Stellantis (STLAM) Q4 2025 earnings summary

Executive summary

• 2025 marked a strategic reset with net revenues of €153.5 billion, significant non-cash losses, and €25.4 billion in unusual charges, mainly impairments and write-offs, as the company realigned product plans and prioritized customer-centricity.

• H2 2025 saw a return to top-line growth, with net revenues up 10% year-over-year and shipment increases across all regions, especially in North America and Europe.

• Major investments and product launches, including 10+ new vehicles and a focus on quality improvements, underpin the growth strategy for 2026.

• The company is executing a $13 billion investment plan in North America over four years to expand market coverage, renew its lineup, and create over 5,000 new jobs.

• Decisive corrective actions included resizing the EV supply chain, discontinuing the hydrogen fuel cell strategy, and workforce reductions.

Financial highlights

• Consolidated shipments reached 5.5 million units, up 1% year-over-year, with growth in most major regions but declines in Enlarged Europe.

• Net revenues for 2025 were €153.5 billion, down 2% year-over-year, mainly due to FX headwinds and H1 pricing declines.

• Adjusted operating loss was €842 million, with an AOI margin of -0.5%, reflecting early recovery stages and significant non-recurring items.

• Net loss of €22.3 billion, primarily non-cash, driven by €25.4 billion in unusual charges related to strategic shifts and regulatory changes.

• Industrial free cash flow was negative €4.5 billion for the year, but H2 showed a 50% sequential and 73% year-over-year improvement.

Outlook and guidance

• 2026 guidance targets a mid-single-digit percent increase in net revenues, low-single-digit AOI margin, and improved industrial free cash flows, with positive free cash flow expected in 2027.

• AOI in North America and Europe expected to turn positive in 2026, with North America as the main profit engine.

• Price environment expected to remain flat globally, with North America stable to slightly positive and Europe facing continued pressure.

• Estimated €1.6 billion in net tariff expenses for 2026.

• Sequential improvements anticipated from H1 to H2 2026.