Stellantis (STLAM) Q4 2025 TU earnings summary

Executive summary

• Announced a decisive strategic reset in H2 2025, empowering regional teams, overhauling stakeholder relationships, and aligning product and EV supply chain with customer demand and regulatory shifts.

• New leadership and organizational structure implemented, with over 2,000 engineers recruited in 2025, mainly in North America, and significant improvements in quality KPIs.

• Launched 10 new products in 2025, including key models in North America and Europe, expanded Smart Car lineup, and canceled unprofitable models.

• Early benefits included strong order intake, robust shipment growth, and improved initial quality metrics.

• Largest U.S. investment announced: $13 billion over four years, 5,000+ jobs, and 5 new vehicles.

Financial highlights

• H2 2025 net revenues estimated at €78–€80 billion, up 8–11% year-over-year, with consolidated shipments up 11% to 2.8 million units, led by 39% growth in North America.

• Adjusted Operating Income (AOI) for H2 2025 was negative €1.2–€1.5 billion; industrial free cash flow was negative €1.4–€1.6 billion, an improvement from H1 2025.

• Reported net loss of €19–€21 billion in H2 2025, driven by €22.2 billion in charges, including €14.7 billion for product plan changes, €2.1 billion for resizing the EV supply chain, and €4.1 billion for warranty adjustments.

• Adjusted operating income margin declined to (1.5)%–(1.9)% from 0.7% in H1 2025.

• Market share in the U.S. increased to 7.9% in H2 2025, up 60 basis points sequentially.

Outlook and guidance

• 2026 guidance projects mid-single digit percentage increase in net revenues, low single-digit AOI margin (1–3%), and improved industrial free cash flow.

• Positive industrial free cash flow expected in 2027, with €2 billion in 2026 payments related to H2 2025 charges, half in Q1.

• No dividend to be paid in 2026 due to 2025 net loss; up to €5 billion in hybrid bonds authorized to preserve liquidity and investment grade rating.