Iveco Group N.V.

Q3 2025 consolidated net revenues were EUR 3.1 billion, down 3.6% year over year, and net revenues of industrial activities were EUR 3.0 billion, down 3%. Group adjusted EBIT was EUR 111 million at a 3.6% margin; industrial activities adjusted EBIT was EUR 76 million at a 2.5% margin, both down 210 basis points versus Q3 2024. Adjusted net income for continuing operations was EUR 40 million, with adjusted diluted EPS of EUR 0.15. Free cash flow absorption was EUR 513 million, and available liquidity was EUR 4 billion, including EUR 2.3 billion of cash and cash equivalents and EUR 1.9 billion of undrawn committed facilities. Full-year 2025 guidance was revised. Group adjusted EBIT is now expected to be between EUR 830 million and EUR 880 million, while industrial activities net revenues are still expected to be down 3% to 5% year over year. Industrial activities adjusted EBIT is guided to EUR 700 million to EUR 750 million, and industrial free cash flow to EUR 250 million to EUR 350 million. Management said the updated outlook reflects slower-than-expected LCV recovery, especially in chassis cab, and extra bus ramp-up costs, with implied higher Q4 profitability year over year across business units.

Olof Persson said the company stayed focused on inventory discipline, cost control, and its multi-year efficiency program, which is accelerating and now expected to deliver additional full-year savings. He emphasized that Q3 weakness was concentrated in trucks, especially chassis cab, while bus and powertrain showed improving visibility and order trends. His tone was constructive: he repeatedly said the worst may be behind them in LCV and that Q4 should benefit from sold-out truck capacity, bus ramp-up costs moving behind the company, and improving third-party volumes in powertrain.

Federico Donati highlighted that lower volumes in Europe and FX, mainly in Brazil and Turkey, weighed on Q3 revenue and margins. He cited industrial net revenues of EUR 3.0 billion, adjusted EBIT of EUR 76 million, adjusted net income of EUR 40 million, and EPS of EUR 0.15; net financial expenses were EUR 58 million, taxes were EUR 17 million, and liquidity ended at EUR 4 billion. He also noted Q3 investment of EUR 150 million, down EUR 39 million year over year, as the company reprioritized less strategic spending and accelerated efficiency actions. For defense, he said Q3 net revenues were EUR 293 million, adjusted EBIT was EUR 25 million, and the funded order book was almost EUR 5.3 billion.

Analysts pressed management on whether LCV demand is truly turning, how Europe compares with Brazil/LatAm, and whether Q4 needs to make up a large earnings gap. Olof said LCV order intake and activity levels are encouraging, that the company is sold out for the rest of the year, and that LatAm inventories are being managed tightly through quick production adjustments. On powertrain, he said the recovery is being supported by third-party business wins and the end of destocking. On heavy trucks and market share, he said the new model is still in the final launch phase and should have more share potential over time, while Federico said defense should be viewed on a full-year basis because quarterly mix can vary by region and product.