Iveco Group (IVG) Q2 2024 earnings summary

Executive summary

• Achieved stable profitability in Q2 2024 with consolidated revenues of €3.9 billion, a 5% year-over-year decline, and adjusted EBIT margin of 7.5%, supported by positive pricing and cost control.

• Adjusted net income rose to €182 million, with adjusted diluted EPS at €0.63; order backlog remains robust across Truck, Bus, and Defence segments.

• Model Year 2024 truck rollout and major production changeover were key operational focuses, with expectations for delivery momentum in H2 2024 and into 2025.

• No unusual order cancellations or net price erosion observed; pricing discipline maintained during model transition.

• Fire Fighting business classified as discontinued operations, with a €115 million loss recognized in Q1 2024; sale expected by January 2025.

Financial highlights

• Q2 2024 consolidated net revenues: €3.9 billion, down 5% year-over-year; industrial activities net revenues: €3.8 billion, down 5.8%, mainly due to lower volumes in Europe and adverse FX.

• Adjusted EBIT: €295 million (margin 7.5%, flat YoY); industrial activities adjusted EBIT: €264 million (margin 6.9%, up 10 bps YoY).

• Adjusted net income: €182 million; adjusted diluted EPS: €0.63 (up €0.02 YoY).

• Free cash flow from industrial activities: -€98 million in Q2, mainly due to temporary working capital absorption for Model Year 2024 launch.

• Available liquidity: €4.2 billion as of June 30, 2024.

Outlook and guidance

• 2024 guidance confirmed: consolidated adjusted EBIT €920–970 million; industrial activities net revenues ~4% below FY 2023; industrial adjusted EBIT €790–840 million; free cash flow €350–400 million; investments ~€1 billion.

• Profitability improvement expected in Powertrain, Bus, and Defence; Truck to leverage Model Year 2024 and light commercial vehicles to offset heavy-duty market slowdown.

• Guidance excludes Fire Fighting business; escalation of macroeconomic, geopolitical, or supply chain issues could materially impact results.