Iveco Group (IVG) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a decisive response to lower European truck demand, with production realignment, inventory adjustments, and the full launch of new LCV models to support a second-half recovery.

• Net revenues declined 10% year-over-year to €3.03 billion, with adjusted EBIT margin at 5.0% and strategic partnerships secured in Truck, Financial Services, and with Ford Otosan and Stellantis.

• The Board approved the spin-off of the Defence business, with ongoing interest from strategic buyers.

• Major Defence contract awarded by the Dutch Ministry of Defence for 785 vehicles, with an option for 785 more.

• Award-winning products and increased market share in electric city buses and intercity segments.

Financial highlights

• Consolidated net revenues: €3.03 billion, down 10% year-over-year; adjusted EBIT: €152 million (5.0% margin); industrial activities EBIT: €117 million (4.0% margin).

• Adjusted net income: €84 million; adjusted EPS: €0.31; free cash flow of industrial activities: -€794 million.

• Available liquidity: €4.7 billion, including €1.9 billion undrawn committed facilities; net cash (industrial activities): €1.1 billion.

• Cash and cash equivalents: €2.79 billion at quarter-end.

• Dividend of €0.33/share paid in April 2025; share buyback authorization renewed.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: group adjusted EBIT €980–1,030 million; industrial activities net revenues flat year-over-year; industrial activities EBIT €850–900 million; industrial free cash flow €400–450 million.

• Industry outlook: European LCV and M&H trucks expected flat to down 5%; South America up 10%.

• H2 2025 expected to be stronger, with gradual improvement from Q2 and continued momentum in Bus and Defence.

• Order intake strong in Europe and Latin America, with book-to-bill ratios above 1 across segments.