 | ||||||
| Deferred income taxes | (1,213 | ) | (85 | ) | ||||
| Capital loss (gain) on sale of property and equipment, net | (56 | ) | 31 | |||||
| Increase in accounts receivable | (8,871 | ) | (6,564 | ) | ||||
| Increase in other current and non-current assets | (1,518 | ) | (22 | ) | ||||
| Decrease (increase) in inventories | 2,505 | (130 | ) | |||||
| Increase in accounts payable | 2,304 | 269 | ||||||
| Increase in deferred revenues | 1,829 | 747 | ||||||
| Increase in other current and non-current liabilities | 435 | 412 | ||||||
| Net cash provided by operating activities | 18,249 | 15,459 | ||||||
| Cash flows from investment activities | ||||||||
| Increase in funds in respect of employee rights upon retirement, net of withdrawals | (1,152 | ) | (292 | ) | ||||
| Capital expenditures | (5,303 | ) | (6,610 | ) | ||||
| Investments in affiliated and other companies, net | (48 | ) | (4 | ) | ||||
| Investments in long-term deposit | (14 | ) | (84 | ) | ||||
| Proceeds from sale of property and equipment | 293 | 300 | ||||||
| Net cash used in investment activities | (6,224 | ) | (6,690 | ) | ||||
| Cash flows from financing activities | ||||||||
| Short term credit from banking institutions, net | - | (114 | ) | |||||
| Acquisition of company shares | (531 | ) | - | |||||
| Dividend paid | (9,921 | ) | (7,758 | ) | ||||
| Dividend paid to non-controlling interests | (1,913 | ) | (1,677 | ) | ||||
| Net cash used in financing activities | (12,365 | ) | (9,549 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 758 | (894 | ) | |||||
| Net change in cash and cash equivalents | 418 | (1,674 | ) | |||||
| Balance of cash and cash equivalents at beginning of period | 107,551 | 77,357 | ||||||
| Balance of cash and cash equivalents at end of period | 107,969 | 75,683 | ||||||
Supplementary information on investing and financing activities not involving cash flows:
In March 2026, the Company declared a dividend in an amount of US$ 30 million. The dividend was paid in April 2026.
5