The key targets for the industrial activities of the Iveco group by 2028 include revenues of approximately 19 billion euros, adjusted Ebit margin between 7 and 8%, free cash flow of approximately 0.9 billion euros.
At a consolidated level, a net result of approximately 0.9 billion euros and a diluted earnings per share of more than 3 euros per share are expected.
Iveco will invest over 5.5 billion euros from 2024 to 2028 to remain at the forefront of an innovation trajectory that is evolving very quickly.
The group announces the new strategic plan today, on the Capital Markets Day held in Turin.
The decision to hold a Capital Markets Day two years after the first Investor Day in November 2021 is motivated by the group's recent results: at the end of 2023 Iveco Group had already achieved the objectives set for 2026, or was ahead of the trajectory for their achievement.
In the strategic plan dating back to 2021, Iveco Group had forecast total revenues from industrial activities of between 16.5 and 17.5 billion euros by 2026 and reached 15.9 billion euros at the end of 2023, demonstrating that it is fully in line with the objectives.
The adjusted Ebit of industrial activities for 2026 was expected between 5 and 6% (it was 3.6% in 2019), a result that the company has already achieved in 2023.
For free cash flow from industrial activities, IvecoGroup had forecast 500 million euros in 2026 and has already totaled more than 400 million euros in 2023, ahead of the trajectory it had taken as its objective.
All this, it was explained, is largely attributable to the Company's extreme focus on results and the 'team' approach, which unites its people (over 36,000 worldwide) towards a common purpose.
Iveco and Ford Trucks, Ford Otosan's heavy commercial vehicle brand, announce a non-binding memorandum of understanding to explore collaboration in the joint development of a cab structure for heavy commercial vehicles compliant with new regulations coming into force in 2028/2029.
This is a preliminary step in the joint development of new products and technologies, extended to internal cabin components.
Iveco Group also extends and deepens its partnership with Hyundai Motor Company in the sector of solutions for electric heavy commercial vehicles, both battery and fuel cell, for the European markets.
By leveraging each partner's technologies and assets, the two companies plan to accelerate the transition to a sustainable future.
Iveco Group today also introduces a new performance reporting structure by business unit, providing greater transparency on the separate performance of powertrain, bus, defence, truck and financial services.
The FireFighting business unit (organized under the Magirus brand) is not included in the new strategic plan, nor in the related financial forecasts.
As communicated to the market yesterday, the group has in fact signed a definitive agreement for the transfer of ownership of Magirus to Mutares, a publicly listed company specializing in turnarounds.
The Powertrain business unit is one of the top three engine manufacturers globally.
It aims to achieve between 5.5 and 6 billion euros in net revenues by 2028 (previous target of around 5 billion euros by 2026) and aims for double-digit profitability, which means increasing the Adjusted Ebit margin by around 100 basis points per year, until reaching 9.5%-10.5% at the end of 2028. The Bus business unit, with an investment of 600 million euros in advanced technology between 2024 and 2028, aims to reach between 3 and 3, 5 billion euros in net revenues by 2028 and is determined to grow so as to almost double profitability compared to 2022, reaching 7-8% by 2028.
Defense is configured as an independent and self-sufficient business unit, which emphasizes technological innovation, operational excellence and strategic partnerships.
Thanks to an order book that exceeds 4 billion euros, it expects to achieve between 1.2 and 1.3 billion euros in net revenues by 2028, with an adjusted Ebit margin between 12 and 13%.
The Truck business unit intends to leverage its leadership in the light commercial vehicle segment with the Daily and eDaily models, and in the medium range with the well-known Eurocargo, while improving margins in the heavy truck segment with the S-Way and S-eWay models.
It intends to reach 11.0-11.5 billion euros in net revenues by 2028, with an adjusted Ebitmargin of approximately 7%.
The Financial Services business unit is focused on confirming current results.
It aims to grow the managed captive portfolio to 8-9 billion euros compared to 6.9 billion euros in 2023, with an adjusted Ebit margin between 130 and 150 million euros by 2028.
Reproduction reserved © Copyright ANSA