The following is an extract from the “Iveco Group 2026 First Quarter Results” press release(*). The complete press release can be accessed by visiting the media section of the Iveco Group corporate website: https://www.ivecogroup.com/media/corporate_press_releases or consulting the accompanying PDF:

A quarter focused on quality improvements against a backdrop of industrial volatility.
Defence sale completed in the quarter.
Tata Motors Tender Offer expected to close by Q3 2026.

Consolidated revenues amounted to €2,828 million compared to €2,806 million in Q1 2025. Net revenues of Industrial Activities were €2,766 million compared to €2,736 million in Q1 2025, mainly due to higher volumes in Bus, partially offset by negative volume in Truck in South America and an adverse foreign exchange rate impact.

Adjusted EBIT loss was €55 million compared to an Adjusted EBIT of €117 million in Q1 2025, with a negative margin of 1.9% (positive 4.2% in Q1 2025). Adjusted EBIT loss of Industrial Activities was €90 million (€82 million profit in Q1 2025), mainly driven by unfavorable production costs due to strengthened quality focus across businesses and rework costs in Bus. Adjusted EBIT margin of Industrial Activities was negative 3.3% (positive 3.0% in Q1 2025).

Adjusted net loss was €74 million compared to an adjusted net income of €60 million in Q1 2025, and adjusted diluted earnings per share was a loss of €0.28 (adjusted diluted earnings per share of €0.22 in Q1 2025). Q1 2026 Adjusted net loss did not include the net gain of €1,254 million on the sale of Defence business, included in the profit from Discontinued Operations, net of tax.

Net financial expenses amounted to €43 million compared to €37 million in Q1 2025 due to lower interest income in Türkiye and Brazil.

Reported income tax benefit of €36 million, deriving from a loss before taxes of €152 million, with an adjusted Effective Tax Rate (adjusted ETR) of 24% in Q1 2026, which reflects the different tax rates applied in the jurisdictions where the Group operates and some other discrete items.

Free cash flow of Industrial Activities was negative at €681 million compared to negative €847 million in Q1 2025, mainly driven by lower working capital absorption.

Available liquidity was €5,498 million as of 31st March 2026, before the extraordinary interim dividend distribution of €1,551 million, occurred on 22nd April 2026, on the net proceeds from the sale of Defence business. Available liquidity also included €1,900 million of undrawn committed facilities.

(*) 2026 and 2025 financial data shown refer to Continuing Operations only (ie. excluding Defence business), unless otherwise stated. In particular, on 18th March 2026, Iveco Group transferred the full ownership of its Defence business (IDV and ASTRA brands) to Leonardo S.p.A., as per the terms of the agreement announced on 30th July 2025. Following the signing of that agreement, the Defence business has been classified as Discontinued Operations.

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