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Iveco Swings to Loss Amid Quality Investments
7 May
Summary
- Iveco Group reported a Q1 loss of €109 million, a significant shift from last year's profit.
- The proposed acquisition by Tata Motors is anticipated to finalize by the third quarter of 2026.
- Sale of Iveco's defence business generated €1.6 billion, from which a €1.55 billion dividend was paid.
Iveco Group has reported a significant shift to a first-quarter consolidated EBIT loss of €109 million for 2026, compared to a profit in the prior year. This downturn is attributed to substantial investments in product quality and costs associated with bus rework, alongside a weaker performance in South America. Revenue saw a slight increase to €2.83 billion, supported by robust bus sales.
The planned acquisition of Iveco by Tata Motors is progressing, with most regulatory approvals secured. The transaction is now projected to conclude by the third quarter of 2026. This period also marked the completion of Iveco's defence business sale to Leonardo SpA, netting approximately €1.6 billion, which enabled an extraordinary interim dividend of €1.55 billion in April.
The truck division experienced a revenue decline of 7.8% to €1.81 billion, swinging to an adjusted EBIT loss due to lower volumes and adverse market conditions in South America, coupled with elevated production costs. Conversely, the bus division demonstrated strong volume growth, with revenues up 28.9% to €616 million. Iveco has secured the leading position in the European electric vehicle market, now holding nearly 23% overall market share.
