Iveco Group (IVG) Q4 2025 earnings summary

Executive summary

• 2025 was marked by challenging market conditions, with declining European truck demand and production ramp-up delays in the bus segment impacting volumes, profitability, and cash flow.

• Powertrain segment showed recovery in H2, supporting overall profitability.

• Order books across segments remain solid, providing visibility into FY 2026.

• Major transactions, including the Defence business sale to Leonardo and Tata Motors tender offer, are progressing as planned.

Financial highlights

• Consolidated net revenues for continuing operations were €13.4 billion, down 7% year-over-year; adjusted EBIT margin was 4.8%, down from 6.2%.

• Industrial Activities net revenues were €13.1 billion, down 7% year-over-year; adjusted EBIT at €528 million.

• Adjusted net income for continuing operations was €312 million; adjusted diluted EPS was €1.16.

• Free cash flow for continuing operations was -€109 million, mainly due to a €200 million one-off bus inventory effect.

• Available liquidity stood at €4.7 billion at year-end, with €1.9 billion in undrawn committed facilities.

Outlook and guidance

• No formal financial guidance for 2026 due to ongoing extraordinary transactions.

• Preliminary outlook: European truck market expected flat or slightly up, South America expected down 10%; bus demand slightly down in both regions.

• Delayed bus deliveries to be completed in 2026, with ramp-up costs expected to decrease in H1 2026.

• Efficiency programme acceleration planned for 2026, targeting further OpEx savings.