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,
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
First Quarter 2025 Results
Revenues for the quarter were
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
The subscriber base surpassed Ituran's 2.5 million milestone during the quarter, and expanded to 2,508,000 by the end of
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
Gross profit for the quarter was
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
EBITDA for the quarter was
Net income for the quarter was
Cash flow from operations for the quarter was
On the balance sheet, as of
Dividend
The Board of Directors declared a dividend of
The Company will also be hosting a video conference call via the Zoom platform later today,
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
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
For more information, please visit Ituran's website, at: www.ituran.com
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Company Contact
Deputy CEO & VP Finance, Ituran
( |
International Investor Relations
EK Global Investor Relations (US) +1 212 378 8040 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
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||||||
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|
US dollars |
|||||
|
|
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||||
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(In thousands) |
2025 |
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2024 |
|||
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|
(unaudited) |
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|||
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Current assets
|
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|||
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Cash and cash equivalents |
75,683 |
|
77,357 |
|||
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Investments in marketable securities |
2 |
|
10 |
|||
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Accounts receivable (net of provision for credit loss) |
54,217 |
|
47,688 |
|||
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Other current assets |
48,182 |
|
46,067 |
|||
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Inventories |
23,281 |
|
23,434 |
|||
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|
201,365 |
|
194,556 |
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Long-term investments and other assets |
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Investments in affiliated companies |
479 |
|
519 |
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Investments in other companies |
1,530 |
|
1,491 |
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Other non-current assets |
5,891 |
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5,853 |
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Deferred income taxes |
12,585 |
|
12,273 |
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Funds in respect of employee rights upon retirement |
21,690 |
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21,823 |
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|
42,175 |
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41,959 |
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Property and equipment, net |
35,951 |
|
33,080 |
|||
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Operating lease right-of-use assets, net |
9,115 |
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8,947 |
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Intangible assets, net |
8,686 |
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9,011 |
|||
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39,257 |
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39,325 |
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Total assets |
336,549 |
|
326,878 |
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CONDENSED CONSOLIDATED BALANCE SHEETS (cont.) |
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US dollars |
|||||
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(In thousands) |
2025 |
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2024 |
|||
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(unaudited) |
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Current liabilities
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Credit from banking institutions |
- |
|
114 |
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Accounts payable |
20,040 |
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18,847 |
|||
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Deferred revenues |
24,338 |
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22,857 |
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Other current liabilities |
48,962 |
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45,904 |
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|
93,340 |
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87,722 |
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Long-term liabilities |
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Liability for employee rights upon retirement |
28,070 |
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27,593 |
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Deferred income taxes |
439 |
|
418 |
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Deferred revenues |
11,701 |
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12,231 |
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Operating lease liabilities, non-current |
5,358 |
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5,562 |
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Other non-current liabilities |
2,125 |
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2,095 |
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|
47,693 |
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47,899 |
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Stockholders' equity |
190,674 |
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185,227 |
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Non-controlling interests |
4,842 |
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6,030 |
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Total equity |
195,516 |
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191,257 |
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Total Liabilities and equity |
336,549 |
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326,878 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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US dollars |
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Three months period |
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(in thousands, except per share data) |
|
2025 |
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2024 |
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Revenues: Telematics services |
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(unaudited)
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62,180 |
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60,935 |
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Telematics products |
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24,275 |
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24,091 |
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86,455 |
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85,026 |
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Cost of revenues: Telematics services |
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25,899 |
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25,521 |
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Telematics products |
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18,537 |
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19,962 |
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44,436 |
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45,483 |
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Gross profit |
|
42,019 |
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39,543 |
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Research and development expenses |
|
4,862 |
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4,523 |
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Selling and marketing expenses |
|
4,259 |
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3,574 |
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General and administrative expenses |
|
14,238 |
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14,456 |
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Other expenses (income), net |
|
6 |
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(39) |
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Operating income |
|
18,654 |
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17,029 |
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Financing income, net |
|
546 |
|
75 |
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Income before income tax |
|
19,200 |
|
17,104 |
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Income tax expenses |
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(4,066) |
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(3,430) |
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Share in losses of affiliated companies, net |
|
(34) |
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(81) |
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Net income for the period |
|
15,100 |
|
13,593 |
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Less: Net income attributable to non-controlling interest |
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(508) |
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(557) |
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Net income attributable to the company |
|
14,592 |
|
13,036 |
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Basic and diluted earnings per share attributable to Company's stockholders |
|
0.73 |
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0.66 |
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Basic and diluted weighted average number of shares outstanding (in thousands) |
|
19,894 |
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19,894 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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US dollars |
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Three months period |
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(in thousands) |
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2025 |
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2024 |
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(unaudited) |
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Cash flows from operating activities |
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Net income for the period |
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15,100 |
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13,593 |
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Adjustments to reconcile net income to net cash from operating activities: |
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Depreciation and amortization |
|
4,628 |
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5,298 |
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Loss (gain) in respect of trading marketable securities and other investments |
|
8 |
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(104) |
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Increase in liability for employee rights upon retirement |
|
1,031 |
|
762 |
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Share in losses of affiliated companies, net |
|
34 |
|
81 |
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Deferred income taxes |
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(85) |
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(790) |
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Capital loss on sale of property and equipment, net |
|
31 |
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36 |
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Increase in accounts receivable |
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(6,564) |
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(4,840) |
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Increase in other current and non-current assets |
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(22) |
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(3,485) |
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Decrease (increase) in inventories |
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(130) |
|
521 |
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Increase (decrease) in accounts payable |
|
269 |
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(470) |
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Increase in deferred revenues |
|
747 |
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1,264 |
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Increase (decrease) in other current and non-current liabilities |
|
412 |
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(464) |
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Net cash provided by operating activities |
|
15,459 |
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11,402 |
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Cash flows from investment activities |
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Increase in funds in respect of employee rights upon retirement, net of withdrawals |
|
(292) |
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(707) |
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Capital expenditures |
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(6,610) |
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(3,131) |
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Return from (investments in) affiliated and other companies, net |
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(4) |
|
138 |
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Repayment of (Investment in) long-term deposit |
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(84) |
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64 |
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Proceeds from sale of property and equipment |
|
300 |
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156 |
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Net cash used in investment activities |
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(6,690) |
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(3,480) |
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Cash flows from financing activities |
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Short term credit from banking institutions, net |
|
(114) |
|
(273) |
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Dividend paid |
|
(7,758) |
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(4,774) |
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Dividend paid to non-controlling interests |
|
(1,677) |
|
(1,630) |
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Net cash used in financing activities |
|
(9,549) |
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(6,677) |
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Effect of exchange rate changes on cash and cash equivalents |
|
(894) |
|
(644) |
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Net change in cash and cash equivalents |
|
(1,674) |
|
601 |
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Balance of cash and cash equivalents at beginning of period |
|
77,357 |
|
53,434 |
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Balance of cash and cash equivalents at end of period |
|
75,683 |
|
54,035 |
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Supplementary information on investing and financing activities not involving cash flows:
In
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