Stellantis earnings outlook: Following a $26 billion impairment, is a recovery on the horizon?

Stellantis Set to Release 2025 Financial Results Amid Major Turnaround Efforts

Stellantis (STLA), one of the world’s largest automakers, is scheduled to announce its financial performance for the second half and full year of 2025 early Thursday. The results will offer a closer look at the company’s ongoing transformation, which follows a significant write-down related to its electric vehicle (EV) strategy.

Revenue Outlook and Financial Projections

The company, which owns well-known brands such as Ram, Jeep, Fiat, and Alfa Romeo, recently projected that its net revenue for the second half of 2025 will fall between 78 billion and 80 billion euros ($91.87 to $94.23 billion). This marks an increase from the 71.86 billion euros ($84.64 billion) reported during the same period last year.

Despite the expected revenue growth, Stellantis anticipates an adjusted operating income (AOI) loss of 1.2 billion to 1.5 billion euros ($1.41 billion to $1.77 billion) for the second half of 2025. This is a sharp reversal from the 185 million euro ($218 million) profit recorded in the second half of 2024, and a dramatic decline from the 10.2 billion euro ($12 billion) profit achieved in 2023.

Impact of EV Strategy Shift

These challenging results follow Stellantis’s recent announcement of a 22.2 billion euro ($26 billion) charge tied to its EV business. The company plans to make cash payments totaling 6.5 billion euros ($7.7 billion) over the next four years, with 14.7 billion euros ($17.34 billion) in charges to be reflected in the second half of 2025. However, these charges will not affect the company’s adjusted operating income.

According to CEO Antonio Filosa, the charges stem from Stellantis’s decision to scale back its ambitious EV targets. He explained that the costs mainly result from overestimating the speed of the energy transition, which did not align with the actual needs and preferences of many customers.

The write-down also involved canceling the planned Ram 1500 BEV and battery manufacturing facilities in Italy and Germany, as well as impairments to several EV platforms. The largest portion of the charges was attributed to adjusting production plans to better match consumer demand and responding to new U.S. emissions standards, which have led to lower expectations for battery electric vehicle sales.

Stock Performance and Recent Sales

Following the announcement of the EV-related charge on February 6, Stellantis shares plunged 25% and have remained near multi-year lows as the company prepares to release its latest results.

Earlier this month, Stellantis reported that consolidated shipments for the fourth quarter of 2025 reached 1.5 million units, a 9% increase from the previous year. This growth was driven primarily by the North American market, where shipments surged 43% compared to the same period in 2024.

Stellantis CEO Antonio Filosa stands beside a Jeep Cherokee during the Detroit Auto Show on January 14. (Reuters/Rebecca Cook)

Combined sales of the Ram 1500 equipped with the Hemi V-8 engine and the updated Jeep Cherokee hybrid accounted for over 30% of the year-over-year growth. This supports Filosa’s new “freedom of choice” approach to powertrains, which emphasizes offering a variety of options to meet diverse customer needs.

European Market and Leadership Changes

In the second half of 2025, customer orders in Enlarged Europe rose by 13% year over year, with fourth-quarter orders up 23%. Stellantis maintained its position as the second-largest automaker in Europe and led the hybrid segment. However, overall shipments in the region declined by about 4% in the fourth quarter, with Peugeot experiencing lower volumes ahead of upcoming model updates.

Antonio Filosa, who became CEO in June 2025 after previously serving as COO for the Americas, has been at the helm for less than a year. Under his leadership, Stellantis has pledged $13 billion in U.S. investments over four years, creating more than 5,000 jobs and launching several new vehicles. Filosa has highlighted the ramp-up in Ram 1500 HEMI production, projecting an additional 100,000 units to be produced and sold in 2026, which he described as a significant profit driver for the company.

Looking Forward

• Stellantis expects net revenue to grow by a mid-single-digit percentage in 2026.
• The company is targeting a low-single-digit adjusted operating margin for the year.
• Stellantis aims to return to positive industrial free cash flow by 2027.

At the end of 2025, Stellantis reported industrial liquidity of approximately 46 billion euros, representing 30% of net revenues and providing a solid financial cushion. The board has also approved the issuance of up to 5 billion euros ($5.9 billion) in non-convertible hybrid bonds.