“The business context of the first quarter was marked by lower industry demand levels across European Truck segments, as expected. As such, we acted fast to protect and reaffirm our business perspectives and full-year guidance.

I am proud of the organisation’s decisive response and long-term focus. We made the tough calls early: we adjusted production levels and realigned inventories – both within the Company and throughout our dealer network. We also finalised the phase-out of previous generation models, while completing the introduction of our new Model Year 2024 in light commercial vehicles. These actions had short-term impacts on financials, but they were absolutely necessary – putting us in a solid position for the rest of the year.

Throughout the Truck sector, we had to face market softness. Our European production was down 32% year-over-year, also due to our transition to the new vehicle generation and preparations for the ramp-up in demand that we expect later this year. These actions affected margins and free cash flow, but they were embedded within full-year planning and in line with our overall strategy.

Encouragingly, order intake in Europe and in Latin America was strong for both light and heavy-duty. Our book-to-bill ratio was well above 1 in Europe for the first time since first quarter 2023. This came in together with our proactive steps to adjust our production capacity and realign dealer inventory. We are now increasing our production rate and are ideally positioned to capture every future opportunity.

Powertrain continued to be hit with a tough market in general, for both on- and off-road applications. Nevertheless, strict cost management and the execution of the Group’s Efficiency Programme produced a leaner cost base and lower breakeven point, positioning the business for an agile response when demand recovers.

The Bus and Defence segments delivered strong results, following their market cycles. More specifically, they saw continuous margin improvement on a year-over-year basis, on the back of solid order books and favourable industry trends. What’s equally important is that we didn’t pause our forward momentum. We sealed two strategic partnerships in our Truck business, with Ford Otosan and Stellantis. Then, in this second quarter, we have entered a joint venture to accelerate green mobility through GATE. And we secured a major contract with the Dutch Ministry of Defence.

Furthermore, following the detailed assessment announced on 7^th February 2025, the Board of Directors decided to proceed with the separation of the Group’s Defence business via a spin-off. This is expected to take place within 2025, subject to required approval by the Board and the shareholders of Iveco Group (as well as the Boards of the subsidiaries involved), and the required regulatory authorisations.

At the same time, Iveco Group has recently received preliminary expressions of interest from potential strategic buyers for its Defence business. The Board has therefore mandated the management to continue the preparation for the spin-off, while exploring such preliminary interests.

In short, during the first quarter we did what had to be done – in a timely manner and with discipline. With strong order books, operational agility, a diversified business model and strategic partnerships firmly in place, we laid strong foundations for future growth. Our full-year guidance remains intact, our liquidity position is solid – we are confident that our actions in Q1 have laid the groundwork for a stronger second half and a successful year.”

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 2024.