Financial Data and Key Metrics Changes - Ituran reported record revenues of $86.8 million for Q2 2025, a 2% increase from $84.9 million in Q2 2024 [12] - Subscription fee revenues increased by 6% year over year to $63.8 million, while product revenues decreased by 6% to $23 million due to a temporary halt in sales during the conflict [13] - Net income for the quarter was $13.5 million, a 2% increase compared to $13.1 million in the same quarter last year, with diluted earnings per share rising to 68 cents [15] Business Line Data and Key Metrics Changes - The subscriber base expanded to 2,548,000, adding 40,000 net subscribers in the quarter, with a target of 220,240 new subscribers for 2025 [5][13] - The company launched new telematics products, including a motorcycle solution, which is gaining traction in various markets [6][8] Market Data and Key Metrics Changes - The geographic revenue breakdown showed Israel contributing 54%, Brazil 23%, and the rest of the world 23% [14] - The strengthening of the US dollar against local currencies had a slight deflationary impact on financial results when denominated in US dollars, but local currency revenues grew by 4% year over year [12][13] Company Strategy and Development Direction - Ituran aims to continue its growth and profitability trajectory, focusing on expanding its subscriber base and launching new products [5] - The company is targeting the motorcycle market in Latin America, with a new partnership with BMW Motoraid in Brazil to enhance its market presence [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the war between Israel and Iran, which caused a temporary economic standstill but expressed confidence in ongoing growth [4][11] - The company remains optimistic about achieving its subscriber growth targets and exploring new avenues for business acceleration [11] Other Important Information - Ituran generated $22.4 million in operating cash flow during the quarter and declared a dividend of $10 million, reflecting strong profitability and cash flow [9][10] - The board of directors increased the dividend policy by 25% at the end of the previous year, now providing a solid annualized return of around 5% [10] Q&A Session Summary Question: How should growth be viewed in the second half, and is there a bounce back in Israel? - Management confirmed they are on track for subscriber growth of 220,000 to 240,000 in the second half of the year [20] Question: Can you provide more details on the BMW deal and its potential customer scope? - The partnership with BMW in Brazil is expected to yield tens of thousands of new subscribers annually, as they will install Ituran's motorcycle solution [21] Question: How should financial expenses be viewed going forward? - Financial expenses are linked to foreign exchange rates and cash deposits, with the current quarter's expenses affected by the strengthening of the Israeli shekel [22]

Company Overview - Ituran Location and Control Ltd. is a leader in mobility technology, providing location-based services including stolen vehicle recovery and fleet management [4] - The company has a significant presence in Latin America and Israel, with over 2.5 million subscribers using its services [5] - Ituran was established in 1995 and employs approximately 2,800 people globally, with offices in multiple countries [5] Financial Highlights - The Board of Directors approved a cash dividend of $0.50 per share, totaling approximately $10 million, to be paid on October 10, 2025 [1] - As of June 30, 2025, retained earnings were $234.3 million, which will decrease to $224.3 million after the dividend distribution [3] - The company had a cash balance of $88.7 million as of June 30, 2025, and no outstanding credit from banking institutions [3] Dividend Distribution - The dividend will be distributed to shareholders of record as of September 25, 2025, and will be subject to a 25% tax [1][2] - The Board confirmed that the dividend distribution will not affect the company's operational capabilities or future plans [2]

