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Investing.com -- Iveco Group (BIT:IVG) shares fell more than 4% on Thursday after the truckmaker reported weaker-than-expected first-quarter results, citing a sharp drop in deliveries and softer demand across its Truck segment.
In the first quarter, the company earned €3.03 billion, down 5% from the consensus estimate of €3.19 billion.
Adjusted EBIT came in at €152 million, missing the consensus figure of €172 million by 12%.
Truck deliveries fell 33% year over year, which significantly affected both profitability and cash generation.
Industrial free cash flow was reported at negative €794 million, compared with consensus expectations of negative €570 million.
The company attributed part of the earnings pressure to the ongoing transition to a new generation of vehicles.
Operational challenges in its core Truck segment contributed to the overall revenue and earnings decline.
Despite the weaker results, Iveco maintained its full-year 2025 guidance. The company expects group adjusted EBIT between €980 million and €1.03 billion, broadly in line with the company-compiled consensus of €982 million.
Industrial net revenue is projected to remain flat compared with fiscal year 2024, with industrial adjusted EBIT seen in the range of €850 million to €900 million. Free cash flow for the full year is forecast between €400 million and €450 million.
In its regional market outlook, the company maintained expectations for the European heavy-duty truck market at 280,000 to 290,000 units, the medium-duty market at 30,000 units, and light commercial vehicle demand to range from flat to a 5% decline.
The book-to-bill ratio in European Trucks rose above 1 for the first time since the first quarter of 2023, indicating that new orders outpaced deliveries during the period.
Separately, the company confirmed it will proceed with the planned spin-off of its Defence business. It also said it is reviewing interest from potential buyers.