In a moment of profound restructuring in the European defence sector, Iveco Group is preparing for an operation that could reshape its industrial structure: the sale of the Defence division. The announcement came in February 2025 from CEO Olof Persson, during the presentation of the previous year’s financial results. Along with Idv, the group is also considering spinning off the Astra brand, which specialises in heavy-duty trucks, in a bid to simplify its corporate structure, strengthen its strategic focus, and unlock value for each of its activities.
The decision comes in a favourable context, with European military spending on the rise and defence assets becoming increasingly attractive. Iveco’s military division is indeed considered a family jewel: in 2024, it generated an operating margin of 10%, the only division in the group to reach double digits, while revenues grew by 15% and profits saw a 37% jump. Further bolstering the division’s strength is a long-term contract signed with the Italian Army for the supply of over 1,450 vehicles by 2038.
The group has enlisted Goldman Sachs to manage the process, which could be completed by the end of 2025. The options being considered include a separate stock market listing or a direct sale to strategic or financial buyers. Among the interested parties, two major US funds have reportedly emerged in recent weeks: Bain Capital, based in Boston and already active in complex industrial investments, and Kps Capital Partners, specialising in the turnaround of manufacturing companies. Both are said to be evaluating offers for Idv, in an environment of high interest in European defence assets, also fuelled by the European Commission’s announcement of plans to increase the joint military budget.
But the interest is not limited to the United States. Leonardo, the leading Italian defence group with public control, has long been in talks with Iveco. According to rumours, the Italian government would prefer a solution that keeps control of the unit within the national perimeter. Leonardo is also considering a joint offer with Rheinmetall, a German group with which it already collaborates in the production of combat vehicles.
Other names are circulating with increasing insistence, albeit unofficially: Knds, the Franco-German alliance between Nexter and Krauss-Maffei Wegmann, which is facing political obstacles; the Czech group Csg, already present in Italy through the acquisition of Armi Perazzi; and lastly, British firm Bae Systems, which is closely monitoring developments.
The sale of the defence division would mark the second step in Iveco’s rationalisation strategy, following the sale of its subsidiary Magirus, which operates in the fire truck sector. The operation could bring significant resources into the group’s coffers, which would also be useful for strengthening its core activity in a year—2024—in which overall revenue fell to 15 billion euros, 600 million less than in 2023. There are also growing rumours of Chinese interest in Iveco’s main business, industrial vehicle production, which has long had industrial collaborations in the country, such as with Nanjing Automobile Corporation and Saic. However, the current geopolitical climate would not favour such a solution.