Core Insights - Ituran Location and Control Ltd. reported record revenue of $86.8 million for Q2 2025, marking a 2% increase from $84.9 million in Q2 2024 [3][4] - The company added 40,000 net new subscribers in the quarter, bringing the total subscriber base to 2,548,000, which is a year-over-year increase of 219,000 [5][8] - Despite challenges from a brief war with Iran affecting new car sales in Israel, Ituran continues to expect growth in its subscriber base by 220,000 to 240,000 in 2025 [2][3] Financial Performance - Subscription revenue for the quarter was $63.8 million, a 6% increase year-over-year, while product revenue decreased by 6% to $23.0 million due to the impact of the war [5][6] - Gross profit for the quarter was $42.9 million, representing 49.5% of revenues, an increase from 46.9% in the same quarter last year [6][8] - Operating income rose to $18.3 million (21.1% of revenues), a 3% increase compared to $17.7 million (20.9% of revenues) in Q2 2024 [8][9] Profitability Metrics - Net income for Q2 2025 was $13.5 million, a 2% increase from $13.1 million in Q2 2024, with diluted earnings per share rising to $0.68 [11][12] - EBITDA for the quarter totaled $22.9 million (26.4% of revenues), a slight decrease of 1% year-over-year [9][11] - The company declared a quarterly dividend of $10.0 million, or $0.50 per share, reflecting strong profitability and cash flow [13][26] Balance Sheet Highlights - As of June 30, 2025, Ituran had net cash of $88.7 million, an increase from $77.3 million at the end of 2024, with no debt [12][20] - Current assets totaled $221.6 million, while total liabilities and equity stood at $364.5 million [20][21] Market Position and Strategy - Ituran is a leader in location-based services, with a significant presence in Israel and Latin America, serving over 2.5 million subscribers [16][17] - The company continues to innovate with new telematics products, including offerings targeted at motorcycle owners, contributing to its growth strategy [2][3]

Company Overview - Ituran Location and Control Ltd. is a leader in mobility technology, providing location-based services including stolen vehicle recovery, fleet management, and mobile asset management for various industries [4][5] - The company is the largest OEM telematics provider in Latin America, with services utilized in over 20 countries [4] Subscriber Growth - Ituran has a growing subscriber base, exceeding 2.5 million users of its location-based services, maintaining a market-leading position in Israel and Latin America [5] Upcoming Conference Call - Ituran will release its second quarter 2025 results on August 19, 2025, and will host a video conference call at 9am Eastern Time to discuss the results and answer investor questions [1][2]

Core Insights - Ituran Location and Control Ltd. has partnered with BMW Motorrad Brasil to enhance telematics services for motorcycle riders in Brazil, significantly expanding Ituran's total addressable market [1][4] - The partnership aims to provide advanced safety and connectivity features for BMW Motorrad customers, including real-time location tracking and vehicle recovery services [2][3] Company Overview - Ituran is a leader in mobility technology, offering location-based services and is the largest OEM telematics provider in Latin America, with over 2.5 million subscribers [7][8] - BMW Group is a leading premium manufacturer of automobiles and motorcycles, with a global sales network in over 140 countries and a workforce of 159,104 employees as of December 31, 2024 [5][6] Partnership Details - The collaboration will provide BMW Motorrad customers with 24 months of free access to Ituran's services for new motorcycles, while existing customers will have special conditions to access the same features [3] - The initiative is expected to strengthen Ituran's innovation leadership in Brazil, a key market for its global growth [4]

