Stellantis (STLAM) Q2 2025 earnings summary

Executive summary

• H1 2025 was marked by a challenging environment, with net revenues of €74.3 billion, a 13% year-over-year decline, and a net loss of €2.3 billion, reflecting €3.3 billion in net charges and weak performance in North America and Europe, but sequential improvement from H2 2024 was achieved through new product launches and improved inventory discipline.

• Leadership changes included the appointment of Antonio Filosa as CEO in June 2025 and a new leadership team focused on recovery, profitable growth, and decisive actions such as ending unprofitable initiatives.

• Order books in North America and Europe increased, with North America up 14% year-over-year and 34% in the last six months, and retail order books in the U.S. up 90% year-over-year, reflecting improved dealer and customer engagement.

• The company is committed to gradual, sequential improvement in H2 2025, with a focus on growth, execution, and profitability, supported by new product launches and cost discipline.

Financial highlights

• Net revenues declined 13% year-over-year to €74.3 billion, mainly due to lower volume/mix, adverse pricing, and FX headwinds.

• Adjusted operating income (AOI) was €0.5 billion, with an AOI margin of 0.7%, down from 10% in H1 2024, impacted by volume, mix, pricing, FX, and €1.6 billion higher industrial costs.

• Industrial free cash flow was negative €3.0 billion, mainly due to low AOI and €1.3 billion working capital increase.

• Net profit was a loss of €2.3 billion, compared to a profit of €5.6 billion in H1 2024.

• Sequential improvement from H2 2024: shipment decline improved from -14% to -7%, and pricing headwinds lessened.

Outlook and guidance

• H2 2025 guidance expects net revenues to increase half-over-half, AOI margin in the low single digits, and improved industrial free cash flow.

• Guidance assumes current tariff and trade rules as of July 29, 2025.

• Tariff expenses for 2025 are expected at the upper end of €1–1.5 billion, with most impact in H2.

• Gradual, sequential improvement is anticipated, with a focus on new product launches and cost actions to offset headwinds.