ITURAN PRESENTS FOURTH QUARTER & FULL YEAR 2024 RESULTS

Rhea-AI Summary

Ituran Location and Control (NASDAQ: ITRN) reported strong financial results for Q4 and full year 2024. The company reached 2.409 million subscribers by year-end, adding 157,000 net subscribers during 2024.

Full year 2024 highlights include record revenue of $336.3 million (up 5% YoY), net income of $53.7 million (up 11%), and EBITDA of $91.3 million (up 5%). Q4 2024 showed revenue of $82.9 million (up 7% YoY), net income of $13.8 million (up 15%), and EBITDA of $22.5 million (up 3%).

The company announced two significant updates: increased subscriber growth expectations for 2025 to 180,000-200,000 net adds, and a 25% increase in quarterly dividend policy to $10 million ($0.50 per share). The company maintains a strong financial position with $77.4 million in cash and marketable securities.

Positive

• Record revenue of $336.3M in 2024, up 5% YoY
• Net income increased 11% to $53.7M in 2024
• Strong Q4 margins: 59.6% subscription gross margin
• Healthy cash position of $77.4M with minimal debt
• 25% increase in quarterly dividend to $10M
• 157,000 net subscriber additions in 2024
• Product revenues up 16% YoY in Q4

Negative

• Currency devaluations negatively impacted reported financial results
• Product gross margin declined to 20.8% in Q4 2024 from 22.1% in Q4 2023
• Annual product gross margin decreased to 19.5% from 20.3% in 2023

Insights

Financial Analyst

Ituran's Q4 and full-year 2024 results demonstrate robust operational momentum with impressive underlying growth masked somewhat by currency headwinds. The company's subscription-based business model continues to shine with subscription revenues comprising 74% of total revenue and carrying healthy 59.6% gross margins - up from 57.8% in Q4 2023, indicating improved operational efficiency and economies of scale.

The acceleration in projected subscriber growth for 2025 (180,000-200,000 net adds vs. 157,000 in 2024) suggests the company's investments in new products and advanced services are gaining market traction. This subscriber growth trajectory would put Ituran on track to surpass 2.6 million subscribers by end of 2025, creating a significantly larger recurring revenue base.

Currency devaluations have substantially masked Ituran's true performance. In local currency terms, Q4 revenue grew 11% (vs. 7% reported), operating income jumped 16% (vs. 9% reported), and net income surged 22% (vs. 15% reported). This indicates the core business is performing significantly better than USD-denominated figures suggest.

The 25% dividend increase to $10 million quarterly ($0.50 per share) signals strong management confidence in sustainable cash generation. With $77.4 million in cash against minimal debt, Ituran maintains substantial financial flexibility for potential acquisitions or accelerated R&D investments while still returning capital to shareholders.

The company's operating leverage is evident in profitability metrics outpacing revenue growth - Q4 net income grew 15% on 7% revenue growth. This efficiency combined with strong cash flow generation ($74.3 million for 2024) creates a virtuous cycle allowing for both increased shareholder returns and continued innovation investments.

Ituran's geographical diversification across Israel and South America provides market expansion opportunities, though currency volatility remains a persistent translation challenge. The company's continued expansion of telematics and location-based services positions it well within the growing connected vehicle and fleet management markets.

Increases net subscriber-add expectations for 2025 significantly to 180-200,000, expecting to reach 2.6 million subscribers by year-end;

 Increases dividend policy by 25% to $10 million per quarter; 

AZOUR, Israel, Feb. 26, 2025 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the fourth quarter 2024.

Highlights of Full Year 2024

• 2,409,000 subscribers at year-end, adding 157,000, net, during the year at the high end of the guidance range.
• Record financial metrics across the board with revenue at $336.3 million, an increase of 5% year-over-year.
• Net income of $53.7 million, an increase of 11% year-over-year.
• EBITDA of $91.3 million, an increase of 5% year-over-year.
• Generated $74.3 million in operating cash flow.
• Year-end net cash position and marketable securities of $77.4 million.
• Returns to shareholders: declared a total of $34.0 million in dividends for the year 2024. 

