Iveco Group (IVG) Q1 2025 earnings summary

Executive summary

• Q1 2025 was marked by a decisive response to lower European truck demand, with production down 32% year-over-year and revenues impacted by lower volumes and adverse FX, but full-year guidance was reaffirmed.

• Strategic actions included inventory realignment, phase-out of old models, launch of new LCVs, and major partnerships with Ford Otosan, Stellantis, and DLL to enhance competitiveness.

• The Board approved the spin-off of the Defence business, with ongoing interest from strategic buyers.

• Major Defence contract awarded by the Dutch Ministry of Defence for 785 vehicles, with an option for 785 more.

• Bus business won innovation awards and increased market share in electric city buses.

Financial highlights

• Consolidated net revenues were €3.03 billion, down 10.1% year-over-year, with adjusted EBIT at €152 million (5.0% margin), both reflecting lower volumes and FX headwinds.

• Adjusted net income was €84 million, with adjusted EPS of €0.31, both down year-over-year.

• Free cash flow of Industrial Activities was negative €794 million, mainly due to lower sales volumes and working capital absorption.

• Available liquidity at quarter-end was €4.7 billion, including €1.9 billion undrawn committed facilities.

• Net cash (Industrial Activities) was €1.1 billion at March 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: group adjusted EBIT €980–1,030 million; industrial activities net revenues flat year-over-year; industrial activities EBIT €850–900 million; industrial free cash flow €400–450 million.

• Industry outlook: European LCV and M&H truck markets expected flat to down 5%, South America up 10%.

• H2 2025 expected to be stronger, with gradual improvement from Q2 and robust order intake supporting recovery.