Ituran Location and Control (NASDAQ:ITRN) executives used the company’s fourth-quarter and full-year 2025 results call to highlight record financial performance, continued subscriber growth, expanding OEM relationships, and a shareholder-return plan that includes a special dividend and a larger share repurchase authorization.
Record quarter and full-year results
CEO Eyal Sheratzky said 2025 was “our best ever and record across all key parameters,” pointing to fourth-quarter revenue growth of 13% to nearly $94 million and subscriber revenue growth of 15%. He added that fourth-quarter EBITDA exceeded $25 million, which he said put the company’s annualized EBITDA run rate above a $100 million milestone for the first time. Sheratzky also cited fourth-quarter cash generation of $29.4 million as the company’s highest ever.
For the full year, Kamer reported record revenue of $359 million, up 7% from $336.3 million in 2024. Subscription fees contributed 74% of revenue and product revenue 26%. Subscription revenue was $264.6 million, up 9% year-over-year, while product revenue was $94.5 million, up 1%. Full-year EBITDA was $96.2 million (26.8% of revenue), an increase of 5%. Net income for 2025 was $58 million, or $2.92 per diluted share, compared with $53.7 million, or $2.70 per diluted share, in 2024. Cash flow from operations for the year was $88.6 million.
Subscriber growth and geographic mix
Management emphasized continued expansion of the subscriber base. Kamer said Ituran ended 2025 with 2,630,000 subscribers, up 42,000 in the fourth quarter and up 221,000 year-over-year. Sheratzky described 2025 as a record year for subscriber growth, noting that first-quarter net adds benefited from new OEM subscribers related to an agreement with Stellantis.
Looking forward, Sheratzky said net adds can vary by quarter but that the company expects to maintain the recent pace, which he described as typically “40,000+ per quarter.” Based on that run rate, he said the company expects 2026 net subscriber additions of 160,000 to 188,000.
On the quarterly revenue mix by geography, Kamer said Israel represented 55% of fourth-quarter revenue, Brazil 23%, and the rest of the world 22%.
OEM momentum and growth initiatives
Sheratzky said 2025 growth and performance were driven by long-term efforts to add new telematics and connected-car products and services, including expanding relationships with OEM partners. He cited Stellantis, Renault, Yamaha, and BMW as examples of OEM partners added during 2025, and said the company was in active discussions with others. He also referenced a new partnership with Fiat that was announced the prior week.
Management also outlined several initiatives intended to support midterm growth. Sheratzky said these efforts “all have the potential to completely transform the company,” while also indicating that near-term financial contributions could be limited.
- IturanMob platform: Sheratzky described IturanMob as a smart-mobility platform for shared mobility, rental fleets, and specialized vehicle applications, enabling remote vehicle access and real-time telematics. He said the platform launched first in Brazil and Israel and has gained traction with fleet operators and rental companies. The company has introduced IturanMob in the U.S. and established dedicated operations there, targeting small and mid-sized rental companies.
- Motorsport partnership: Sheratzky said IturanMob recently partnered with Israel-based motorsport analytics company Griiip, under which IturanMob will serve as Griiip’s official IoT technology provider by combining real-time telemetry with AI-driven analytics for racing drivers. He said the goal is for the partnership to connect thousands of new vehicles in 2026, and noted that the complexity of the technology can support higher ARPU for that service type.
- Credit Carbon: Sheratzky described Credit Carbon as an initiative to allow drivers of EVs and other zero-emission vehicles to generate and monetize verified carbon savings—an approach he said has not previously been accessible to individual drivers at scale. He said the solution is undergoing testing and validation and is expected to see initial commercial deployment toward year-end 2026.
- Big data monetization: Sheratzky said Ituran has built a large telematics dataset over decades and is exploring ways to monetize anonymized, aggregated insights for uses such as traffic planning and road safety, as well as to support OEMs’ driver-assistance and autonomous-driving development.
Q&A: ARPU, new-product economics, and Brazil motorcycles
Asked about ARPU and EBITDA dynamics in 2026, Sheratzky said the company does not provide guidance. He said ARPU should generally “continue” at current levels given the size of the subscriber base, and he did not expect ARPU to decline, citing ongoing upsell opportunities for existing subscribers (including fleet management, stolen vehicle recovery, and usage-based insurance). On the new initiatives, he said commercial readiness is expected by mid to late 2026, but that the financial contribution in 2026 would be “very low,” with most contribution expected in later years such as 2027 and 2028. On margins, he said he believes operating leverage trends will continue and that new services should support EBITDA margins over time.
In response to a question about motorcycles in Brazil, Sheratzky said the segment is large and that Ituran began addressing it about a year ago after developing a suitable device. He referenced prior disclosures of two OEM deals in Brazil—Yamaha and BMW—and said the company expects to begin adding “thousands of motorcycles or maybe even closer to 10,000 subscribers” from that segment in 2026. He also said the company is expanding to the retail market and expects to add additional motorcycle producers over this year and next.
When asked for more detail on economics for Credit Carbon and big data, Sheratzky again declined to provide guidance, describing the initiatives as akin to “new startups” within the business. He gave examples of potential Credit Carbon value propositions, including scenarios where drivers or operators could earn additional income, but emphasized the need for regulatory approvals and noted the solution is not yet commercialized. On big data, he said the company has begun selling data in Israel primarily to government-related entities, citing pilots priced at “few hundreds of thousand” dollars, while reiterating that management does not expect a major 2026 contribution.
Deputy CEO and VP Finance Udi Mizrahi addressed foreign exchange, saying it is difficult to forecast for 2026 and estimating that in 2025 the FX impact on EBIT was about $1 million to $1.5 million on an annual basis.
Capital return: special dividend and expanded buyback
Management highlighted a substantial shareholder-return plan supported by cash generation and a debt-free balance sheet. Sheratzky said the company ended 2025 with “well over $100 million in cash and no debt” and that the board declared a total dividend of $30 million for the fourth quarter, consisting of the regular $10 million quarterly dividend plus a $20 million special dividend. He said total dividends for the year were $60 million, representing approximately 100% of net income, and cited an implied dividend yield of around 7% based on the year-end share price.
Kamer said net cash and marketable securities totaled $107.6 million at Dec. 31, 2025, up from $77.2 million a year earlier. He also said the company purchased $1.6 million in shares during the quarter, and that $3.5 million remained under the prior authorization at year-end. The board approved a $10 million increase to the buyback authorization, bringing total remaining capacity to $13.5 million, to be executed in accordance with SEC Rule 10b-18.
In the Q&A, Sheratzky responded to a question about why the company does not emphasize buybacks more by pointing to low trading volume and the need to balance dividend and repurchase decisions, adding that the board reviews the approach regularly and considers input from advisors.
About Ituran Location and Control (NASDAQ:ITRN)
Ituran Location and Control Ltd. is a provider of wireless vehicle tracking and stolen vehicle recovery services. The company leverages a combination of cellular and global positioning system (GPS) technologies to offer real-time monitoring and location-based solutions for private vehicle owners, fleet operators and insurance companies. Its core offerings include subscription-based tracking devices, centralized control centers and software platforms that enable clients to detect unauthorized vehicle use, dispatch recovery teams and manage fleet logistics.
Founded in 1994 in Israel, Ituran pioneered the use of wireless communications for security and telematics applications.
