Iveco Group 2026 Third Quarter Results

A quarter marked by continued efforts in quality initiatives,
with revenue growth offset by a temporary product mix impact

Following the successful completion of the tender offer,
Iveco Group is now part of Tata Motors

In the third quarter, Iveco Group recorded consolidated revenues of €3.16 billion, an increase of 1.4%, and Industrial Activities net revenues of €3.09 billion (+1.5%). Industrial Activities Adjusted EBIT was nil, mainly on the back of continued focus on quality, as planned, negative product mix and inflation impact. Free Cash Flow registered an outflow of €656 million, in line with seasonality typical of this quarter, while Available Liquidity remained solid at €3.7 billion as of 30^th September 2026, including €1.9 billion of undrawn committed facilities.

Truck confirmed its leadership position in the chassis cab segments and further reinforced it in the upper end of the light commercial vehicle (LCV) market. Compared to the third quarter of 2025, European industry volumes were largely stable across all ranges. European order intake in medium- and heavy-duty remained solid, increasing 23% and remained broadly flat in light-duty. While profitability was affected by competitive pressure in LCV, driven by flattish industry demand, the business unit maintained disciplined pricing in European heavy-duty vehicles.

IVECO BUS confirmed its place among the leaders in the European e-bus market and consolidated its strong market share in the City and Intercity segments. Due to the unfavorable comparison to the same quarter of 2025, when Intercity demand peaked, deliveries fell 6%. Profitability was also affected by a negative product mix.

In Powertrain, overall engine volumes increased by 5% compared to the third quarter of 2025, due to a steady increase in European small-engine deliveries across off- and on-road applications. Fewer large-engine deliveries, particularly in the Americas, affected profitability; an impact that was partially offset by disciplined cost control and continued operational efficiencies. Continuous efforts in quality initiatives, as planned, have negatively affected third quarter’s profitability across business units.

Looking ahead, despite weaker industry demand for LCVs, macroeconomic uncertainties, a negative product mix and continuous effort in quality initiatives across business, the Company expects profitability to recover in Q4 2026. Industrial Activities free cash flow generation is expected to be solid in the last quarter of the year, as per usual seasonality.

“In the third quarter, we continued to prioritise quality throughout the company, dedicating additional resources in line with the strategy we set for the year. This deliberate choice weighed on profitability, along with an unfavourable product mix across business units. Our efforts in quality reached their peak during the quarter and, from now onwards, will gradually decrease. Their benefits will become increasingly visible in our performance and will eventually make a positive contribution to our results. Overall, our revenues were slightly up versus the previous year, demonstrating the solid competitiveness of our products.”

Olof Persson, Chief Executive Officer

Notes:
Iveco Group consolidated financial results included in this press release are prepared in accordance with EU-IFRS.
(*)      2026 and 2025 financial data shown in this press release refer to Continuing Operations only (ie. excluding Defence business), unless otherwise stated. In particular, on 18^th March 2026, Iveco Group transferred the full ownership of its Defence business (IDV and ASTRA brands) to Leonardo S.p.A., as per the terms of the agreement announced on 30^th July 2025. In accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in July 2025, the Defence business met the criteria to be classified as a disposal group held for sale since that date; it also met the criteria to be classified as Discontinued Operations.
(1) Non-EU-IFRS financial measures: refer to the “Non-EU-IFRS Financial Information” section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.
(2) Comparison vs 30^th June 2026.

Q3 2026 Performance and Results by Business Unit

Consolidated revenues amounted to €3,158 million compared to €3,115 million in Q3 2025, up 1.4%. Net revenues of Industrial Activities were €3,091 million compared to €3,044 million in Q3 2025, up 1.5%, mainly due to higher volumes in Europe and favourable foreign exchange impacts, partially offset by lower pricing.

Adjusted EBIT was €30 million compared to €111 million in Q3 2025, with a margin of 0.9% (3.6% in Q3 2025). Adjusted EBIT of Industrial Activities was nil compared to €76 million in Q3 2025, mainly due to unfavourable production costs due to strengthened quality focus, Truck net pricing, and negative product mix across businesses.

Adjusted Net Loss was €32 million (Adjusted Net Income of €40 million in Q3 2025) and Adjusted Diluted Earnings per share was negative €0.12 (positive €0.15 in Q3 2025).

Net financial expenses amounted to €72 million compared to €58 million in Q3 2025, mainly due to a negative impact of hyperinflation accounting in Türkiye and higher borrowing costs.

Reported income tax was €16 million, with an Adjusted Effective Tax Rate (Adjusted ETR⁽¹⁾) of 24% in Q3 2026, which reflects the different tax rates applied in the jurisdictions where the Group operates and some discrete items.

Free Cash Flow of Industrial Activities was negative at €656 million compared to negative €513 million in Q3 2025, mainly due to working capital absorption and higher investments.

Available Liquidity was €3,713 million as of 30^th September 2026, including €1,900 million of undrawn committed facilities.

Truck

Notes:

(1) Non-EU-IFRS financial measures: refer to the “Non-EU-IFRS Financial Information” section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.

Bus

Powertrain

Financial Services

Iveco Group Results for the Nine Months ended 30^th September 2026