Iveco shares jump after truckmaker's Q1 income tops estimates

Investing.com -- Shares in Iveco (BIT:IVG) jumped on Friday after the Italian truck and bus manufacturer reported a roughly 34% rise in first-quarter income and said margins had improved across all of its divisions.

The group posted adjusted earnings before interest and taxes in the three months ended on March 31 of 233 million euros, topping company-compiled consensus forecasts of 191 million euros, thanks to lower product costs and an upick in pricing.

Quarterly revenues of 3.37 billion euros were in line with the corresponding period in 2024 and also beat projections of 3.35 billion euros.

Analysts at Morgan Stanley said Iveco's truck division was a stand-out performer, with margins growing to 6.5% from 5.2% despite lower volumes in South America and weaker demand for medium- and heavy-duty models in Europe.

Iveco registered negative free cash flow of industrial activities of 436 million euros, although this was better than estimates of negative 569 million euros. The Morgan Stanley analysts said that investors will be keen to see the company improve its free cash flow "seasonality."

"For now, we think managing its supply chains and working capital requirements appropriately is key in order to keep meeting (or beating) cons[ensus] expectations," the analysts said.

Looking ahead, Iveco reiterated its full-year guidance for consolidated adjusted income of 920 million euros to 970 million euros, noting that this outlook was based on "conservative assumptions" regarding the evolution of macroeconomic developments.