Summary
Stellantis reported a €20.1 billion net loss for the second half of 2025, driven by large writedowns linked to its scaled-back electric vehicle strategy. Despite the setback, management reaffirmed 2026 targets and guided to a return to positive adjusted operating income in North America and Europe this year.
Key numbers (H2 2025 and full-year impacts)
- H2 2025 net loss: €20.1 billion.
- H2 2025 adjusted operating loss: €1.38 billion (in line with preliminary figures).
- Total 2025 writedowns: €25.4 billion, including €22.2 billion in H2.
- Cash portion of charges: about €6.5 billion over four years starting in 2026.
- No dividend to be paid this year.
Market reaction
Shares rose as much as 6.9% and were up 5.2% by 1615 GMT, recovering part of the drop since Feb. 6 when the company first warned of multi-billion-euro charges tied to its EV strategy shift.
Management commentary and drivers
- CEO Antonio Filosa cited a slower, more complex EV market transition as the key factor, calling 2025 results “the cost of overestimating the pace of the energy transition.”
- Writedowns were also influenced by vehicle quality issues that Filosa linked to past cost-cutting under former CEO Carlos Tavares.
- Order books in North America and Europe ended 2025 at roughly three months of sales.
Outlook and guidance
- 2026 targets reiterated: mid-single-digit increase in net revenues and a low-single-digit adjusted operating margin.
- Return to positive adjusted operating income in North America and Europe expected in 2026.
- Industrial free cash flow expected to turn positive only in 2027.
- U.S. tariff costs projected to rise to €1.6 billion in 2026 (from €1.2 billion in 2025).
- Capital markets day set for May 21.
Context
Stellantis’ recalibration mirrors a broader industry moderation after aggressive EV bets met uneven demand, higher costs, and shifting policy signals in the U.S. and Europe. The company’s second-half writedown reflects reduced EV ambitions and reassessment of programs and assets aligned with a faster EV transition than current demand supports.
What to watch next
- Execution on the 2026 rebound, particularly restoring profitability in North America and Europe.
- Details at the May 21 capital markets day on product mix, investment pacing, quality improvements, and cost actions.
- Impact of rising U.S. tariffs, currency moves, and regional pricing/incentive trends on margins.
