Iveco Group (IVG) Q3 2025 earnings summary

Executive summary

• Q3 2025 was marked by operational discipline, cost management, and efficiency initiatives, with additional savings identified for the full year amid ongoing market headwinds and divestitures.

• European truck demand, especially in LCV/Chassis Cab, remained weak, impacting profitability, while engine volumes showed initial recovery and the Bus segment maintained a strong order book.

• Sale of Defence business to Leonardo and Tata Motors tender offer are progressing, with Defence classified as discontinued operations and completion expected by March 2026.

• Net revenues for the nine months ended 30 September 2025 were €9,428 million, down 7.3% year-over-year, mainly due to lower Truck and Powertrain volumes and adverse FX.

• Net profit from continuing operations was €109 million, a significant decrease from €375 million in the prior year period, primarily due to lower volumes and higher product costs.

Financial highlights

• Q3 2025 consolidated net revenues were €3.1 billion, down 3.6% year-over-year; industrial activities net revenues at €3 billion, down 3%.

• Adjusted EBIT was €111 million (3.6% margin), with industrial activities at €76 million (2.5% margin), both down 210 bps year-over-year.

• Adjusted net income for Q3 2025 was €40 million, with adjusted diluted EPS at €0.15, both down year-over-year.

• Free cash flow absorption was €513 million, broadly in line with last year after adjusting for inventory effects.

• Available liquidity at quarter-end was €4 billion, including €1.9 billion in undrawn committed facilities.

Outlook and guidance

• Full-year 2025 guidance revised: group adjusted EBIT (including Defence) at €830–880 million; industrial activities net revenues expected down 3–5% year-over-year.

• Adjusted EBIT for industrial activities forecast at €700–750 million; industrial free cash flow at €250–350 million.

• Excluding Defence, net revenues expected between €6.8–7.3 billion, adjusted EBIT €250–350 million.

• Q4 2025 profitability expected to increase year-over-year across all business units, driven by sold-out LCV and truck volumes, higher bus volumes, and continued efficiency gains.

• 2025 industry volume outlook expects LCVs in Europe down 15%, South America down 10%, and Rest of World up 10%.