Iveco Group (IVG) Q3 2025 earnings summary

Executive summary

• Q3 2025 focused on operational discipline, cost management, and efficiency, with additional savings identified and revised guidance reflecting market challenges and ongoing divestitures.

• Truck business faced low European demand, especially in LCV Chassis Cab, impacting profitability; strict pricing and inventory control were maintained.

• Powertrain saw first signs of recovery in engine volumes, supporting profitability; bus unit maintained strong order books despite ramp-up costs.

• Sale of Defense business to Leonardo and tender offer by Tata Motors are on track for completion in H1 2026, with Defense classified as discontinued operations.

• Firefighting business sale completed January 2025; financials recast to reflect continuing operations.

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 €513 million, broadly in line with last year after adjusting for inventory effects.

• Available liquidity stood at €4 billion, including €1.9 billion in undrawn committed facilities.

Outlook and guidance

• Full-year 2025 guidance revised: group adjusted EBIT (including Defense) at €830–880 million (previously €880–980 million); industrial activities net revenues expected down 3–5% year-over-year.

• Adjusted EBIT for industrial activities forecast at €700–750 million; industrial free cash flow at €250–350 million.

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

• Excluding Defense, adjusted EBIT guidance is €680–730 million.

• 2025 industry volume outlook expects LCVs in Europe down 15%, South America down 10%, and Rest of World up 10%.