The Board of Directors approves FY 2025 preliminary results.

Extraordinary transactions for the sale of Defence and the Tata Motors Tender Offer are on track for completion in line with previously communicated timelines.

Continuing Operations (excluding Defence business)^(*)

“2025 was a challenging year for our industry, considering the declining European market for both light commercial vehicles and heavyduty trucks. In addition, we had a delay in the production ramp-up of buses in our Annonay plant in France. These two factors weighed on volumes and profitability of the Group and impacted our full-year free cash flow performance. In response, we moved quickly to tighten inventory controls, maintain strict cost discipline and push the acceleration of our Efficiency Programme.

In our Truck business unit, we focused on balancing pricing with market share, while carefully managing channel inventory, reducing it substantially in Europe to offset higher dealer inventory levels in South America. We also protected our leadership position in the LCV chassis cab sub-segment and maintained disciplined pricing in Medium & Heavy as we entered the final phase of introducing our Model Year 2024 in Europe.

Profitability improvements in our Bus business unit were tempered by additional costs associated with the delay in the production rampup in Annonay, and supplier delays. Consequently, the free cash flow generation was negatively impacted by 200 million euros. We have taken decisive steps to ensure that the unfinished products in our inventory at the end of last year are deployed this year, freeing up this working capital.

In Powertrain, progressive growth in third-party client engine volumes from Q3 onwards supported the profitability improvement in the second half of 2025. This came alongside positive mix and pricing, disciplined cost control and continued operational efficiency.

Looking at full year 2025 financial performance for Continuing Operations, Consolidated Net Revenues were 13.4 billion euros at yearend, down 7% vs the previous year, and Consolidated Adjusted EBIT margin was 4.8%. Industrial Activities Net Revenues stood at 13.1 billion euros, down 7% versus last year, with Adjusted EBIT at 528 million euros.

2025 was a challenging year and I am proud of how the Iveco Group team performed and adapted to respond to the challenges, while also progressing our two extraordinary transactions in line with the timelines previously communicated, with closing of Defence sale expected within March 2026 and the completion of Tata Motors tender offer in the second quarter of 2026.

I look ahead with confidence as we remain focused on quality, operational execution and the acceleration of our Efficiency Programme. Across all business units, we remain committed to delivering long-term value for all our stakeholders.”

Olof Persson, Chief Executive Officer

Notes:

Iveco Group consolidated financial results included in this press release are prepared in accordance with EU-IFRS

(*) On 30^th July 2025, Iveco Group announced the signing of a definitive agreement to sell its Defence business (IDV and ASTRA brands) to Leonardo S.p.A. The corporate carve-out of the Defence business was completed in 2025 and the required regulatory approval processes are in progress as expected. As announced in July 2025, if the sale to Leonardo S.p.A. is not completed prior to or on 31^st March 2026, the Company is taking all actions necessary to complete a spin-off of the Defence business through a statutory demerger, which would transfer the business into a company, newly incorporated under Dutch law. In accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in July, the Defence business met the criteria to be classified as a disposal group held for sale; it also met the criteria to be classified as Discontinued Operations. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2024 comparative periods have been recast consistently. Furthermore, in 2024 the Fire Fighting business was classified as Discontinued Operations. Its sale was completed on 3^rd January 2025.

2025 and 2024 financial data shown in this press release refer to Continuing Operations only, unless otherwise stated

⁽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.