Ituran Location and Control(ITRN -5.44%) reported Q2 2025 earnings on August 19, 2025, achieving record revenues of $86.8 million with 2% year-over-year growth despite currency headwinds and a temporary market shutdown due to regional conflict. Net income rose 2% year-over-year to $13.5 million, supported by a net increase of 40,000 subscribers.

Subscriber base expands despite conflict disruption

The company achieved a net addition of 40,000 subscribers, bringing the total to 2,548,000, even though the war between Israel and Iran halted new car sales and economic activity in Israel for about two weeks. Management reiterated the 2025 forecast of 220,000 to 240,000 net subscriber additions, maintaining their guidance despite macroeconomic and regional challenges.

"This was achieved despite a war between Israel and Iran during the quarter, which led to an approximate two-week suspension of economic activities in Israel. On the positive side, during the quarter, Ituran Location and Control Ltd. celebrated its thirtieth birthday, of which 20 of those have been as a public company. This is a significant milestone, and I'm proud of what we have been able to accomplish over the years, thanks to our dedicated employees and management. Our results show ongoing expansion across our target geographies, with a large subscriber base of over 2.5 million as of Q2 2025. In the second quarter, we added 40,000 net, and we remain on track for 2025 subscriber growth to reach between 220,000 and 240,000 net subscribers."
-- Eyal Sheratzky, CEO

This resilience in subscriber growth, even during significant geopolitical disruptions, underscores the defensive qualities of the company’s subscription-based business model.

Ituran partners with BMW Motorrad to capture new market

The company announced a strategic partnership with BMW Motorrad in Brazil, targeting the high-growth Latin American motorcycle telematics market; this follows the successful traction of new motorcycle product offerings in the region. Approximately 23% of revenue originated from Brazil, reflecting the region's growing significance and underlining the potential to expand total addressable market (TAM) through OEM agreements.

"BMW motorcycles in Brazil have signed with us a kind of a partnership agreement. They're going to install our motorcycle solution with their motorcycles, with the BMW motorcycle. It's a very strong brand in Brazil."
-- Eyal Sheratzky, CEO

This OEM relationship offers potential for high-volume, recurring subscription growth, accelerating penetration in the under-tapped motorcycle segment and reinforcing the company's competitive positioning in Latin America.

Dividend policy and cash generation signal sustained shareholder returns

The board approved a $10 million quarterly dividend, marking a 25% increase from the $8 million baseline established in 2024, with $6 million still available under the share buyback program as of quarter-end. The company reported $88.7 million in net cash and marketable securities as of June 30, 2025, up from $77.3 million at year-end 2024, reflecting robust capital discipline and sustained profitability.

"Ituran Location and Control Ltd. generated a high level of cash in the quarter, amounting to $22.4 million in operating cash flow during the quarter. Ituran Location and Control Ltd. is focused on shareholder value creation, and as such, the Board of Directors decided to issue a dividend of $10 million to shareholders. I remind you that at the end of last year, we increased our dividend policy by 25%, from issuing $8 million per quarter to $10 million."
-- Eyal Sheratzky, CEO

Management’s willingness to boost both dividends and buybacks, paired with significant cash reserves, points to the durability of free cash flow and the company's commitment to return capital to shareholders—an appealing attribute for long-term investors.

Looking Ahead

Management reaffirmed 2025 net subscriber growth expectations of 220,000 to 240,000, supported by product launches and geographic expansion, particularly in the motorcycle segment. Future revenue growth, while forecast for 2025, remains subject to local currency fluctuations given the company's global exposure. No explicit EPS or EBITDA targets were provided for subsequent quarters.