Iveco Group (IVG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered solid performance, with positive pricing and cost management offsetting lower volumes; adjusted EBIT margin for industrial activities was 5% and free cash flow improved by €56 million year-over-year.

• New Model Year 2024 truck and van lineups launched, with strong customer feedback and order books for buses covering production into 2026.

• Bus and Defence segments saw robust growth, with Defence securing major contracts and partnerships, and Bus ramping up electric city bus deliveries.

• The Fire Fighting business was classified as discontinued operations, with sale completion expected by January 2025 and a €115 million loss recognized.

• Financial Services segment showed strong growth, with net revenues up 22.2% and improved receivables performance.

Financial highlights

• Q3 2024 consolidated net revenues were €3.4 billion, down 7.1% year-over-year; industrial activities net revenues at €3.35 billion, down 7.4%.

• Adjusted EBIT for Q3 was €206 million (6% margin); industrial activities adjusted EBIT at €167 million (5% margin); adjusted net income was €106 million, with adjusted diluted EPS of €0.39, up €0.07 year-over-year.

• Free cash flow of industrial activities improved by €56 million year-over-year to -€286 million; available liquidity at €4.4 billion as of September 30, 2024, with €1.9 billion undrawn committed facilities.

• For the nine months ended September 30, 2024, net revenues were €10.5 billion, down 4.6% year-over-year; adjusted EBIT at €632 million, up 3.1%.

• Financial Services managed portfolio at €7.6 billion, with return on assets at 2.2% and past-due receivables at a historical low of 1.9%.

Outlook and guidance

• Full-year 2024 guidance confirmed: group adjusted EBIT €920–970 million, industrial activities net revenues down ~4%, adjusted EBIT €790–840 million, free cash flow €350–400 million, investments around €1 billion.

• Q4 2024 expected to be down year-over-year for both light- and heavy-duty trucks in Europe; preliminary 2025 forecasts indicate stabilization or slight declines in truck volumes.

• Efficiency program to accelerate in 2025, reprioritizing investments and reducing CapEx/OpEx without impacting product plans.