Iveco shares up after earnings

Published 10/02/2025, 10:44
© Reuters.

Investing.com -- Shares of Iveco (BIT:IVG) jumped over 2% on Monday following the company’s results, posted on Friday. 

Iveco’s full-year 2024 revenue stood at €15.3 billion, down from €16 billion in 2023, as lower volumes in some segments were partially offset by price adjustments. 

The transport vehicle manufacturer reported a net profit of €394 million, up from €268 million the previous year, with adjusted net income rising to €569 million, an increase of €181 million. 

Diluted earnings per share improved to €1.44 from €0.91, while adjusted diluted EPS climbed to €2.09, up from €1.35.

Despite a decline in overall revenue, certain divisions performed strongly. Defence revenue grew by 15.1%, helping the segment achieve an adjusted EBIT margin of 10%, while the Bus unit saw a 13.3% increase in revenue, supported by a higher share of electric vehicle sales.

In contrast, the Truck and Powertrain businesses faced volume declines, though pricing strategies helped mitigate the impact.

Quarterly results were more mixed. In the fourth quarter of 2024, consolidated EBIT dropped to €93 million from €225 million a year earlier, while adjusted EBIT declined slightly to €248 million from €262 million. 

However, adjusted net income more than doubled to €128 million from €49 million in Q4 2023, reflecting tax benefits and operational efficiencies.

The company also reported strong cash flow and liquidity levels, with €1.3 billion in operating cash flow and €402 million in free cash flow from industrial activities. 

Available liquidity rose to €5.47 billion, up €726 million year-over-year, while net debt improved to €2.67 billion, down from €3.24 billion in 2023.

As for free cash flow in 2025, Iveco expects it to range between €400 million to €450 million, with adjusted EBIT between €980 million and €1.03 billion. 

The company remains cautious about the first half of the year, but expects demand to improve later in the year. 

In addition, the company announced plans to spin off its Defence business, which will increase strategic flexibility and simplify its corporate structure.

In addition, the company proposed a share buyback program of €130 million and a dividend of €0.33 per share.

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