Iveco Group (IVG) Q2 2025 earnings summary

Executive summary

• Q2 2025 was marked by disciplined execution, positive free cash flow, and margin improvements in Bus and Defence, despite lower industry demand and volumes in Truck and Powertrain.

• Announced definitive agreement to sell Defence business (IDV and Astra) to Leonardo S.p.A. for €1.7 billion, with proceeds to be distributed as an extraordinary dividend upon closing, expected by Q1 2026.

• Tata Motors announced a recommended offer to acquire the group (excluding Defence), conditional on Defence separation, with no workforce reductions or headquarters relocation planned.

• Order intake increased year-over-year across all Truck segments and regions, with Bus and Defence maintaining strong momentum and visibility.

• The Fire Fighting business was divested in January 2025 and is now classified as discontinued operations.

Financial highlights

• Q2 2025 consolidated net revenues: €3.78 billion, down 3.5% year-over-year; industrial activities net revenues: €3.7 billion, down 3.1%.

• Group adjusted EBIT: €215 million (5.7% margin); industrial activities adjusted EBIT: €187 million (5.1% margin), both down ~180 bps year-over-year but up sequentially.

• Adjusted net income: €106 million, down from €162 million year-over-year; adjusted diluted EPS: €0.39.

• Free cash flow of industrial activities was €145 million, a €243 million improvement year-over-year.

• Available liquidity stood at €4.7 billion as of June 30, 2025.

Outlook and guidance

• 2025 guidance revised: Group adjusted EBIT now €880–980 million (previously €980–1,030 million); industrial activities net revenues expected down 3–5% year-over-year (previously flat); adjusted EBIT of industrial activities €750–850 million (previously €850–900 million); free cash flow €350–400 million (previously €400–450 million).

• European light-duty truck industry expected down 10–15% for 2025; medium-duty truck forecast lowered; heavy-duty unchanged.

• Persistent macroeconomic uncertainties and delayed recovery in light-duty segment cited as reasons for guidance revision.