Ituran Location & Control Ltd. Q4 FY2025 earnings call

Eyal Sheratzky mentioned that 2025 was the most successful year in the company's history with best ever results across key parameters. Revenue growth was 13% in fourth quarter to almost $94 million, EBITDA grew to over $25 million, and cash generated in quarter was $29.4 million. Growth driven by long-term efforts in bringing new telematics and connected car products/services globally. Added new OEM partners like Stellantis, Renault, Yamaha, BMW in 2025. IturanMob smart-mobility platform launched in Brazil, Israel, and recently in U.S. Credit Carbon initiative to enable EV drivers to participate in low carbon transition. Big data capabilities leveraging large vehicle telematics dataset for various uses. Board declared $30 million dividend for fourth quarter including regular $10 million and $20 million special dividend, and increased buyback authorization by $10 million.

For the fourth quarter, overall revenue was $93.5 million, up 13% year-over-year. Subscription revenues were $71.1 million, up 15% and represented 76% of total revenues. Product revenues were $22.4 million, up 5% year-over-year. Geographic breakdown of fourth quarter revenues: Israel 55%, Brazil 23%, rest of world 22%. For full year 2025, revenues were a record $359 million, up 7% from 2024. 74% of revenues were from location-based services subscription fees and 26% from product revenues. Subscription fees revenues were $264.6 million, up 9% from 2024. Product revenues were $94.5 million, up 1% from 2024. Subscriber base reached 2,630,000 at end of 2025, up 42,000 in fourth quarter and 221,000 year-over-year. Full year 2025 EBITDA was $96.2 million, 26.8% of revenues, up 5% year-over-year. Net income in 2025 was $58 million, 16.1% of revenues, or fully diluted earnings per share of $2.92, up 8% from 2024.

Expect to maintain current net subscriber add run rate, so for 2026, expect to add between 160,000–188,000 net during the year. New initiatives like Credit Carbon and big data have potential for long-term growth but financial contribution in 2026 will be low. No specific guidance on ARPU and EBITDA dynamics beyond general statements about ARPU not going down and margins leveraging from new initiatives.

Geopolitical situation with war between Israel and Iran could potentially have some influence on operations in Israel, but Eyal Sheratzky expects no major influence on 2026 results, only possible month-to-month volatility.

Q: Could you add some color on ARPU and the EBITDA dynamics in 2026 and after initiatives are fully deployed?

A: Not providing guidance, but ARPU should continue as current subscriber base is large, and new initiatives will leverage EBITDA margins.

Q: How is the motorcycle market in Brazil going and did you gain additional market share?

A: Market in Brazil is big, started developing devices for motorcycles a year ago, gained OEM deals with Yamaha Brazil, BMW Brazil, expect to add more motorcycle producers and see thousands of subscribers from this segment in 2026.

Q: Walk through economics for new big data and Credit Carbon products?

A: Credit Carbon and big data initiatives are in development, no specific guidance on deal sizing or economics yet as they are not fully commercialized.

Q: FX impact in 2025 and expectations for 2026?

A: FX impact on EBIT in 2025 was about $1 million to $1.5 million, hard to say about 2026 due to changing parameters.

Q: Any potential disruptions to business from geopolitics?

A: Major part of business not influenced by Middle East situation, operations in Israel currently not seeing major damage, expect no major influence on 2026 results.

Q: Tease out more on big data initiative?

A: Big data used in Israel for governmental entities like road authorities, commercial malls, car dealers, with potential for larger deals.

Q: Why not emphasize stock repurchase more vs dividends?

A: Balance between dividend and share repurchase, considering volume and other factors, current decision of board is to balance.

Q: Competition in Brazil and Israel?

A: In Israel, keep gaining market share with strong competition, in Brazil also gaining market share, largest provider in telematics business.

Q: Effort on fleet business to match competitors?

A: Focus on Israel and Latin America markets, technology is state-of-the-art, will consider acquisition for other geographies if decided.