Iveco Group reported its first quarter 2026 financial results, highlighting a period focused on improving product quality and operational execution amid ongoing industrial volatility. The quarter also marked the completion of the company’s Defence business sale, while the planned Tata Motors tender offer is expected to close by the third quarter of 2026.
Consolidated revenues for Q1 2026 stood at €2,828 million, slightly higher than the €2,806 million recorded during the same period last year.
Net revenues from Industrial Activities reached €2,766 million compared to €2,736 million in Q1 2025, supported primarily by stronger volumes in the Bus segment. However, this growth was partially offset by lower truck volumes in South America and adverse foreign exchange impacts.
Despite stable revenues, profitability declined significantly during the quarter. Iveco Group reported an Adjusted EBIT loss of €55 million, compared to a positive Adjusted EBIT of €117 million in Q1 2025, resulting in a negative margin of 1.9 percent versus a positive 4.2 percent margin a year earlier.
Industrial Activities recorded an Adjusted EBIT loss of €90 million, compared to an €82 million profit in Q1 2025. The decline was mainly attributed to higher production costs linked to strengthened quality measures across businesses, along with rework costs in the Bus division. Consequently, the Adjusted EBIT margin for Industrial Activities fell to negative 3.3 percent from a positive 3.0 percent in the previous year.
The company also posted an adjusted net loss of €74 million, compared to an adjusted net income of €60 million in Q1 2025. Adjusted diluted earnings per share came in at a loss of €0.28, against positive earnings of €0.22 per share during the same quarter last year.
Iveco clarified that the Q1 2026 adjusted net loss excludes the net gain of €1,254 million generated from the sale of its Defence business, which has been accounted for under discontinued operations.
Net financial expenses increased to €43 million from €37 million in Q1 2025, primarily due to lower interest income in Türkiye and Brazil.
The company reported an income tax benefit of €36 million, reflecting a loss before taxes of €152 million. The adjusted effective tax rate stood at 24 percent for the quarter.
Free cash flow from Industrial Activities improved to negative €681 million compared to negative €847 million in Q1 2025, mainly due to reduced working capital absorption.
As of March 31, 2026, Iveco Group’s available liquidity stood at €5,498 million, excluding the extraordinary interim dividend distribution of €1,551 million paid on April 22, 2026, from the proceeds of the Defence business sale. The liquidity position also included €1,900 million in undrawn committed facilities.
On March 18, 2026, Iveco Group officially completed the transfer of its Defence business, including the IDV and ASTRA brands, to Leonardo S.p.A., following the agreement announced in July 2025. As a result, the Defence operations are now classified as discontinued operations in the company’s financial reporting.
