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    ITRN
    Earnings call· Jun 2026(Q2 FY26)

    Ituran Location & Control Q2 FY26 earnings call ITRN

    Aug 12, 2026 Source

    Executive summary

    Ituran Q2 FY26 — Record Revenue and Profitability Driven by Strong Subscriber Growth

    Ituran delivered a strong second quarter, achieving record revenue and profitability, primarily fueled by robust growth in its recurring subscription business and healthy subscriber additions. The company continues to expand its OEM programs and explore new growth avenues through big data monetization and new solutions like IturanMob, aiming for long-term transformation and sustained growth.

    Highlights

    5

    • Overall revenue grew 21% year-over-year to a record $104.8 million.

    • Recurring subscription revenue increased 25% year-over-year to $80 million, representing 76% of total revenues.

    • EBITDA increased 24% to $28.5 million, with margin expanding to 27.2%.

    • Net income grew 29% to $17.3 million, resulting in diluted EPS of $0.88.

    • Generated highest ever cash flow from operations of $32.2 million.

    Concerns

    3

    • Net cash position decreased to $103.7 million as of June 30, 2026, from $107.6 million at year-end 2025.

    • Finance expenses of $1.3 million were mainly due to the strengthening of the Israeli shekel against the U.S. dollar, impacting U.S. dollar-linked deposits.

    • FX impact on EBIT was approximately $1 million.

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Israel
    Revenue contribution from Israel.
    		56%———
    Brazil
    Revenue contribution from Brazil.
    		22%———
    Rest of World
    Revenue contribution from Rest of World.
    		22%———

    Operational metrics

    13
    Total revenue growth
    21%YoY
    Q2 FY26

    Overall revenue grew to a record $104.8 million.

    Subscription revenue growth
    25%YoY
    Q2 FY26

    Subscription revenue was $80 million.

    Product revenue growth
    8%YoY
    Q2 FY26

    Product revenue was $25 million.

    EBITDA margin
    27.2%up from 26.4% YoY
    Q2 FY26

    EBITDA was $28.5 million, an increase of 24% YoY.

    Net income margin
    16.5%up from 15.5% YoY
    Q2 FY26

    Net income was $17.3 million, an increase of 29% YoY.

    Total subscribers
    2,711,000
    Q2 FY26

    As of end of June 2026.

    Net new subscribers
    41,000
    Q2 FY26

    Added during the quarter.

    Net cash and marketable securities balance
    $103.7Mdown from $107.6M at year-end 2025
    Q2 FY26

    Includes no debt.

    Dividend per share
    $0.50
    Q2 FY26

    Total dividend declared was $10 million.

    Share buyback executed
    $3M
    Q2 FY26

    Purchased under buyback program.

    Share buyback authorization remaining
    $10M
    Q2 FY26

    Total remaining authorization.

    Finance expenses
    $1.3Min line with Q2 FY25
    Q2 FY26

    Mainly due to strengthening of Israeli shekel against U.S. dollar, impacting U.S. dollar-linked deposits.

    FX impact on EBIT
    $1M
    Q2 FY26

    Almost the same as last quarter, an effect on EBIT.

    Industry KPIs

    3
    MetricValueDetails
    Capital return$10M dividend, $3M buybackUSD
    Recurring software service revenue$80MUSD
    Revenue mix by product customer typeIsrael 56%, Brazil 22%, Rest of World 22%%

    Product announcements

    2
    ProductTypeDetails
    IturanMoblaunch
    Credit Carbonlaunch

    Deals & partnerships

    3
    Stellantis (Fiat)OEM program for Connect Fiat, exclusive to Fiat Strada

    New OEM program launched earlier this year, exclusive to the Fiat Strada model.

    Nissan, Renault, General Motors, Yamaha, BMW and othersExisting OEM relationships

    Actively looking to expand existing OEM relationships.

