Iveco Group 2026 Second Quarter Results

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Iveco Group 2026 Second Quarter Results^(*)

The Board of Directors approves Q2 and H1 2026 preliminary results

Strong growth in revenues led by higher volumes in Europe; Q2 profitability reflects planned investments in quality

Tata Motors’ Tender Offer expected to be launched in early September 2026
with closure envisaged by early November 2026

In the second quarter, Iveco Group recorded a strong increase in consolidated revenues of €3,764 million (+7.3%) and also in industrial revenues of €3,696 million (+7.9%), in particular thanks to higher European volumes. Industrial Activities generated an Adjusted EBIT of €104 million. Free Cash Flow represented an outflow of €45 million, while Available Liquidity remained solid at €4.4 billion as of 30^th June 2026, following payment of the ~€1,550 million extraordinary interim dividend on 22^nd April 2026 from the proceeds of the Defence business disposal.

Truck reaffirmed its leadership position in the upper-end and chassis-cab segments of the light commercial vehicle market, while maintaining disciplined pricing in European heavy-duty vehicles. Compared with the second quarter of 2025, European industry volumes were broadly stable in light-duty and increased by 9% in medium- and heavy-duty. Order intake remained strong, increasing 21% in light-duty and 47% in medium- and heavy-duty. The European heavy-duty book-to-bill ratio improved by 33 basis points year-over-year, while light commercial vehicles remained steady. Profitability was affected by the additional resources dedicated to quality, partially offset by higher volumes and positive pricing.

IVECO BUS retained its number one position in the European electric bus market and consolidated its number two ranking overall, with a market share of more than 25%. Bus deliveries increased by 8%, supported by the Annonay plant operating at full capacity. Profitability was affected by rework costs associated with the last batch of unfinished city buses carried over from 2025, now fully deployed, partially offset by higher volumes and positive pricing. This rework is now complete, removing the related cost impact from the second half of the year.

In Powertrain, overall engine volumes increased by 9% compared with the second quarter of 2025, driven by increased small-engine deliveries in Europe across on-road and off-road applications. Profitability was affected by an unfavourable product mix, primarily reflecting fewer large-engine deliveries in the Americas, and the previously mentioned investments in quality. These impacts were partially offset by disciplined cost control and continued operational efficiency.

Consistent with the Company’s ambition to become a premium partner, Model Year 26 truck range was launched in the first week of July at IVECO Experience 2026, with the participation of 2,000 customers, dealers, suppliers, partners, media representatives and employees. IVECO restated its commitment to supporting customers throughout the entire vehicle lifecycle, through best-in-class, end-to-end quality, innovation and close customer relationships. It also showcased the next stage of the journey that began two years ago, guided by the ‘Spirito in Movimento’ ambition and its three pillars: Motion by Design, Motion through Experience and Motion as Family.

Looking ahead, the Company expects a gradual recovery in profitability during H2 2026, reflecting the weaker industry demand for LCV towards the end of the year, particularly in the upper end, and increased macroeconomic uncertainties that will negatively impact the full year performance of our industrial activities. These are expected to be partially offset by the actions implemented in H1 2026 and the acceleration of our Efficiency Programme. H2 2026 is also expected to deliver solid Free Cash Flow generation.

With regard to the Tata Motors’ Tender Offer for the proposed acquisition of the Iveco Group, the regulatory process is reaching its final stage, with only one pending approval to be received by Tata Motors. Based on the information received from Tata Motors, following its interactions with the competent Authority, all requests have been addressed and final clearance is expected to be received by end of August 2026. Accordingly, the Tender Offer is expected to be launched in early September 2026 with an expected closure by early November 2026.

“Our positive top line performance during this quarter is a strong indicator of the continuing resilience of our industrial businesses. Our deliberate focus on investments in quality – in line with the priorities we set out for the year – has had its impact on short-term profitability but is expected to deliver lasting benefits going forward across the full range of our products and services. These deliberate and positive actions to improve the core efficiency of our business will ensure that Iveco Group enters the next phase of its development as a strong and confident contributor to our transformational deal with Tata Motors that continues to make good progress in securing all the necessary approvals.”

Olof Persson, Chief Executive Officer

Notes:
Iveco Group consolidated financial results included in this press release are prepared in accordance with EU-IFRS.
(*)      2026 and 2025 financial data shown in this press release refer to Continuing Operations only (ie. excluding Defence business), unless otherwise stated. In particular, on 18^th March 2026, Iveco Group transferred the full ownership of its Defence business (IDV and ASTRA brands) to Leonardo S.p.A., as per the terms of the agreement announced on 30^th July 2025. In accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in July 2025, the Defence business met the criteria to be classified as a disposal group held for sale since that date; it also met the criteria to be classified as Discontinued Operations. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for Q2 and H1 2025 have been recast consistently.
(1)  Non-EU-IFRS financial measures: refer to the “Non-EU-IFRS Financial Information” section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.
(2)  Comparison vs 31^st March 2026.

Q2 2026 Performance of Continuing Operations and Results by Business Unit

Consolidated revenues amounted to €3,764 million compared to €3,507 million in Q2 2025, up 7.3%. Net revenues of Industrial Activities were €3,696 million compared to €3,426 million in Q2 2025, up 7.9%, mainly due to higher volumes in Europe.

Adjusted EBIT was €131 million compared to €171 million in Q2 2025, with a margin of 3.5% (4.9% in Q2 2025). Adjusted EBIT of Industrial Activities was €104 million (€143 million in Q2 2025), mainly resulting from unfavourable production costs due to a strengthened focus on quality across businesses and rework costs in Bus, partially offset by higher volumes. Adjusted EBIT margin of Industrial Activities was 2.8% (4.2% in Q2 2025).

Adjusted Net Income was €46 million (€79 million in Q2 2025) and adjusted Diluted Earnings per share was €0.17 (€0.29 in Q2 2025).

Net financial expenses amounted to €70 million, in line with Q2 2025.

Reported income tax expense was €13 million, with an adjusted Effective Tax Rate (adjusted ETR⁽¹⁾) of 25% in Q2 2026, which reflects the different tax rates applied in the jurisdictions where the Group operates and some other discrete items.

Free Cash Flow of Industrial Activities was negative at €45 million compared to positive €119 million in Q2 2025, mainly due to working capital absorption and increased investments driven by an enhanced focus on quality.

Available Liquidity was €4,432 million as of 30^th June 2026, after the extraordinary interim dividend distribution of ~€1,550 million, which occurred on 22^nd April 2026, on the net proceeds from the sale of Defence business. Available Liquidity also included €1,900 million of undrawn committed facilities.

Truck

Notes:

(1)  Non-EU-IFRS financial measures: refer to the “Non-EU-IFRS Financial Information” section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.

Bus

Powertrain

Financial Services

Iveco Group 2026 First Half Results