Italy’s Iveco Group sees 20% revenue growth to 2028, eyes partnerships

TURIN, Italy, (Reuters) – Italian bus and truck maker Iveco Group forecast revenue growth of 20% by 2028 as it unveiled a new business plan on Thursday focused on an expanding product portfolio and industrial partnerships.

The company said its net revenues from industrial activities would rise to around 19 billion euros ($20.8 billion) in 2028 from 15.877 billion euros last year.

It sees its margin on adjusted operating profit (EBIT) from industrial activities increasing to between 7% and 8%, from 5.2% in 2023.

Milan-listed shares in the company extended gains after the five-year plan to 2028 was published, and were up 4.1% by 1220 GMT.

Iveco, the smallest among Europe’s truckmaking heavyweights Daimler Truck, Volvo and Traton, said it would extend and deepen its partnership with Hyundai Motor in electric heavy-duty trucks for the European market – regarding both battery-electric and hydrogen fuel-cell technologies.

It also announced a preliminary deal with Ford Trucks, the heavy commercial brand of Ford Otosan, for potential cooperation in developing heavy-duty truck cabins.

“Today we commit ourselves to a new plan, an acceleration of our product portfolio, stronger and more diverse partnerships, and a dialling up of our sustainability journey,” CEO Gerrit Marx said in a statement.

The truckmaker, controlled by Exor, the investing company of the Agnelli family, said it would invest 5.5 billion euros between this year and 2028, with a focus on energy transition, artificial intelligence & software defined vehicles as well as autonomous driving.

($1 = 0.9141 euros)

Reporting by Giulio Piovaccari, editing by Gavin Jones