Iveco backs annual outlook despite near-term economic uncertainties

Iveco Group NV reported on Thursday that price increases and disciplined cost management supported its third-quarter performance, though this was not enough to prevent a decline in both sales and profits.

Iveco backs annual outlook despite near-term economic uncertainties

Iveco, based in Turin, Italy, is a transport manufacturer with a focus on light, medium, and heavy commercial vehicles, buses, and specialty vehicles. The company also operates a financial services arm, Iveco Capital. For the third quarter, IFRS profit decreased by 3.8%, falling to €102 million from €106 million a year earlier. Diluted IFRS earnings per share rose to €0.38 from €0.35, but earnings before interest and tax (EBIT) dropped 16% to €201 million from €217 million. Revenue fell by 7.0% to €3.45 billion, down from €3.71 billion. Iveco described its third-quarter performance as "solid," driven by favorable price realizations and strict cost management, which offset the expected decline in volumes.

Further details

In Europe, truck industry volumes were largely as forecast: light-duty trucks showed resilience, while heavy-duty trucks and buses experienced a downturn. In contrast, Latin America saw strong double-digit growth across all segments. During the quarter, the company accelerated the launch of its 2024 Model Year truck lineup, which is expected to continue gaining traction through the remainder of 2024 and into 2025. For the first nine months of 2024, IFRS diluted EPS increased to €1.06 from €1.00, while IFRS profit grew to €296 million from €290 million. However, revenue declined to €10.73 billion from €11.20 billion. Looking ahead, Iveco reaffirmed its full-year 2024 industry volume expectations for heavy-duty trucks in Europe at 300,000 registrations. The preliminary forecast for 2025 heavy-duty truck registrations in Europe is between 280,000 and 290,000. Medium-duty truck volumes are expected to be slightly lower than in 2024, while the European light-duty truck market is forecast to remain stable compared to 2024. Iveco also confirmed its financial guidance for 2024, expecting adjusted EBIT to range between €920 million and €970 million. "We are on track to deliver solid results in 2024, despite short-term macroeconomic uncertainties, and are fully focused on positioning the group for success in 2025 and beyond," the company said.