Ituran Location and Control Q2 2025 Earnings Miss Expectations

Ituran Location and Control reported Q2 2025 revenue of $86.8m, up 2.3% YoY, and net income of $13.5m, up 2.5% YoY. EPS increased to $0.68 from $0.66 in Q2 2024. However, revenue and EPS missed analyst estimates by 2.7% and 3.2%, respectively. The company's shares are down 15% from last week, and there is one warning sign investors should be aware of.

Ituran Location and Control (NASDAQ: ITRN) reported its Q2 2025 earnings on August 19, 2025, with revenue reaching $86.8 million, up 2.3% year-over-year (YoY), and net income of $13.5 million, an increase of 2.5% YoY. The company's earnings per share (EPS) increased to $0.68 from $0.66 in Q2 2024. However, revenue and EPS missed analyst estimates by 2.7% and 3.2%, respectively. The company's shares are down 15% from last week, and there is one warning sign investors should be aware of.

The company's resilience in subscriber growth, even during significant geopolitical disruptions, underscores the defensive qualities of its subscription-based business model. Ituran achieved a net addition of 40,000 subscribers, bringing the total to 2,548,000, despite a temporary market shutdown due to regional conflict [1].

Ituran's strategic partnership with BMW Motorrad in Brazil aims to capture the high-growth Latin American motorcycle telematics market. This partnership follows the successful traction of new motorcycle product offerings in the region and is expected to accelerate penetration in the under-tapped motorcycle segment [1].

The company's dividend policy and cash generation signal sustained shareholder returns. The board approved a $10 million quarterly dividend, marking a 25% increase from the $8 million baseline established in 2024. The company reported $88.7 million in net cash and marketable securities as of June 30, 2025, up from $77.3 million at year-end 2024 [1].

Looking ahead, management reaffirmed 2025 net subscriber growth expectations of 220,000 to 240,000, supported by product launches and geographic expansion, particularly in the motorcycle segment. Future revenue growth remains subject to local currency fluctuations given the company's global exposure [1].

Analysts expect the company to report an EPS of $0.73, representing a 10.6% YoY increase, and a revenue of $89.17 million, up by 5.0% YoY. Over the past two years, Ituran has consistently exceeded EPS estimates, with an average surprise of 10.4% [2].

References:
[1] https://www.nasdaq.com/articles/ituran-reports-record-q2-revenue
[2] https://www.ainvest.com/news/ituran-location-q2-2025-earnings-preview-revenue-expected-rise-5-eps-increase-10-6-2508