Highlights of the Fourth Quarter of 2024

• Added a net 40,000 subscribers in the quarter.
• Revenue of $82.9 million, an increase of 7% year-over-year.
• Strong gross margins: overall gross margin of 49.6%, with subscription gross margin at 59.6%.
• Net income increased to $13.8 million, up by 15% year-over-year.
• EBITDA grew to $22.5 million, a 3% increase year-over-year.
• Strong operating cash flow of $22.7 million.
• The Board declared a 25% increase to the dividend policy to $10 million, or $0.50 per share per quarter, from $8 million in the recent prior quarters.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "2024 was a strong year for Ituran marked by solid growth and operational improvements. Furthermore, our results were even better in local currency terms, though significant currency devaluations versus the dollar in the past year negatively impacted our reported financial results. We continue to add new subscribers across all our geographies at a high rate adding 157,000 subscribers in the year, at the upper end of our expected range.  Ituran continues to develop new products and services built on the latest technologies, leveraging cross-business synergies between the various parts of our business and offering our subscriber base an ever-broadening mix of value-adding products and services."

Mr. Sheratzky continued, "Looking ahead to 2025, we expect to accelerate the growth in subscriber-adds, due to the investments in new products and advanced services that we have made in recent years. Our new expectations for net subscriber-adds are to jump to between 180,000-200,000 for the full year 2025. Our business remains fundamentally strong and is expanding across both our traditional regions in South America and Israel. We see strong and increasing demand for our broad location-based products and telematic services and look forward to another year of growth and strong profitability."

Fourth Quarter 2024 Results

Revenues for the fourth quarter of 2024 were $82.9 million, a 7% increase compared with revenues of $77.8 million in the fourth quarter of 2023.

It is noted that the strengthening of the US dollar in the fourth quarter versus the various local currencies in which the Company operates impacted the revenues when translated into US dollars. In local currencies, revenues grew by 11% year-over-year.

74% of revenues were from location-based service subscription fees, and 26% were from product revenues.

Revenues from subscription fees were $61.5 million, an increase of 4% over the fourth quarter of 2023 revenues. In local currencies, subscription revenues grew by 9% year-over-year.

The subscriber base expanded to 2,409,000 by the end of December 2024, marking an increase of 40,000 from the previous quarter.

Product revenues were $21.3 million, an increase of 16% year-over-year. In local currencies, product revenue grew at more or less the same level at 16% year-over-year.

Gross profit for the quarter was $41.1 million (49.6% of revenues), a 7% increase compared with gross profit of $38.4 million (49.4% of revenues) in the fourth quarter of last year. In local currencies, gross profit grew by 10% year-over-year.

The gross margin in the quarter on subscription revenues improved strongly to 59.6%, compared to 57.8% in the fourth quarter of last year. The gross margin on products was 20.8% in the quarter, compared with 22.1% in the fourth quarter of last year. The variance in the product gross margin products between quarters was due to the change in the product mix sold.

Operating income for the quarter was $18.0 million (21.8% of revenues), representing a 9% increase compared to $16.5 million (21.2% of revenues) in the fourth quarter of last year. In local currencies, operating income grew 16% year-over-year.

EBITDA for the quarter was $22.5 million (27.2% of revenues), an increase of 3% compared with EBITDA of $21.9 million (28.2% of revenues) in the fourth quarter of last year. In local currencies, EBITDA grew 10% year-over-year.

Net income for the fourth quarter of 2024 was $13.8 million (16.7% of revenues) or diluted earnings per share of $0.70, an increase of 15% compared to $12.0 million (15.4% of revenues) or diluted earnings per share of $0.60 in the fourth quarter of last year. In local currencies, net income grew 22% year-over-year.

Cash flow from operations for the fourth quarter of 2024 was $22.7 million.

Full Year 2024 Results

Revenues for 2024 were a record $336.3 million, a 5% increase over the $320.0 million reported in 2023. 72% of revenues were from location-based service subscription fees and 28% were from product revenues. In local currencies, revenues grew by 8% year-over-year.

Revenues from subscription fees were $242.5 million, representing an increase of 3% over 2023. In local currencies, subscription revenues grew by 7% year-over-year.

Product revenues were $93.8 million, representing an increase of 10% compared with 2023. In local currencies, product revenues grew by more or less the same at 10% year-over-year.

Gross profit for the year was $160.6 million (47.8% of revenues). This represents an increase of 5% compared with gross profit of $153.2 million (47.9% of revenues) in 2023. The gross margin in the year on subscription revenues was 58.7%, compared with 57.9% in 2023. The gross margin on products was 19.5%, compared with 20.3% in 2023, with the variance representative of the product mix sold during the year. In local currencies, gross profit grew by 7% year-over-year.

Operating profit for 2024 was $71.2 million (21.2% of revenues), an increase of 8% compared with operating profit of $66.0 million (20.6% of revenues) in 2023. In local currencies, operating profit grew by 12% year-over-year.