Financial Data and Key Metrics Changes - First quarter revenues reached a record $86.5 million, a 2% increase compared to $85 million in the same quarter last year [13] - In local currency, revenues grew by 7% year over year [14] - EBITDA for the quarter was $23.3 million, representing 26.9% of revenues, an increase of 4% compared to $22.3 million or 26.3% of revenues in the same quarter last year [15] - Net income for the first quarter was $14.6 million, or diluted earnings per share of $0.73, a 12% increase compared to $13 million or diluted earnings per share of $0.66 in the same quarter last year [16] - Cash flow from operations for the quarter was $15.5 million, with net cash including marketable securities at $75.7 million as of March 31, 2025 [16] Business Line Data and Key Metrics Changes - Subscription fee revenues were $62.2 million, a 2% year-over-year increase, and in local currency, an increase of 9% [15] - Product revenues were $24.3 million, a 1% year-over-year increase, and in local currencies, an increase of 3% [15] - The subscriber base expanded to 2,508,000 by the end of the first quarter, an increase of 99,000 from the previous quarter [15] Market Data and Key Metrics Changes - Geographic revenue breakdown: Israel 55%, Brazil 23%, and the rest of the world 22% [15] - The strengthening of the US dollar against local currencies, particularly the Brazilian real and Mexican peso, had a deflating impact on financial results when denominated in US dollars [6] Company Strategy and Development Direction - The company aims to add between 220,000 and 240,000 new subscribers in 2025, with a focus on long-term growth in subscriber additions [11] - A new telematics service agreement with Stellantis is expected to broaden OEM relationships globally and contribute to future growth [9] - The company is exploring additional OEM agreements and expanding its service offerings in South America [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth throughout 2025, driven by strong demand for location-based products and telematics services [5] - The company acknowledged the impact of currency fluctuations on financial results but emphasized growth in local currencies [6] - Management highlighted the importance of the new OEM agreement with Stellantis as a strategic milestone [9] Other Important Information - The Board of Directors declared a dividend of $10 million for the quarter, reflecting the company's strong profitability and cash flow [10] - The current dividend yield on an annualized basis represents a return of around 6% [11] Q&A Session Summary Question: Does the new agreement with Stellantis imply setting up equipment for each produced car? - The current agreement is to provide services based on previously implemented technology, with potential for future expansion [19] Question: What primarily affected the ramp-up of the subscription base? - The initial jump in subscribers was due to a bulk acquisition of Stellantis car owners, but future growth is expected to return to around 40,000 per quarter [25] Question: What is the outlook for the insurance market in Latin America? - There is high demand for car sales solutions, and while UBI solutions are not currently widely accepted, competition may create opportunities in the future [33] Question: How does the company manage attrition rates and ARPU? - The company expects to convert customers from OEM deals to higher ARPU services after initial free trials, with lower churn rates due to lack of economic pressure on customers [40] Question: What is the expected level of CapEx for 2025? - CapEx is expected to decrease in the coming quarters after a higher than average first quarter [30]

Financial Data and Key Metrics Changes - First quarter revenues reached a record $86.5 million, a 2% increase compared to $85 million in the same quarter last year [13] - In local currency, revenues grew by 7% year over year [14] - EBITDA for the quarter was $23.3 million, representing 26.9% of revenues, an increase of 4% compared to $22.3 million or 26.3% of revenues in the same quarter last year [15] - Net income for the first quarter was $14.6 million, or diluted earnings per share of $0.73, a 12% increase compared to $13 million or diluted earnings per share of $0.66 in the same quarter last year [16] - Operating cash flow generated during the quarter was $15.5 million [10] Business Line Data and Key Metrics Changes - Subscription fee revenues were $62.2 million, a 2% year-over-year increase, and a 9% increase in local currency [15] - Product revenues were $24.3 million, a 1% year-over-year increase, and a 3% increase in local currencies [15] - The subscriber base expanded to 2,508,000 by the end of the first quarter, an increase of 99,000 from the previous quarter [15] Market Data and Key Metrics Changes - Geographic revenue breakdown: Israel 55%, Brazil 23%, rest of the world 22% [15] - The strengthening of the US dollar against local currencies, particularly the Brazilian real and Mexican peso, had a deflating impact on financial results when denominated in US dollars [6] Company Strategy and Development Direction - The company aims to add between 220,000 and 240,000 new subscribers in 2025, with a focus on long-term growth in subscriber additions [11] - A new telematics service agreement with Stellantis is expected to broaden OEM relationships globally and contribute to future growth [9] - The company is exploring additional OEM agreements to expand its services in South America [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth throughout 2025, driven by strong demand for location-based products and telematics services [6] - The company noted that while financial results in US dollars showed growth, local currency performance was even stronger [6] - Management highlighted the importance of the new OEM agreement with Stellantis as a significant milestone for future collaborations [9] Other Important Information - The Board of Directors declared a dividend of $10 million for the quarter, reflecting the company's strong profitability and cash flow [10][16] - The annualized dividend yield represents a return of around 6% [11] Q&A Session Summary Question: Does the new agreement with Stellantis imply setting up equipment for each produced car? - The current agreement is to provide services based on technology already implemented in Stellantis cars, with potential for future expansion [20] Question: What is the impact of the Stellantis agreement on the subscription base? - The agreement is expected to have a limited short-term impact, with significant contributions anticipated in the future as the customer base grows [22][26] Question: What factors are affecting the ramp-up of the subscription base? - The initial surge in subscribers was due to a bulk acquisition of Stellantis car owners, but future growth is expected to stabilize around 40,000 new subscribers per quarter [26] Question: What is the outlook for product gross margins? - Gross margins for telematics services are expected to improve with increased subscriber base, while product gross margins may fluctuate based on product mix [27][44] Question: What is the expectation for CapEx in 2025? - CapEx is expected to decrease in subsequent quarters after a higher than average first quarter due to inventory purchases [29] Question: What are the dynamics in the LATAM insurance market? - The company sees high demand for car sales solutions in Brazil, but insurance companies are currently hesitant to adopt usage-based insurance (UBI) solutions [32] Question: How does the company handle customer attrition rates? - The company does not experience significant churn due to the nature of OEM agreements, which provide free trials to customers [38]

