ITURAN PRESENTS FOURTH QUARTER & FULL YEAR 2025 RESULTS

Mr. Sheratzky continued, "Given our success and strong cash generation, we announced a special dividend of $20 million and a new share buy-back program of $10 million, in addition to the regular dividend policy of $10 million per quarter. The dividends issued for 2025 represent a yield of 7% based on our year-end share price, and approximately 100% of our net income for the year. This signifies the importance we place on sharing the fruits of our ongoing success with our shareholders."

Mr. Sheratzky added, "2026 started with strong momentum in our strategic partnerships. We are continuously working to add new partners to our growing OEM roster to drive further growth in our subscriber base. We recently announced a new agreement with Stellantis to launch the 'Connect Fiat' project in South America. This full end-to-end solution, spanning hardware, services, and the user app, reinforces our leadership in the region in providing telematics services to OEMs and their customers, and our ability to deliver fully integrated connectivity at scale."

Concluded Mr. Sheratzky, "After several years of investment in developing new offerings and services that significantly expand our total addressable market, we expect to begin seeing the returns on these investments in 2026. In addition to Israel and Brazil, our first initiative, IturanMob, has expanded its operations into the United States market, where it targets small and mid-sized car rental companies, streamlining and significantly improving the vehicle rental process. The second is our Big Data initiative, which leverages the large volumes of data we collect and monetizes it by offering valuable insights to third parties. The third initiative, Credit Carbon, enables EV owners to monetize their low carbon footprint through Ituran's advanced technological platform. I am very excited about these initiatives and strongly believe they have the potential to transform Ituran into a significantly larger company over the coming years."

Fourth Quarter 2025 Results

Revenues for the fourth quarter of 2025 were $93.5 million, a 13% increase compared with revenues of $82.9 million in the fourth quarter of 2024.

76% of revenues were from location-based service subscription fees, and 24% were from product revenues.

Revenues from subscription fees were $71.1 million, an increase of 15% over the fourth quarter of 2024 revenues.  

The subscriber base expanded to 2,630,000 by the end of December 2025, marking an increase of 42,000 from the previous quarter.

Product revenues were $22.4 million, an increase of 5% year-over-year.

Gross profit for the quarter was $47.2 million (50.5% of revenues), a 15% increase compared with gross profit of $41.1 million (49.6% of revenues) in the fourth quarter of last year.

The gross margin in the quarter on subscription revenues was 59.5%, compared to 59.6% in the fourth quarter of last year. The gross margin on products was 21.9% in the quarter, compared with 20.8% in the fourth quarter of 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 $20.4 million (21.8% of revenues), representing a 13% increase compared to $18.0 million (21.8% of revenues) in the fourth quarter of last year.

EBITDA for the quarter was $25.3 million (27.1% of revenues), an increase of 12% compared with EBITDA of $22.5 million (27.2% of revenues) in the fourth quarter of last year.

Net income for the fourth quarter of 2025 was $15.3 million (16.3% of revenues) or diluted earnings per share of $0.77, an increase of 10% compared to $13.8 million (16.7% of revenues) or diluted earnings per share of $0.70 in the fourth quarter of last year.

Cash flow from operations for the fourth quarter of 2025 was $29.4 million.

Full Year 2025 Results

Revenues for 2025 were a record $359.0 million, a 7% increase over the $336.3 million reported in 2024. 74% of revenues were from location-based service subscription fees and 26% were from product revenues.

Revenues from subscription fees were $264.6 million, representing an increase of 9% over 2024.  

Product revenues were $94.5 million, representing an increase of 1% compared with 2024.  

Gross profit for the year was $178.6 million (49.7% of revenues). This represents an increase of 11% compared with gross profit of $160.6 million (47.8% of revenues) in 2024. The gross margin in the year on subscription revenues was 59.0%, compared with 58.7% in 2024. The gross margin on products was 23.8%, compared with 19.5% in 2024, with the variance representative of the product mix sold during the year.  

Operating profit for 2025 was $77.0 million (21.5% of revenues), an increase of 8% compared with operating profit of $71.2 million (21.2% of revenues) in 2024.  

EBITDA for 2025 was $96.2 million (26.8% of revenues), an increase of 5% compared to $91.3 million (27.1% of revenues) in 2024.

Net income in 2025 was $58.0 million (16.1% of revenues) or fully diluted earnings per share of $2.92, an increase of 8% compared with net income of $53.7 million (16.0% of revenues) or fully diluted earnings per share of $2.70 in 2024.  

Cash flow from operations for the year was $88.6 million.

On the balance sheet, as of December 31, 2025, the Company had net cash, including marketable securities, of $107.6 million. This is compared with net cash, including marketable securities, of $77.2 million, as of year-end 2024.

Buy Back

During the quarter $1.6 million in shares were purchased under the existing share buy-back program.

The Board of Directors authorized a new $10 million increase to the share buy-back program. This brings the total authorization, including that remaining, to approximately $13.5 million. Share repurchases will be funded by available cash and will be made in accordance with SEC Rule 10b-18.

Dividend

The Board of Directors declared a total dividend of $30 million for the fourth quarter. This is made up of $10 million under the Company's existing quarterly dividend policy and an additional $20 million as a special dividend.

The current dividend takes into account the Company's continuing strong profitability, ongoing positive cash flow and strong balance sheet.

The Company will also be hosting a video conference call via the Zoom platform later today, Thursday, March 5, 2026 at 9am Eastern Time and 4pm Israel time.

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_hiXNOoC0TmePKQkUTrz0GA

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, but not limited to, changes in global political, economic, business, competitive, market and regulatory factors. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumption that may cause our actual results materially from the expectations that we describe in our forward-looking statements. We disclaim any obligation to update forward-looking statements, even if our assumptions and projections change, except where applicable law may otherwise require us to do so.

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 and control services for vehicles, cargo and personal security for the retail, insurance and financing industries, as well as car manufacturers. Ituran is the largest OEM telematics provider in Latin America. Its products and applications are used by customers in over 20 countries. Ituran is also the founder of the Tel Aviv-based DRIVE startup incubator to promote the development of smart mobility technology.

Ituran's subscriber base has been growing significantly since the Company's inception to over 2.6 million subscribers using its location-based services with a market-leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 employees worldwide, with offices in Israel, Brazil, Argentina, Mexico, Ecuador, Colombia, India, Canada and the United States.

For more information, please visit Ituran's website, at: www.ituran.com

Supplementary information on financing activities not involving cash flows:

In November 2025, the Company declared a dividend in an amount of US$10 million. The dividend was paid in January 2026.

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SOURCE Ituran Location and Control Ltd.