Iveco closes the 1st quarter of the year with metrics not fully in line with the expectations, which confirm the resilience of the group, in a difficult panorama globally. Hence also the Guidance confirmation for the current year. Meanwhile, the process of Dismissance of the defense businessfor which some manifestations of interest have already received.
The numbers of the first quarter
Iveco reported consolidated revenues equal to 3.03 billion of euros, falling compared to 3.4 billion euros in the first quarter 2024 and also with respect to the 3.19 billion expected by analysts .. i Net revenues of industrial activities they were equal to 2.96 billion Euro compared to 3.28 billion euros in the first quarter 2024.
Ebit Adjusted Yes is attested to 152 million Euro, decreasing compared to 233 million euros in the first quarter 2024, with a margin of 5,% (6.9% in the first quarter 2024) and restarts lower than the consensus (172 million). The Ebit Adjusted of industrial activities was € 117 million (201 million euros in the first quarter 2024).
Net profit adjusted it was equal to 84 million euros (153 million euros in the first quarter of 2024) with an Adjusted action for 0.31 euros (0.57 euros in the first quarter 2024). The expectations of
The free cash flow of industrial activities It was negative for 794 million euros (compared to the negative of 436 million euros in the first quarter 2024). The liquidity available It was equal to 4,709 million euros to 31 March 2025 (5,474 million euros at 31 December 2024), including 1,900 million euros of available credit lines.
The CEO Persson: difficult quarter, ready to leave
“The business context of the first quarter was characterized by an RMEATION OF THE QUESTION in the European segments of Trock (truck), as expected. We therefore acted quickly to preserve and reaffirm our business prospects and the financial ones for the entire year “
The CEO of the Olof Persson group explained.
“We quickly made difficult decisionsadapting the production levels and realling the stocks, both within the company and throughout the sales network “to” put us in a solid position for the rest of the year “.” These actions have had impacts on margins and free cash flowbut they were included in the planning of the year and in line with our general strategy “.
“The sector PowerTrain (engines) continued to be hit by a overall difficult marketboth for on-road applications for off-road applications. Nonetheless, a rigorous cost management and the implementation of the group’s efficiency program have brought to a more streamlined cost base and a lower draw, putting the business in the position of being able to react easily when the demand will resume “.
“In short, in the first quarter we did what should be done, promptly and rigorously” and “We have laid solid bases for future growth, We are confident that our actions in the first quarter have laid the foundations for a second stronger semester and a year of success “
He concluded the CEO.
Financial perspectives 2025
Iveco confirms the forecasts for the end of the year. At group levels, an EBIT Adjusted between 980 and 1,030 million euros is expected. For industrial activities, stable net revenues are expected compared to 2024, an EBIT Adjusted between 850 and 900 million euros and a free cash flow between 400 and 450 million euros.
Next with the sale of the defense business
The Board of Directors of Iveco has decided to proceed with the Separation of the Business Defence (spin off). This is expected to take place by 2025, subject to the necessary approval of the operation by the board and shareholders of Iveco Group, as well as the advice of the other companies of the group involved.
Iveco confirms that he has “recently received some preliminary events of interest pEr the business defense by potential strategic buyers. ” sent to management to continue the preparatory activities for the spin-off, while exploring these preliminary interests.
