Iveco Group (IVG) Q4 2024 earnings summary

Executive summary

• FY 2024 delivered solid profitability, with positive price realization and cost management offsetting lower volumes in Truck and Powertrain units; Board recommends a €0.33/share dividend (~€90 million) and is considering a 2025 Defence business spin-off to enhance strategic focus.

• Adjusted EBIT reached €982 million (up €11 million year-over-year), and adjusted net income was €569 million (up €181 million), despite lower consolidated revenues.

• Free cash flow of Industrial Activities was €402 million, at the upper end of guidance.

• The Fire Fighting business was divested, classified as discontinued operations, with a €145 million loss impacting reported net income.

• New Model Year 2024 truck lineup rolled out successfully, with strong client feedback and order momentum in Heavy segment.

Financial highlights

• Consolidated net revenues for 2024 were €15.3 billion (down 4% year-over-year); Industrial Activities at €14.9 billion; adjusted EBIT margin up 30 bps to 6.4%.

• Group adjusted EBIT was €982 million; Industrial Activities adjusted EBIT was €851 million (5.7% margin), both up 30 bps.

• Adjusted net income totaled €569 million, up €181 million year-over-year; adjusted diluted EPS was €2.09, up €0.74.

• Free cash flow for 2024 was €402 million; liquidity stood at €5.5 billion at year-end; cash and cash equivalents €3.5 billion.

• Net financial expenses improved to €211 million from €443 million in 2023.

Outlook and guidance

• 2025 guidance: group adjusted EBIT €980 million–€1.03 billion; Industrial Activities adjusted EBIT €850 million–€900 million; net revenues flat year-over-year; industrial free cash flow €400–450 million.

• Efficiency program to deliver €300 million in CapEx and OpEx savings by 2026.

• Heavy-duty truck market in Europe expected at 280,000–290,000 registrations; medium-duty slightly down, light-duty flat; South America truck market expected to grow 10%.

• Two-speed year anticipated: lower activity in H1, recovery in H2; solid order books in Bus and Defence.