Core Viewpoint - Ituran Location and Control Ltd. has announced a cash dividend distribution of $0.50 per share, totaling approximately $10 million, to be paid on July 2, 2025, to shareholders of record as of June 18, 2025 [1][2]. Financial Summary - The Board of Directors confirmed that the dividend distribution complies with Israeli law and will not affect the company's operational capabilities or future plans [2]. - Retained earnings before the dividend distribution were $230.7 million, which will decrease to $220.7 million post-distribution [3]. - As of March 31, 2025, the company had a cash balance of $75.7 million and no bank credit, with current assets (excluding cash) totaling $125.7 million and current liabilities at $93.3 million [3]. Company Overview - Ituran is a leader in mobility technology, providing location-based services such as Stolen Vehicle Recovery and fleet management, primarily in Israel and Latin America [4]. - The company has a subscriber base exceeding 2.5 million and operates in over 20 countries, employing approximately 2,800 people globally [5].

Core Insights - Ituran Location and Control Ltd. surpassed 2.5 million subscribers, achieving a net addition of 99,000 subscribers in the first quarter of 2025, and raised its 2025 net subscriber-add forecast to between 220,000 and 240,000 [1][3][6] Financial Performance - Revenues for the first quarter of 2025 were $86.5 million, a 2% increase from $85.0 million in the same quarter of 2024 [4][8] - Subscription fee revenues accounted for 72% of total revenues, amounting to $62.2 million, which is a 2% increase year-over-year [4][5] - Product revenues were $24.3 million, reflecting a 1% increase year-over-year [7][8] - Gross profit for the quarter was $42.0 million, representing 48.6% of revenues, a 6% increase compared to $39.5 million in Q1 2024 [7][9] - Operating income rose to $18.7 million, a 10% increase year-over-year [8][9] - Net income increased to $14.6 million, a 12% increase compared to $13.0 million in Q1 2024 [10][8] - EBITDA for the quarter was $23.3 million, up 4% from $22.3 million in the same quarter last year [10][8] Subscriber Growth - The subscriber base expanded to 2,508,000 by the end of March 2025, marking a quarterly increase of 99,000 [6][8] - The growth was significantly driven by a new telematics service agreement with Stellantis, the largest car manufacturer in Latin America [3][6] Dividend Declaration - The Board declared a quarterly dividend of $10 million, equivalent to $0.50 per share, reflecting the company's strong profitability and positive cash flow [8][12] Cash Flow and Balance Sheet - Cash flow from operations for the quarter was $15.5 million [11] - As of March 31, 2025, the company had net cash, including marketable securities, of $75.7 million, with no debt [11]

Group 1 - Ituran Location and Control Ltd. has announced a new multi-year service agreement with Stellantis in South America, which may expand to additional markets [1][2] - The partnership aims to enhance vehicle security and connectivity for Stellantis customers, leveraging Ituran's advanced stolen vehicle recovery and tracking solutions [2] - Ituran is the largest OEM telematics provider in Latin America, with a subscriber base of approximately 2.5 million users of its location-based services [3][4] Group 2 - Stellantis is the largest car manufacturer in Latin America, encompassing brands such as Fiat, Jeep, and Peugeot [2] - Ituran has been growing its subscriber base significantly since its inception in 1995 and currently employs around 3,000 people globally [4] - The company operates in over 20 countries, providing a full suite of location-based services for connected cars, including fleet management and personal security [3]