Iveco Group (IVG) Q3 2025 earnings summary

Executive summary

• Q3 2025 results exclude Defense and Firefighting businesses, both classified as discontinued operations following announced divestitures.

• Truck segment faced challenging European demand, especially in LCV Chassis Cab, with strict pricing and inventory discipline maintained; deliveries declined year-over-year.

• Powertrain showed first signs of recovery in engine volumes, supporting profitability.

• Bus segment saw strong market share gains, especially in intercity, with a robust order book supporting long-term visibility, though profitability was impacted by ramp-up costs in France.

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

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 continuing operations was €40 million, down €54 million year-over-year; adjusted diluted EPS at €0.15.

• Free cash flow absorption was negative €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 (previously €880–980 million); industrial activities adjusted EBIT at €700–750 million.

• Net revenues expected to decline 3–6% year-over-year.

• Industrial free cash flow forecast at €250–350 million.

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