Iveco Group NV (IVCGF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News

Fri, May 16, 2025, 12:04 AM 4 min read

• Net Revenues: Slightly implicit EUR 3 billion, down astir 10% twelvemonth implicit year.

• Net Revenues of Industrial Activities: EUR 2.96 billion, contracting by astir 10% twelvemonth implicit year.

• Financial Services Net Revenues: EUR 114 million, down 21.4% compared to anterior year.

• Adjusted EBIT: EUR 152 cardinal with a 5% margin; Industrial Activities adjusted EBIT astatine EUR 117 cardinal with a 4% margin.

• Net Financial Expenses: EUR 39 million, compared to EUR 21 cardinal successful Q1 2024.

• Adjusted Net Income: EUR 84 cardinal with an adjusted diluted EPS of EUR 0.31.

• Free Cash Flow Absorption: EUR 794 million, chiefly owed to little income volumes and moving superior seasonality.

• Available Liquidity: EUR 4.7 billion, including EUR 1.9 cardinal of undrawn committed facilities.

• Truck Net Revenues: Just nether EUR 2 billion, down owed to measurement contraction successful Europe.

• Bus Net Revenues: EUR 478 million, up astir 16% twelvemonth implicit year.

• Defense Net Revenues: EUR 278 million, up 31% twelvemonth implicit year.

• Powertrain Net Revenues: EUR 784 million, down 19% twelvemonth implicit year.

• Truck Adjusted EBIT Margin: 3%.

• Bus Adjusted EBIT Margin: 5.4%, up 30 ground points twelvemonth implicit year.

• Defense Adjusted EBIT Margin: Nearly 13%, up 260 ground points twelvemonth implicit year.

• Powertrain Adjusted EBIT Margin: 5.5%, down 70 ground points twelvemonth implicit year.

• Financial Services Adjusted EBIT: EUR 35 million.

• Managed Portfolio: EUR 7.9 billion, with retail accounting for 43% and wholesale 57%.

• Warning! GuruFocus has detected 4 Warning Signs with IVCGF.

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Iveco Group NV (IVCGF) successfully completed the phaseout of erstwhile procreation models and introduced the caller exemplary twelvemonth 2024 successful airy commercialized vehicles, positioning the institution good for aboriginal demand.

• The institution reported beardown bid intake successful Europe and Latin America for some airy and heavy-duty trucks, with a book-to-bill ratio supra 1 successful Europe for the archetypal clip since Q1 2023.

• Iveco Group NV (IVCGF) formed strategical partnerships with Ford Otosan and Stellantis, enhancing its presumption successful the motortruck concern and expanding its electrical conveyance lineup.

• The Bus and Defense segments delivered beardown results, with continuous borderline improvements and coagulated bid books.

• The institution maintained a coagulated liquidity presumption with disposable liquidity of EUR4.7 billion, including EUR1.9 cardinal of undrawn committed facilities.

• Iveco Group NV (IVCGF) faced a challenging marketplace situation with little manufacture request levels crossed European motortruck segments, resulting successful a 32% year-over-year diminution successful European production.

• The company's consolidated nett revenues contracted by astir 10% twelvemonth implicit year, chiefly owed to little volumes successful Europe for motortruck and powertrain and antagonistic FX translation effects.

• Financial Services nett revenues decreased by 21.4% compared to the anterior year.

• The adjusted EBIT borderline for Industrial Activities contracted, with a antagonistic interaction from little volumes and little businesslike fixed outgo absorption.

• The Powertrain conception experienced a 22% diminution successful motor volumes successful Q1 2025 compared to Q1 2024, reflecting a challenging manufacture environment.