Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
Add as preferred source on GoogleIveco's annual profit dropped 28% due to weak truck demand and plant delays, as Tata Motors prepares for acquisition.
By Laura Contemori
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.
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.
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)
Operating profit is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations and is an important measure of financial performance.
Adjusted operating profit is a measure of a company's profitability that excludes certain one-time expenses or income. This provides a clearer picture of ongoing operational performance.
European truck demand refers to the market need for trucks in Europe, influenced by factors such as economic conditions, transportation needs, and industry trends. A decline in this demand can impact manufacturers' financial performance.
A takeover is the acquisition of one company by another, where the acquiring company gains control over the target company. This can be friendly or hostile, depending on the target company's response.
Delays in production refer to interruptions or slowdowns in the manufacturing process, which can be caused by various factors such as supply chain issues, labor shortages, or equipment failures, affecting overall output and profitability.
Explore more articles in the Finance category