    Israeli Ministry of TransportationBig data agreement for truck accident analysisfew millions of shekels

    Agreement concluded in Q1 to analyze historical data for identifying accident-prone areas and planning rest stops for trucks.

    Risks & headwinds

    1
    Foreign Exchange ImpactQ2 FY26

    $1.3 million finance expense; ~$1 million impact on EBIT

    What to watch in Q3 FY26

    4

    Big Data Agreement Announcements

    near term
    CurrentAdvanced discussions and pilot projects with potential customers
    TargetAnnouncement of further big data agreement(s)

    Why it matters

    Big data monetization is a key new growth engine with significant long-term potential beyond traditional subscription models.

    We would hope to be able to announce a further big data agreement with one of these in the near term.

    Q&A highlights

    5

    Inquiry about the concluded engagement with the Israeli Ministry of Transportation, feedback received, and where it shows up on the income statement.

    Eyal Sheratzky confirmed the deal concluded in Q1, was not very large (few millions of shekels), and involved analyzing historical data for truck accident prevention and rest area planning. He noted more discussions with public transportation agents and governmental bodies, expressing optimism for larger, more valuable deals soon.

    “This deal transaction was already concluded in the end in Q1, and it was not -- as we said, it was not a very large deal, but still, it was few millions of shekels and it was basically a need of a specific division in this ministry to look for places where trucks in Israel are making specific accidents in order to analyze where is the best place to open a rest areas.”

    asked by Derek Greenberg · answered by Eyal Sheratzky

    2 min read7 chapters

    Detailed Narrative

    01

    Record Financial Performance

    Ituran reported record Q2 FY26 revenue of $104.8 million, a 21% year-over-year increase. This growth was driven by a 25% increase in recurring subscription revenue to $80 million, which now constitutes 76% of total revenues. All profit metrics, including operating income, EBITDA ($28.5 million, 27.2% margin), and net income ($17.3 million, 16.5% margin), grew ahead of revenue, demonstrating strong operating leverage.

    02

    Subscriber Growth and Core Markets

    The company added 41,000 net new subscribers during the quarter, bringing the total subscriber base to 2,711,000. This growth is consistent with expected run rates and reflects healthy organic expansion across core markets, supported by new products and value-added services.

    03

    OEM Partnerships as Growth Driver

    OEM relationships remain a critical growth vector, with continued ramp-up of existing programs in South America, including the new Connect Fiat program with Stellantis. Ituran is actively discussing with additional OEMs and seeking to expand current relationships with major automotive brands like Nissan, Renault, General Motors, Yamaha, and BMW.

    04

    New Growth Initiatives

    Beyond its core telematics, Ituran is advancing initiatives such as IturanMob (car rental solution, recently launched in the U.S.), Credit Carbon (platform for electric vehicle carbon savings), and big data monetization. These initiatives are expected to become meaningful long-term contributors by expanding addressable markets.

    05

    Big Data Monetization Progress

    Following an initial agreement in Q1 with the Israeli Ministry of Transportation for truck accident analysis, Ituran is in advanced discussions and pilot projects with other potential customers for its big data capabilities. The company hopes to announce further big data agreements in the near term, targeting governments, transport authorities, and commercial centers.

    06

    Cash Generation and Capital Returns

    Ituran generated its highest-ever cash flow from operations at $32.2 million. The Board declared a dividend of $10 million ($0.50 per share) for the quarter, consistent with its standard policy. Additionally, $3 million in shares were purchased under the buyback program, with approximately $10 million remaining authorization. The company ended the quarter with $103.7 million in net cash, including marketable securities, and no debt.

    07

    Geographic Performance and FX Impact

    Revenue distribution for the quarter was 56% from Israel, 22% from Brazil, and 22% from the Rest of World. The strengthening of the Israeli shekel against the U.S. dollar resulted in a finance expense of $1.3 million due to U.S. dollar-linked deposits held in Israel, impacting EBIT by approximately $1 million.

    AI-generated summary of the company’s earnings call. Not investment advice.