TURIN. Update of objectives to 2028, strategic lines of development and partnerships. These are the main points presented today by Iveco Group at the Capital markets day. «The decision to hold a Capital markets day two years after the first Investor Day in November 2021 is motivated by the Group’s recent results: at the end of 2023 Iveco had already achieved the objectives set for 2026, or was ahead of the trajectory for their achievement” explains the company.
The key targets for industrial activities for 2028 include: net revenues of approximately 19 billion euros (the previous target was between 16.5 and 17.5 billion by 2026 and in 2023 the figure stood at 15.9 billion), adjusted Ebit margin between 7 and 8% (previous target between 5% and 6%, stood at 5.8% in 2023), free cash flow of approximately 0.9 billion euros. At a consolidated level they expect an adjusted net income of approximately 0.9 billion euros and adjusted diluted EPS of more than 3 euros per share. In 2023, Iveco, therefore, recorded an adjusted net profit of 352 million and revenues of 16.213 billion (+12.9%) with those of industrial activities equal to 15.877 billion (+12.1%).
«The first of our values states that we go beyond the obvious. He embodies the soul of our group and clearly reflects our ambition to consciously push the boundaries and courageously embark on new paths. We have shown that we can keep the promises we make” explains Gerrit Marx, CEO of Iveco Group. And he adds: «Today we commit with a new plan to an acceleration of our product portfolio, to stronger and more diversified partnerships and to a greater determination in pursuing sustainability». Among the main focuses, the decision to invest over 5.5 billion euros from 2024 to 2028 in innovation (at the presentation of the 2023 accounts the company had given investments in industrial activities of around one billion euros as guidance for 2024). The company focuses on three key areas: energy transition, artificial intelligence and software defined vehicles, autonomous driving. To keep up with these trends, Iveco Group has inaugurated its own “Software & Analytics” laboratory, to which it intends to dedicate a team of 500 specialized engineers within the next few years.
Another pillar of the Iveco Group strategy “envisages collaboration with organizations with similar and agile characteristics to accelerate innovation”. In particular, Iveco extends and deepens its partnership with Hyundai Motor Company in the sector of solutions for electric heavy commercial vehicles, both battery and fuel cell, for the European markets. By leveraging each partner’s technologies and assets, the two companies plan to accelerate the transition to a sustainable future. Furthermore, Iveco and Ford Trucks, Ford Otosan’s heavy commercial vehicle brand, have announced a non-binding Memorandum of Understanding to explore collaboration in the joint development of a cab structure for heavy commercial vehicles compliant with new regulations coming into force effective in 2028/2029. “This is a preliminary step in the joint development of new products and technologies, extended to internal cabin components and systems,” reads the new plan.
A final important chapter concerns sustainability: by 2026 (and not by 2030 as previously announced), 100% of the total electricity consumed will be produced from renewable sources. The group aims to recycle 75% of the water used in its industrial plants globally by 2026 (the previous target was 60%). The new 2028 goal for gender equality requires that 30% of clerical positions be entrusted to women. Meanwhile, investors have reacted positively to the presentation of the Plan and the stock is growing.