Iveco Group has reported strong growth in second-quarter 2026 revenues, driven by higher vehicle volumes across Europe, even as profitability declined due to planned investments in product quality. The company also confirmed that Tata Motors’ tender offer for the proposed acquisition of Iveco Group is expected to commence in early September 2026, with completion expected by early November, subject to final regulatory approval.
Revenue increases despite low profitability
For the quarter ending June 30, 2026, consolidated revenues increased 7.3% year-on-year to €3.76 billion, while revenues from industrial activities increased 7.9% to €3.70 billion, primarily supported by strong demand in European markets.
However, profitability came under pressure as the company increased investment in quality initiatives across its product portfolio. Consolidated EBIT declined to €121 million from €169 million in the same quarter last year, while adjusted EBIT stood at €131 million, compared to €171 million a year ago.
Net profit for the quarter fell to €38 million from €79 million in Q2 2025. Adjusted net income was €46 million, while diluted earnings per share decreased from €0.28 to €0.14.
Liquidity remains strong
Iveco Group generated free cash flow outflow of €45 million during the quarter. Despite this, the company maintains a solid financial position with available liquidity of €4.43 billion as of June 30, 2026.
The liquidity position reflects the payment of an extraordinary interim dividend of approximately €1.55 billion in April following the proceeds from the disposal of its defense business.
Truck business shows strong performance
The Truck Division maintained its leadership in Europe’s upper-end and chassis-cab light commercial vehicle segments while continuing its disciplined pricing strategy in the heavy-duty truck market.
European industry demand in the light commercial vehicle segment remained broadly stable and increased by 9% in the medium and heavy duty categories compared to the previous year.
Customer demand remained good, with order volume up 21% in light-duty vehicles and 47% in medium- and heavy-duty trucks.
Although high sales volumes and favorable pricing supported the business, profitability was affected by additional investments made to improve product quality.
IVECO BUS maintains electric bus leadership
IVECO BUS continued to strengthen its position in Europe’s zero-emission mobility market by maintaining its number one position in the European electric bus segment, while maintaining its second place ranking with more than 25% market share overall.
Bus deliveries increased 8%, supported by full-capacity production at the company’s Anone manufacturing facility.
Profitability was temporarily affected by rework costs associated with the last batch of unfinished city buses due from 2025. The company confirmed that this work has now been completed, eliminating the related cost impact for the second half of the year.
Increase in powertrain volume
The Powertrain business recorded a 9% growth in engine volumes due to higher deliveries of smaller engines in European on-road and off-road applications.
However, margins were impacted by continued investment in quality as well as an unfavorable product mix due to lower deliveries of larger engines in the US. These pressures were partially mitigated by disciplined cost management and improvements in operational efficiency.
New model year 2026 truck range unveiled
Earlier in July, Iveco presented its model year 2026 truck range during the IVECO Experience 2026 event, which was attended by approximately 2,000 customers, dealers, suppliers, partners, media representatives and employees.
The company reaffirmed its commitment to deliver premium customer experiences through advanced quality, innovation and comprehensive lifecycle support, guided by its strategic vision built around the three pillars of Motion by Design, Motion through Experience and Motion as Family.
Outlook
Looking ahead, IVECO expects profitability to gradually improve during the second half of 2026, supported by the implementation of efficiency measures initiated earlier this year.
The company acknowledged that soft demand in the European light commercial vehicle market and broader macroeconomic uncertainties are expected to weigh on full-year industrial performance. However, these headwinds are expected to be partially offset by ongoing efficiency initiatives and strong free cash flow generation in the second half of the year.
Progress on Tata Motors acquisition
Providing an update on the proposed acquisition by Tata Motors, Iveco said the regulatory approval process is nearing completion, with only one approval remaining.
According to the company, Tata Motors is expected to get the final regulatory approval by the end of August 2026. Subject to that approval, the tender offer is expected to open in early September 2026, with completion targeted for early November 2026.
Commenting on the results, Iveco Group said the company’s strong revenue performance reflects the resilience of its industrial businesses. While investments in quality have impacted short-term profitability, management believes that these initiatives will strengthen long-term competitiveness and position the company for the next phase of growth as it moves closer to completing its proposed combination with Tata Motors.
