“We ended the year with solid results, continuing our journey to achieve our business plan financial targets. Financial performance in 2024 benefited from positive price realisation and diligent cost management, which largely offset the impact of lower volumes experienced by some of the industries where we compete. The Adjusted EBIT margin of Industrial Activities stood at 5.7%, 30 basis points higher than full year 2023. Our free cash flow generation ended the year at €402 million.

We are reconfirming our full year 2025 preliminary forecast for heavy-duty trucks in Europe at between 280-290 thousand registrations, signalling a stabilisation of the market. For medium-duty trucks we expect volumes to be slightly down vs 2024. For light-duty trucks, our European industry forecast is mainly flat vs 2024. These forecasts reflect our expectations for a two-speed year: lower activity in the first half, with recovery in the second.

During Q4 2024 we continued to introduce our Model Year 2024 product line-up for Truck, maintaining a strong pricing discipline. Feedback from customers was positive and confirmed by our heavy-duty truck order intake, which was substantially up both sequentially and year-over-year. We kept production capacity below market demand, supporting dealers with the phase-out of Model Year 2022. The transition to Model Year 2024 will be largely completed by the first quarter of 2025 – as communicated earlier.

Bus continued to execute on its strong order book and ramped up deliveries of electric city buses, which reached 14.2% of the European market by year end – ranking it second in the segment. Powertrain continued managing its cost base, enabling it to end the year with an adjusted EBIT margin up year-overyear, while continuing to increase third-party customers. Defence saw double-digit margins as the business unit is delivering its full multi-year order book.

In 2025 and 2026 we will accelerate the implementation of our Efficiency Programme and reprioritise certain investments with the aim of reducing our operational spending without affecting our product plan – equating to saving of €300 million (CapEx and OpEx) compared to full year 2024 actuals.

Furthermore, in view of the different trends in the commercial vehicles and defence markets, and the increasingly different requirements for the long-term success of both businesses, the Board of Directors is considering separating Iveco Group’s Defence business, comprising the IDV and ASTRA brands and related activities, during 2025 through a spin-off. A separation could simplify the Group structure, increase management focus and create strategic flexibility for both businesses. The Board will provide an update on the outcome of this assessment in the coming months. Any steps post the assessment remain subject to the required internal and regulatory approvals.

Finally, let me reconfirm that we are proceeding at full force into 2025 with an unwavering focus on quality, operational efficiency and diligent pricing management.”

Olof Persson, Chief Executive Officer

Notes:

⁽¹⁾ Non-EU-IFRS financial measures: refer to the “Non-EU-IFRS Financial Information” section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.

⁽²⁾ Comparison vs 31^st December 2023.