"2025 was a challenging year for our sector, considering the decline in the European market for both light commercial vehicles and heavy-duty trucks. In addition, we experienced a delay in the production ramp-up of buses at our Annonay plant in France. These two factors weighed on the Group's volumes and profitability and affected the full-year free cash flow performance."
"Profitability improvements in the Bus business unit were tempered by additional costs related to the delay in the production ramp-up in Annonay and supplier delays. As a result, free cash flow generation was negatively impacted by €200 million. We have taken decisive actions to ensure that unfinished products in our inventory at the end of last year are delivered during this year."
"The extraordinary transactions relating to the sale of the Defence division and the Tata Motors tender offer are progressing according to plan and are in line with the previously communicated timelines for their completion. The closing of the sale of the Defence division to Leonardo is expected by March 2026, while the completion of the tender offer by Tata Motors is expected in the second quarter of 2026."
Iveco Group's Board approved 2025 preliminary results showing consolidated net revenues of €13.4 billion, representing a 7% decline from 2024. Industrial activities net revenues reached €13.1 billion with adjusted EBIT of €528 million. The challenging year reflected declining European markets for light commercial vehicles and heavy-duty trucks, compounded by production delays at the Annonay bus plant in France. The bus segment showed resilience with 4% delivery increases in Europe and 2% growth in South America. The Group implemented cost discipline and efficiency programs in response. Two major transactions are progressing: the Defence division sale to Leonardo, expected to close by March 2026, and Tata Motors' tender offer, anticipated for completion in Q2 2026.
#financial-results #strategic-transactions #bus-segment-performance #operational-challenges #cash-flow-management
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