Iveco Group published its 2025 annual report. Bus deliveries? +4% in Europe and +2% in South America

The Board of Directors of Iveco Group has approved the preliminary results for the 2025 financial year, which closed with consolidated net revenues of €13.4 billion, 7% lower than in 2024. Net revenues from industrial activities also declined by 7%, reaching €13.1 billion, with an adjusted EBIT of €528 million.

Alongside the report, the Group stated that “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.

The comment from Olof Persson, CEO of Iveco Group

«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. In response, we moved quickly to strengthen inventory controls, maintain strict cost discipline and accelerate our efficiency programme», commented Olof Persson, Chief Executive Officer of Iveco Group.

The bus segment

With regard to the bus business, the past year was positive: deliveries of Iveco buses increased by 4% in Europe and by 2% in South America.

«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, thereby freeing up this working capital».

The truck and powertrain segments of Iveco Group

«In our Truck business unit, we focused on balancing pricing and market share, while carefully managing inventory within the dealer network and significantly reducing it in Europe to offset higher dealer inventory levels in South America. We also protected our leadership position in the LCV chassis cab sub-segment and maintained disciplined pricing in the Medium & Heavy segment. In Powertrain, the progressive growth in engine volumes supplied to third-party customers starting from the third quarter supported profitability improvements in the second half of 2025. This was accompanied by a positive product mix and pricing policies, strict cost control, and continuous operational efficiency improvements».