CNH Industrial Sets Truck Maker Iveco's Targets Through 2026

   By Ed Frankl

CNH Industrial NV on Thursday outlined its targets through 2026 for its truck and bus maker Iveco, which is being spun off and listed in Milan in January.

CNH first said in 2019 that it would split Iveco and its agriculture-and-construction business, with the demergered Iveco a pure player focused on commercial and specialty vehicles.

The company said it aims for Iveco to reach 2026 net revenue in its industrial activities business of between 16.5 billion and 17.5 billion euros ($18.68 billion-$19.81 billion), a compound annual growth rate up to 5.0% and up from EUR11.8 billion it posted 2019.

It also guided Iveco to post an adjusted earnings before interest and taxes margin in 2026 of 5%-6% in 2026, from 3.6% in 2019 and and adjusted net profit of between EUR600 million and EUR800 million, compared with around EUR300 million in 2019.

Targeted free cash flow from industrial activities would soar to around EUR500 million in 2026 from EUR30 million in 2019, CNH said.

CNH said shareholders would receive one new Iveco share for every five CNH shares in the planned spinoff, expected on Jan. 3, 2022, as previously announced.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

November 18, 2021 09:11 ET (14:11 GMT)

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