Iveco, the Italian maker of trucks and buses, has raised its financial targets for 2024 and adjusted the long-term goals following the release of its new strategic plan. These changes come after the company announced that it has achieved several targets ahead of schedule. They are based on conservative assumptions about the macroeconomic situation and industry expectations of the evolving market, according to Iveco.

The company now expects a 4% decrease in sales from its industrial activities for the current year, compared to a target of 5% set in an earlier business plan. The adjusted EBIT (Earnings Before Interest and Taxes) for the industrial sector is now anticipated to be between 790 million euros and 840 million euros, up from the previous 770 million euros to 820 million euros. For the entire group, the adjusted EBIT target for this year has been raised to between 920 million euros and 970 million euros, compared to a previous range of 900 million euros to 950 million euros.

For the year 2026, the company now forecasts a net revenue from industrial activities of 17 billion euros, corresponding to the midpoint of its previous target. It has raised its target for the adjusted EBIT margin in the industrial sector to 6% to 7%, up from previously 5% to 6%, and now expects a free cash flow of 600 million euros instead of the previous 500 million euros. Iveco now sees the group's adjusted net income from industrial activities at 700 million euros, which matches the midpoint of its previous target.

This strategic move underscores Iveco's adaptability to changing market conditions and its commitment to conservative, yet targeted financial planning. The update of objectives reflects the company's confidence in its strategic direction and its ability to respond to macroeconomic challenges. With these adjustments, Iveco positions itself more strongly for the future by focusing on sustainable growth and financial stability, even in a changing global economic environment.