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

Iveco NV

03/11/2026 20:11

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: ID:nGNXbZj6KG

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

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(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.)