Iveco Group (IVG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered solid performance with new product launches, positive pricing, and cost management offsetting lower volumes, resulting in an adjusted EBIT margin of 6% and improved free cash flow by €56 million year-over-year.

• Robust order flow and strong customer feedback for Model Year 2024 truck and van lineups, with bus order book covering production into 2026.

• Bus segment ramped up electric city bus deliveries; powertrain expanded third-party client base despite volume declines.

• Defence business secured major contracts, including 420 vehicles for the Brazilian Army and a cooperation with RENK Group, reinforcing backlog and local manufacturing.

• Fire Fighting business classified as discontinued operations, with sale expected by January 2025.

Financial highlights

• Q3 2024 consolidated net revenues were €3.4 billion, down 7.1% year-over-year; industrial activities net revenues at €3.35 billion, down 7.4%.

• Adjusted EBIT for the group was €206 million (6% margin); industrial activities adjusted EBIT at €167 million (5% margin).

• Adjusted net income was €106 million, with adjusted diluted EPS of €0.39, up €0.07 year-over-year.

• Free cash flow of industrial activities improved by €56 million year-over-year to -€286 million; available liquidity at €4.4 billion as of September 30, 2024.

• Financial services net revenues rose 3.9% to €132 million; adjusted EBIT for financial services at €39 million.

Outlook and guidance

• Full-year 2024 guidance confirmed: adjusted EBIT €920–970 million, industrial activities net revenues down ~4%, free cash flow €350–400 million, investments around €1 billion.

• Q4 2024 expected to be down year-over-year for both light- and heavy-duty trucks in Europe; 2025 forecasts indicate stabilization or slight declines in truck volumes.

• Efficiency program to accelerate in 2025, reprioritizing investments and reducing CapEx/OpEx without impacting product plans.