Iveco Group (IVG) Q2 2026 earnings summary

Executive summary

• Consolidated revenues rose 7.3% year-over-year to €3.76bn in Q2 2026, driven by higher European volumes and strong segment contributions.

• Industrial activities generated adjusted EBIT of €104mn, with profitability impacted by increased quality investments and rework costs in Bus, now completed.

• Adjusted EBIT declined to €131mn (margin 3.5%) from €171mn (margin 4.9%) in Q2 2025, mainly due to increased production and rework costs.

• Free cash flow was an outflow of €45mn, mainly due to negative working capital and higher investments.

• Available liquidity remained robust at €4.4bn after a €1,550mn extraordinary interim dividend from the Defence business disposal.

Financial highlights

• Industrial activities net revenues up 7.9% to €3.70bn; Truck +4%, Bus +22%, Powertrain +7%.

• Adjusted EBIT margin for industrial activities declined to 2.8% from 4.2% year-over-year.

• Adjusted diluted EPS was €0.17, down from €0.29 in Q2 2025.

• Adjusted net profit attributable to shareholders was €46mn, down €31mn year-over-year.

• Financial Services delivered stable adjusted EBIT of €27mn, with managed portfolio rising to €8.1bn.

Outlook and guidance

• Profitability is expected to recover gradually in H2 2026, aided by efficiency programs and completed rework costs.

• European LCV demand forecast revised to flat for FY 2026 (previously +5%), while medium and heavy-duty outlook remains at +5%.

• Bus demand expected to be slightly lower in Europe and South America; South American truck demand remains uncertain.

• Management highlights ongoing risks from macroeconomic and geopolitical uncertainties, production costs, and regulatory changes.

• Solid free cash flow generation anticipated in H2 2026.