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Italy's Iveco Group Q3 profit falls on quality costs, weak mix

By Reuters News


Overview

  • Italy commercial vehicle maker's Q3 revenue rose 1.4% yr/yr

  • Adjusted EBIT and adjusted net income declined due to quality initiatives and negative product mix

  • Industrial free cash flow was negative, reflecting higher working capital absorption and investments


Outlook

  • Company expects profitability to recover in Q4 2026

  • Iveco Group anticipates solid Industrial Activities free cash flow generation in Q4 2026

  • Company notes ongoing macroeconomic uncertainties and weaker demand for light commercial vehicles


Result Drivers

  • QUALITY INITIATIVES - Co said increased focus on quality, including dedicating additional resources, weighed on profitability across business units

  • NEGATIVE PRODUCT MIX - Co said an unfavourable product mix in trucks, buses and powertrain affected profitability

  • INFLATION AND COST PRESSURES - Co cited inflation and higher product costs as factors impacting margins, particularly in powertrain


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Loss Per Share

EUR 0.12

Q3 Adjusted Net Loss

EUR 32 mln

Q3 Adjusted EBIT

EUR 30 mln

Q3 Free Cash Flow of Industrial Activities from Continuing Operations

- EUR 656 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

  • Wall Street's median 12-month price target for Iveco Group NV is €14.40, about 0.2% above its November 3 closing price of €14.38

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Nov 2 - Stellantis chip shortage disrupts Fiat output in Italy, may last through December

  • Nov 3 - Germany's Schaeffler 9-month sales flat on China hit, EBIT margin rises

  • Nov 3 - Aptiv Q3 revenue rises on regional sales growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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