MILAN (Reuters) – Truck and bus maker Iveco Group targets industrial revenues of between 16.5-17.5 billion euros ($18.7-$19.8 billion) in 2026 as parent CNH Industrial prepares to spin off the unit to focus on farm machinery and construction equipment.
The move mirrors a similar decision by Daimler, whose truck operations will list next month after being spun off, and follows the listing in 2019 of Volkswagen’s truck unit Traton.
Shareholders in CNH are due to approve the de-merger on Dec. 23, paving the way for Iveco shares to start trading on Jan. 3.
Iveco reported revenues of 10.4 billion euros ($11.8 billion) in 2020, down from 11.8 billion euros in 2019 before the pandemic struck.
The 2026 target translates into an average compound annual growth rate of up to 5%, the company said in a statement.
In the listing prospectus, Iveco had said its spin-off from CNH would help the two groups take part in ongoing consolidation in the industry.
Iveco, which also makes specialty and defence vehicles as well as powertrains, forecast an adjusted operating profit margin for industrial activities of between 5.0-6.0% in 2026, up from 3.6% in 2019.
Iveco also said it had committed to reach carbon neutrality by 2040.
($1 = 0.8819 euros)
(Reporting by Valentina Za; editing by Agnieszka Flak)
