Iveco Group, an Exor Group company active in the automotive sector in the Commercial and Special Vehicles, Powertrain and related Financial Services segments, obtained a loan of 150 million euros with Cassa Depositi e Prestiti (CDP), intended for creation of new projects in Italy focused on research, development and innovation.
Research into new technologies in electric mobility
Thanks to the resources provided by Cdp, the Turin company will develop innovative technologies in the field of electric propulsion, autonomous driving solutions, digitalisation and vehicle connectivity to improve efficiency, safety, driving comfort and productivity.
The investments, with a 5-year amortization, will be made in Italy by the end of 2025.
Iveco: rumors about Leonardo's interest in the Defense division
Last week, Iveco was in the spotlight over rumors that Leonardo is reportedly planning the acquisition of Iveco Defense Vehicles (IDV), an Exor subsidiary specializing in military vehicles. According to Corriere della Sera, Leonardo has involved some international investment banks, including UBS, to study the acquisition of IDV. This move is part of a strategy to create an Italian hub in the military vehicle sector. The value of IDV is estimated at around 750 million euros, but some analysts hypothesize a higher valuation considering the multiples of other companies in the sector.
Iveco: quarterly results above expectations
2024 is off to a positive start for the company. The shares are in constant growth and reported quarterly results above expectations in the first quarter of the year. L'Net income was 22 million euros, slightly lower than in 2023, but adjusted net profit rose to 153 million, doubling forecasts despite a loss of 115 million from the transfer of the Fire Fighting business. L'adjusted ebit reached 233 million euros, exceeding forecasts of 170 million with an increase of 34% and a margin of 6,9%. THE consolidated revenues they were 3,37 billion euros, in line with the previous year but higher than the consensus of 3,35 billion. Net revenues from industrial activities remained stable at 3,283 billion euros, despite difficulties in South America and changes in exchange rates.
Il free cash flow of industrial activities improved by 110 million compared to the first quarter of 2023, but is still negative at -436 million. Financial charges decreased to 21 million euros, compared to 72 million in the same period in 2023, thanks to a more effective hedging strategy and improved accounting for hyperinflation in Argentina. Available liquidity fell to €4,685 billion, including €2 billion in available credit lines.
Financial forecasts confirmed for 2024, anticipating a 4% decline in net revenues from industrial activities compared to 2023, with a consolidated adjusted ebit between 920 and 970 million euros and an adjusted ebit of industrial activities between 790 and 840 million euros. The free cash flow of industrial activities is estimated between 350 and 400 million euros, while industrial investments are expected to be around one billion euros.
