Feb 12 (Reuters) - Italian truck-maker Iveco posted a 28% drop in its full-year adjusted operating profit on Thursday, hit by weaker European truck demand and delays at a French bus plant. The group,
Iveco Reports 28% Profit Decline Amid Tata Motors Acquisition
Iveco's Financial Challenges and Future Plans
By Laura Contemori
Impact of Plant Delays
Feb 12 (Reuters) - Italian truckmaker Iveco, set to be acquired by India's Tata Motors, reported a 28% drop in its full-year adjusted operating profit on Thursday, hit by weaker European truck demand and delays at a French bus plant.
Market Conditions and Sales Outlook
Delays at the Annonay bus plant in France left many vehicles unfinished and undelivered at the end of the year, resulting in a one-off negative cash flow impact of 200 million euros, CEO Olof Persson said during a conference call.
Upcoming Defence Business Sale
Iveco's adjusted operating profit fell to 645 million euros ($765 million) last year, from 892 million euros in 2024.
"We have a solid plan to deliver delayed buses in 2026 and thereby recover the negative impact," Persson said, adding that the group expected extra ramp‑up costs at the site to ease through the first half of the year.
J.P. Morgan, in its take on the results, said 2025 was a challenging year marked by declining European market for both light commercial vehicles and heavy-duty trucks, which weighed on Iveco's volumes and profitability.
Iveco on Wednesday called an extraordinary general meeting for March 25 to approve a planned sale of its defence business to Italy's Leonardo ahead of Tata's takeover.
The sale of the defence business and Tata Motors' tender offer are both progressing in line with prior timelines, Persson said in a statement. The defence sale is expected to close by March, with the tender offer due to be completed in the second quarter.
($1 = 0.8432 euros)
(Reporting by Laura Contemori in Gdansk; Editing by Milla Nissi-Prussak)
