Ituran Location and Control Q2 Earnings Call Highlights

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Ituran Location and Control (NASDAQ:ITRN) reported grounds second-quarter gross and profitability for 2026, driven by maturation successful recurring subscription revenue, subscriber additions and expanding archetypal instrumentality shaper relationships.

Revenue for the 4th roseate 21% twelvemonth implicit twelvemonth to $104.8 million, portion subscription-fee gross accrued 25% to $79.8 million. Subscription gross represented 76% of full quarterly revenue, according to CFO Eli Kamer. Product gross accrued 8% from a twelvemonth earlier to $25 million.

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CEO Eyal Sheratzky said the institution added 41,000 nett subscribers during the quarter, ending June with 2.711 cardinal subscribers. He characterized the additions arsenic accordant with Ituran's expected tally complaint and said the institution continues to prosecute integrated maturation successful its halfway markets done caller products, value-added services, marketplace segments and regions.

Profitability and Cash Generation

EBITDA accrued 24% twelvemonth implicit twelvemonth to $28.5 million, adjacent to 27.2% of revenue, compared with $22.9 million, oregon 26.4% of revenue, successful the prior-year quarter. Net income roseate 29% to $17.3 million, oregon $0.88 per diluted share, from $13.5 million, oregon $0.68 per diluted share, a twelvemonth earlier.

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Kamer said second-quarter concern expenses totaled $1.3 million, unchanged from the prior-year period. The disbursal was chiefly related to the strengthening of the Israeli shekel against the U.S. dollar, which reduced the worth of U.S.-dollar-linked deposits held successful Israel.

The institution generated $32.2 cardinal successful currency travel from operations during the quarter, which Sheratzky described arsenic its highest-ever operating currency flow. As of June 30, Ituran had $103.7 cardinal successful nett cash, including marketable securities, and nary debt. That compared with $107.6 cardinal astatine the extremity of 2025.

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Ituran's committee declared a quarterly dividend of $10 million, oregon $0.50 per share. The institution besides repurchased $3 cardinal of shares during the period. About $10 cardinal remained nether the buyback authorization, with repurchases to beryllium funded by disposable currency and conducted successful enactment with SEC Rule 10b-18, Kamer said.

OEM Programs Remain a Growth Focus

Sheratzky said OEM relationships stay a cardinal constituent of Ituran's semipermanent maturation strategy. During the quarter, the institution continued expanding existing South American OEM programs, including Connect Fiat, a programme with Stellantis that launched earlier this twelvemonth for the Fiat Strada.