EBITDA for 2024 was $91.3 million (27.1% of revenues), an increase of 5% compared to $87.0 million (27.2% of revenues) in 2023. In local currencies, EBITDA grew by 8% year-over-year.

Net income in 2024 was $53.7 million (16.0% of revenues) or fully diluted earnings per share of $2.70, an increase of 11% compared with net income of $48.1 million (15.0% of revenues) or fully diluted earnings per share of $2.41 in 2023. In local currencies, net income grew by 15% year-over-year.

Cash flow from operations for the year was $74.3 million.

On the balance sheet, as of December 31, 2024, the Company had cash, including marketable securities, of $77.4 million and debt of $0.1 million, amounting to a net cash position of $77.3 million. This is compared with cash, including marketable securities, of $53.6 million and debt of $0.6 million, amounting to a net cash position of $53.0 million, as of year-end 2023.

Dividend

The Board of Directors decided to increase the dividend policy for the current quarter and the quarters ahead. A dividend of $10 million was declared for the quarter and upcoming quarters, representing a 25% increase over the dividend issued in the prior quarters.

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

Conference Call Information

The Company will also be hosting a video conference call via the Zoom platform later today, Wednesday, February 26, 2025 at 10am Eastern Time and 5pm 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_1tfL4B6_QHa5_xl7EKVDCA

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 changes in global political, economic, business, competitive, market and regulatory factors, as well as factors related to the global COVID-19 pandemic.

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 & control services for vehicles, cargo and personal security for the retail, insurance, financing industries and 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 2.4 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, Columbia, India, Canada and the United States.

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

Company Contact Udi Mizrahi udi_m@ituran.com  Deputy CEO & VP Finance, Ituran (Israel) +972 3 557 1348

International Investor Relations Ehud Helft ituran@ekgir.com  EK Global  Investor Relations (US) +1 212 378 8040

 

 

ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
			US dollars
			December 31,
(In thousands)			2024		2023
Current assets
Cash and cash equivalents			77,357		53,434
Investments in marketable securities			10		119
Accounts receivable (net of allowance for doubtful accounts)			47,688		45,390
Other current assets			48,620		52,724
Inventories			23,434		26,872
			197,109		178,539
Long-term investments and other assets
Investments in affiliated companies			519		714
Investments in other companies			1,491		2,213
Other non-current assets			3,300		3,989
Deferred income taxes			12,273		14,452
Funds in respect of employee rights upon retirement			21,823		18,525
			39,406		39,893
Property and equipment, net			33,080		41,955
Operating lease right-of-use assets, net			8,947		8,071
Intangible assets, net			9,011		10,830
Goodwill			39,325		39,400
Total assets			326,878		318,688
ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)
			US dollars
			December 31,
(In thousands)			2024		2023
Current liabilities
Credit from banking institutions			114		355
Accounts payable			18,847		20,842
Deferred revenues			22,857		27,117
Other current liabilities			45,904		44,150
			87,722		92,464
Long-term liabilities
Loan from bank institution			-		237
Liability for employee rights upon retirement			27,593		24,562
Deferred income taxes			418		1,116
Deferred revenues			12,231		13,259
Operating lease liabilities, non-current			5,562		4,774
Other non-current liabilities			2,095		2,027
			47,899		45,975
Stockholders' equity			185,227		174,454
Non-controlling interests			6,030		5,795
Total equity			191,257		180,249
Total liabilities and equity			326,878		318,688

 

 

ITURAN LOCATION AND CONTROL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		US dollars
		Year ended December 31,				Three months period ended December 31,
(in thousands, except per share data)		2024		2023		2024		2023
Revenues: Telematics services						(unaudited)
		242,491		234,541		61,548		59,426
Telematics products		93,766		85,437		21,335		18,382
		336,257		319,978		82,883		77,808
Cost of revenues: Telematics services		100,195		98,707		24,875		25,080
Telematics products		75,442		68,110		16,892		14,328
		175,637		166,817		41,767		39,408
Gross profit		160,620		153,161		41,116		38,400
Research and development expenses		18,090		16,986		4,483		4,240
Selling and marketing expenses		15,271		13,643		3,980		3,535
General and administrative expenses		56,238		56,635		14,667		14,305
Other income, net		(148)		(58)		(49)		(185)
Operating income		71,169		65,955		18,035		16,505
Other income, net		-		2		-		5
Financing income (expenses), net		80		(1,552)		(85)		(1,653)
Income before income tax		71,249		64,405		17,950		14,857
Income tax expenses		(14,579)		(13,355)		(3,345)		(2,534)
Share in profit (losses) of affiliated companies, net		(123)		(706)		178		116
Net income for the period		56,547		50,344		14,783		12,439
Less: net income attributable to non-controlling interest		(2,893)		(2,207)		(945)		(420)
Net income attributable to the Company		53,654		48,137		13,838		12,019
Basic and diluted earnings per share attributable to  Company's shareholders		2.70		2.41		0.70		0.60
Basic and diluted weighted average number of shares  outstanding (in thousands)		19,894		20,000		19,894		19,894

