At its Capital Markets Day,
Both the updated guidance and the future targets take into account the exclusion of the Fire Fighting Business Unit since, as announced on
Based on conservative assumptions on the evolution of the macro-economic scenario, with the interest base rate flat versus 2023 levels, and considering market evolution in line with industry’s expectations and a price policy in line with the markets, Iveco Group’s year-end guidance and future financial targets, in comparison to the previous ones, are as follows:
2024 Previous Guidance1 | 2024 Updated Guidance2 | ||
Industrial Activities | Net Revenues3 | ~(5)% | ~(4)% |
Adjusted EBIT | €770-820mn | €790-840mn | |
Free Cash Flow | €350-400mn | €350-400mn | |
Investments | ~€1bn | ~€1bn | |
Group | Adjusted EBIT | €900-950mn | €920-970mn |
2022-26 SBP1 | 2024-28 SBP2 | |||
2026 targets | 2026 targets | 2028 targets | ||
Industrial Activities | Net Revenues3 | €16.5-17.5bn | ~€17bn | ~€19bn |
Adjusted EBIT margin | 5.0-6.0% | 6-7% | 7-8% | |
Investments4 | ~5% | 6-7% across the Plan | ||
Free Cash Flow | ~€0.5bn | ~€0.6bn | ~€0.9bn | |
Group | Adjusted Net Income | €0.6-0.8bn | ~€0.7bn | ~€0.9bn |
Adjusted diluted EPS | N/A | ~€2.4 per share | >€3 per share |
Notes:
1 Including the Fire Fighting Business Unit.
2 Excluding the Fire Fighting Business Unit since, as mentioned above,
3 Including translation effects.
4 Property, plant and equipment and intangible assets (incl. capitalised R&D); as a percentage of Net Revenues.
Non-EU-IFRS Financial Information
- Adjusted EBIT: is defined as EBIT before restructuring costs and non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
- Adjusted Net Income/(Loss): is defined as profit/(loss) for the period, less restructuring costs and non-recurring items, after tax.
- Adjusted Diluted EPS: is computed by dividing Adjusted Net Income/(Loss) attributable to
Iveco Group N.V. by a weighted-average number of Common Shares outstanding during the period that takes into consideration potential Common Shares outstanding deriving from theIveco Group share-based payment awards, when inclusion is not anti-dilutive. WhenIveco Group provides guidance for adjusted diluted EPS, the Group does not provide guidance on an earnings per share basis because the EU-IFRS measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year end. - Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits.
- Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) profit (loss) before income taxes, less restructuring expenses and non-recurring items.
Net Cash (Debt) andNet Cash (Debt) of Industrial Activities:Net Cash (Debt) is defined as total Debt plus Derivative liabilities, net of Cash and cash equivalents, Derivative assets and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and financial receivables from CNH Industrial deriving from financing activities and sale of trade receivables.Iveco Group provides the reconciliation ofNet Cash (Debt) to Total (Debt), which is the most directly comparable EU-IFRS financial measure included in the Group’s consolidated statement of financial position. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities usingNet Cash (Debt) of Industrial Activities.- Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in property, plant and equipment and intangible assets; as well as other changes and intersegment eliminations.
- Available Liquidity: is defined as cash and cash equivalents, including restricted cash, undrawn medium-term unsecured committed facilities, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties), and financial receivables from CNH Industrial deriving from financing activities and sale of trade receivables.
Cautionary Statement
Statements other than statements of historical fact contained in this press release, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are difficult to predict and/or are outside the Company’s control. If any of these risks and uncertainties materialise (or they occur with a degree of severity beyond the Company’s predictions and/or expectations) or other assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements, which are sometimes based upon estimates and data received from third parties (such estimates and data being often revised). Except as otherwise required by applicable rules,
Media Contacts:
E-mail: mediarelations@ivecogroup.com
Investor Relations:
E-mail: investor.relations@ivecogroup.com
Attachment
- 20240315_PR_Iveco_Group_Updated_Guidance_and_SBP_Targets
Source:
2024 GlobeNewswire, Inc., source