Iveco Group (IVG) Q2 2024 earnings summary

Executive summary

• Achieved solid profitability in Q2 2024 with a 7.5% adjusted EBIT margin, despite a 5% YoY revenue decline, supported by positive pricing and cost containment.

• Adjusted net income rose to €182 million, with adjusted diluted EPS at €0.63, up €0.02 YoY.

• Robust order backlog: trucks cover 9–13 weeks of production, bus backlog covers all of 2024 and H1 2025, and Defense backlog covers the business plan period.

• No unusual order cancellations or net price erosion observed; pricing discipline maintained during model transition.

• Model Year 2024 truck rollout and production changeover were major operational focuses, with expectations for delivery momentum in H2 2024 and into 2025.

Financial highlights

• Q2 2024 consolidated net revenues: €3.9B, down 5% YoY; industrial activities net revenues: €3.8B, down 5.8% YoY, mainly due to lower volumes in Europe and adverse FX.

• Adjusted EBIT: €295M (margin 7.5%, stable YoY); industrial activities adjusted EBIT: €264M (margin 6.9%, up 10 bps YoY).

• Adjusted net income: €182M, up €15M YoY; adjusted diluted EPS: €0.63, up €0.02 YoY.

• Free cash flow from industrial activities: -€98M, due to temporary working capital absorption for Model Year 2024 launch.

• Available liquidity: €4.2B as of June 2024.

Outlook and guidance

• 2024 guidance confirmed: group adjusted EBIT €920–970M; industrial activities net revenue down ~4%; industrial adjusted EBIT €790–840M; industrial free cash flow €350–400M; investments ~€1B.

• Profitability improvement expected in Powertrain, Bus, and Defense; Truck to leverage Model Year 2024 and light commercial vehicles to offset heavy-duty market slowdown.

• Guidance based on robust order backlog and prudent H2 2024 outlook, especially Q4 pricing.

• Guidance excludes Fire Fighting business; escalation of macroeconomic, geopolitical, or supply chain issues could materially impact results.