Shortly after the announcement by the President of the European Commission, Ursula Von Der Leyen, regarding an increase in public spending at the community level in the military sector, shares of the major corporations operating in this field saw a strong surge on the stock market. At the same time, acquisition rumours resurfaced, including that of Iveco Defence Vehicles, the branch of Iveco specialised in manufacturing military industrial vehicles. This sale has been discussed for some time. Exor, which holds 42% of Iveco's voting rights, had already attempted to sell it in 2024 to the giant Leonardo, but without success, seemingly due to the asking price, close to one billion euros, which was considered excessive.
At the beginning of March 2025, the possibility of an agreement between Iveco and Leonardo re-emerged, and this is no coincidence following Brussels' statements on military spending. However, the first step was already taken on 7 February by Iveco's Chief Executive Officer, Olof Persson, when presenting the previous year's financial results. Persson announced the intention to spin off Iveco Defence Vehicles and Astra, the latter specialising in quarry and construction site vehicles, to form a new company. Such an operation is often carried out in anticipation of a partial or total sale.
This would be the second divestment by Iveco, following the sale of Magirus, which specialises in firefighting vehicles. It would provide the industrial vehicle manufacturer with significant liquidity, considering that its 2024 turnover of 15 billion euros was 600 million euros lower than the previous year. However, the defence division recorded a 15% increase in revenue and a remarkable 37% rise in profits. These figures enhance the value of Iveco Defence Vehicles, further bolstered by the contract signed with the Italian Army to supply 1,453 trucks by 2038. To gain a clear understanding of this division's value, the spin-off must first be completed, followed by an assessment of Iveco's strategy without these profitable activities.
