Ituran Location and Control Ltd.

Second-quarter revenue was a record $104.8 million, up 21% from $86.8 million a year ago. Subscription revenue was $79.8 million, up 25% year over year, and product revenue was $25 million, up 8%. EBITDA was $28.5 million, or 27.2% of revenue, versus $22.9 million, or 26.4%, last year. Net income was $17.3 million, or 16.5% of revenue, versus $13.5 million, or 15.5%, and diluted EPS was $0.88 versus $0.68. Cash flow from operations was $32.2 million; net cash including marketable securities was $103.7 million with no debt. The board declared a $10 million dividend, or $0.50 per share, and the company bought back $3 million of shares, with about $10 million remaining under authorization. Management did not provide formal next-quarter or full-year financial guidance, but said it remains confident in continued growth and profitability through 2026.

Eyal Sheratzky framed the quarter as broad-based execution, calling Q2 “excellent” with record revenue and profitability across every line of the income statement. He emphasized that the business model is showing operating leverage, with profit growth outpacing revenue growth, and said the subscriber base is still growing organically in line with expectations. Strategically, he highlighted OEM relationships as the main long-term growth vector, with ramps in South America and active discussions with additional OEMs, plus early-stage big data and new initiatives that could expand the company’s addressable market.

Eli Kamer focused on the financial bridge: revenue rose to $104.8 million, EBITDA margin expanded to 27.2%, and net income increased to $17.3 million with diluted EPS of $0.88. He noted finance expenses were $1.3 million, mainly due to shekel strength against the U.S. dollar, and said the FX effect was roughly $1 million on EBIT, similar to last quarter. He also highlighted strong liquidity, with $103.7 million of net cash including marketable securities and no debt, and reiterated capital returns through a $10 million dividend and $3 million of buybacks, with about $10 million still authorized.

Analysts focused on big data, asking about the Ministry of Transportation project, the geographic pipeline, FX impacts, and the U.S. IturanMob initiative. Management said the ministry deal closed in Q1 and was only a few million shekels, but it validates a broader public-sector opportunity; they expect more, potentially larger deals in transportation and municipality use cases. On geography, management said Israel is the starting point because of the dense subscriber base and data quality, with Brazil and Mexico viewed as the next step after building experience. For IturanMob, management said market interest is building but monetization is still low and the project remains midterm, with no substantial contribution expected in 2026 or 2027. They also said motorcycle OEM programs in Brazil are ramping strongly, while UBI is growing in Israel but remains niche and slow to expand internationally.