 

 

ITURAN LOCATION AND CONTROL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
						US dollars
						Year ended December 31,				Three months period ended December 31,
(in thousands)						2024		2023		2024			2023
										(unaudited)
Cash flows from operating activities
Net income for the period						56,547		50,344		14,783			12,439
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization						20,083		21,068		4,497			5,407
Loss in respect of marketable securities and other investments						107		89		22			32
Increase in liability for employee rights upon retirement						3,199		2,507		954			226
Share in losses (profit) of affiliated companies, net						123		706		(178)			(116)
Deferred income taxes						(383)		(3,125)		958			(1,430)
Capital loss on sale of property and equipment, net						128		89		114			54
Decrease (increase) in accounts receivable						(5,227)		(26)		(435)			1,769
Decrease (increase) in other current and non-current assets						(6,498)		(3,169)		(1,170)			940
Decrease in inventories						3,366		1,102		776			201
Increase (decrease) in accounts payable						176		(1,863)		2,558			1,090
Increase (decrease) in deferred revenues						(804)		5,703		(990)			935
Increase in other current and non-current liabilities						3,450		3,793		803			232
Net cash provided by operating activities						74,267		77,218		22,692			21,779
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals						(3,353)		(2,384)		(1,016)			(451)
Capital expenditures						(13,632)		(14,243)		(4,488)			(4,050)
Return from (investments in) affiliated and other companies, net						708		(800)		710			(244)
Return from (investments in) long-term deposit						(122)		(100)		(41)			40
Sale of marketable securities						-		99		-			-
Proceeds from sale of property and equipment						459		199		70			55
Net cash used in investment activities						(15,940)		(17,229)		(4,765)			(4,650)
Cash flows from financing activities
Repayment of long-term loan						-		(11,732)		-			(244)
Short term credit from banking institutions, net						(433)		299		(49)			(1,187)
Dividend paid						(28,050)		(11,561)		(7,759)			(2,943)
Dividend paid to non-controlling interests						(3,286)		(3,327)		(25)			-
Acquisition of company shares						-		(6,613)		-			-
Net cash used in financing activities						(31,769)		(32,934)		(7,833)			(4,374)
Effect of exchange rate changes on cash and cash equivalents						(2,635)		(1,471)		(202)			800
Net change in cash and cash equivalents						23,923		25,584		9,892			13,555
Balance of cash and cash equivalents at beginning of period						53,434		27,850		67,465			39,879
Balance of cash and cash equivalents at end of period						77,357		53,434		77,357			53,434

 

Supplementary information on financing activities not involving cash flows:

In November 2024, the Company declared a dividend in an amount of US$ 8 million. The dividend was paid in January 2025.

Logo - https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg

 

 

View original content:https://www.prnewswire.com/news-releases/ituran-presents-fourth-quarter--full-year-2024-results-302385957.html

SOURCE Ituran Location and Control Ltd.

FAQ

What is Ituran's new subscriber growth target for 2025?

Ituran expects to add 180,000-200,000 net subscribers in 2025, aiming to reach 2.6 million subscribers by year-end.

How much did ITRN increase its dividend payment in Q4 2024?

Ituran increased its quarterly dividend by 25% to $10 million ($0.50 per share), up from $8 million in previous quarters.

What was Ituran's subscriber growth in 2024?

Ituran added 157,000 net subscribers in 2024, reaching 2.409 million total subscribers by year-end.

How did ITRN's Q4 2024 financial results compare to Q4 2023?

Q4 2024 revenue grew 7% to $82.9 million, net income increased 15% to $13.8 million, and EBITDA rose 3% to $22.5 million compared to Q4 2023.

What is Ituran's current cash position as of Q4 2024?

Ituran reported $77.4 million in cash and marketable securities with minimal debt of $0.1 million, resulting in a net cash position of $77.3 million.