Stellantis stock jumps despite $26.3B loss, as improving second-half results mark first turnaround
Big Three automaker Stellantis ( STLA ) reported its biggest full-year loss after taking a $26 billion EV-related charge, but saw better second-half results, suggesting the company’s turnaround under CEO Antonio Filosa may be working.
Stellantis — which counts brands like Ram, Jeep, Fiat, and Alfa Romeo in its product portfolio — reported second-quarter revenue of 79.25 billion euros ($93.47 billion), in the range of 78 to 80 billion euros ($91.87 to $94.23 billion) above the top forecast. of 6 billion euros (10 billion euros) and 10 billion euros reported last year.
Stellantis posted second quarter adjusted earnings (AOI) loss of 1.38 billion euros ($1.63 billion), also in the range of 1.2 billion to 1.5 billion euros ($1.41 billion to 1.77 billion), a reversal of the quarter’s 185 million euros ($1 billion 218) reported a second quarter decrease of 2 million euros. 10.2 billion euro ($12 billion) profit reported in 2023.
Stellantis stock jumped 6% in early trading in New York.
Global shipments also improved in the second quarter, with the company seeing an 11% jump to 277K units and all regions reporting higher volumes.
For the full year, Stellantis reported a net loss of 22.3 billion euros ($26.3 billion), due to 25.4 billion euros ($29.96 billion) of “extraordinary charges,” the company said.
“Our results for the full year 2025 show the cost of overestimating the speed of the energy transition and the need to reset our business in terms of the freedom of our customers to choose from a complete list of technologies for the use of electric power, hybrids and interior jewelry,” said CEO Antonio Filosa in a statement.
Read more: Live posting of corporate earnings
Looking ahead, Stellantis expects net income to increase in the mid-single digits through 2026, with an AOI margin in the low single digits. The company aims to return to industry-free cash flow by 2027, however it estimates total annual tax costs at 1.6 billion euros ($1.9 billion), which will be weighted by AOI.
The results come after the company disclosed an EV-related charge of 22.2 billion euros ($26 billion) earlier this month. Cash payments of 6.5 billion euros ($7.7 billion) will be paid over the next four years, and the total cost of 14.7 billion euros ($17.34 billion) will be taken into account in the company’s results for the second half of 2025, Stelantis said. The cost will not impact the company’s adjusted operating income, however.
The lawsuits were a direct result of the company’s abandonment of its previous EV goals, said CEO Antonio Filosa, adding that they “significantly reflect the cost of overestimating the pace of the energy transition that has distanced us from the needs, means and desires of many real-world car buyers.”
