Iveco Group has reported a strong rise in second-quarter 2026 revenues, driven by higher vehicle volumes across Europe, even as profitability declined due to planned investments in product quality. The company also confirmed that Tata Motors’ tender offer for the proposed acquisition of Iveco Group is expected to launch in early September 2026, with completion anticipated by early November, subject to final regulatory approval.
Revenue Grows Despite Lower Profitability
For the quarter ended June 30, 2026, consolidated revenue increased 7.3% year-on-year to €3.76 billion, while revenue from Industrial Activities rose 7.9% to €3.70 billion, supported primarily by stronger demand in European markets.
However, profitability came under pressure as the company increased investments in quality initiatives across its product portfolio. Consolidated EBIT declined to €121 million from €169 million in the corresponding quarter last year, while Adjusted EBIT stood at €131 million, compared with €171 million a year earlier.
Net profit for the quarter fell to €38 million, down from €79 million in Q2 2025. Adjusted net income was €46 million, while diluted earnings per share declined to €0.14 from €0.28.
Liquidity Remains Strong
Iveco Group generated a Free Cash Flow outflow of €45 million during the quarter. Despite this, the company maintained a solid financial position with available liquidity of €4.43 billion as of June 30, 2026.
The liquidity position reflects the payment of an approximately €1.55 billion extraordinary interim dividend in April following the proceeds from the disposal of its Defence business.
Truck Business Delivers Strong Performance
The Truck division maintained its leadership in Europe’s upper-end and chassis-cab light commercial vehicle segments while continuing its disciplined pricing strategy in the heavy-duty truck market.
European industry demand remained broadly stable in the light commercial vehicle segment and increased 9% in the medium- and heavy-duty categories compared with the previous year.
Customer demand remained healthy, with order intake rising 21% in light-duty vehicles and 47% in medium- and heavy-duty trucks.
Although higher sales volumes and favourable pricing supported the business, profitability was impacted by additional investments made to improve product quality.
IVECO BUS Retains Electric Bus Leadership
IVECO BUS continued to strengthen its position in Europe’s zero-emission mobility market by retaining its number one position in the European electric bus segment while maintaining its second-place ranking overall with a market share exceeding 25%.
Bus deliveries increased 8%, supported by full-capacity production at the company’s Annonay manufacturing facility.
Profitability was temporarily affected by rework costs associated with the final batch of unfinished city buses carried over from 2025. The company confirmed that this work has now been completed, eliminating the related cost impact for the second half of the year.
Powertrain Volumes Increase
The Powertrain business reported a 9% increase in engine volumes, driven by higher deliveries of small engines across European on-road and off-road applications.
Margins, however, were affected by an unfavourable product mix due to lower deliveries of large engines in the Americas, along with continued investments in quality. These pressures were partially offset by disciplined cost management and operational efficiency improvements.
New Model Year 2026 Truck Range Unveiled
Earlier in July, Iveco introduced its Model Year 2026 truck range during the IVECO Experience 2026 event, attended by around 2,000 customers, dealers, suppliers, partners, media representatives and employees.
The company reaffirmed its commitment to delivering premium customer experiences through enhanced quality, innovation and comprehensive lifecycle support, guided by its strategic vision built around the three pillars of Motion by Design, Motion through Experience and Motion as Family.
Outlook
Looking ahead, Iveco expects profitability to improve gradually during the second half of 2026, supported by the implementation of efficiency measures introduced earlier this year.
The company acknowledged that softer demand in the European light commercial vehicle market and broader macroeconomic uncertainties are expected to weigh on full-year industrial performance. However, these headwinds are anticipated to be partially offset by ongoing efficiency initiatives and stronger free cash flow generation in the second half of the year.
Tata Motors Acquisition Progress
Providing an update on the proposed acquisition by Tata Motors, Iveco said the regulatory approval process is nearing completion, with only one remaining approval pending.
According to the company, Tata Motors expects to receive final regulatory clearance by the end of August 2026. Subject to that approval, the tender offer is expected to open in early September 2026, with completion targeted for early November 2026.
Commenting on the results, Iveco Group said the company’s strong revenue performance demonstrates the resilience of its industrial businesses. While investments in quality have affected short-term profitability, management believes these initiatives will strengthen long-term competitiveness and position the company for its next phase of growth as it moves closer to completing its proposed combination with Tata Motors.
