Stellantis posts €22.3bn loss in 2025, signals strategic reset

Stellantis N.V. has reported a difficult set of full-year 2025 financial results, posting a net loss of €22.3 billion as the global automaker undertook a sweeping strategic reset to better align its product plans with customer demand and shifting regulatory realities.

Net revenues fell 2% year over year to €153.5 billion, pressured by foreign-exchange headwinds and pricing declines in the first half of the year. The company recorded €25.4 billion in unusual charges tied largely to resetting its product strategy, electric-vehicle supply chain and warranty provisions, as well as costs linked to previously announced workforce reductions in Europe.

Stellantis also posted an adjusted operating loss of €842 million, with an adjusted operating income (AOI) margin of minus 0.5%. Industrial free cash flow for the year was negative €4.5 billion.

Despite the full-year loss, Stellantis pointed to improving momentum in the second half of 2025 under its renewed leadership team. Net revenues returned to growth in the back half of the year, rising 10% year over year, while industrial free cash flow improved to negative €1.5 billion – about a 50% improvement versus the first half and a 73% improvement compared with the same period in 2024. Consolidated shipments climbed 11% to 2.8 million vehicles in the second half, with every region posting volume growth.

“Our 2025 full-year results reflect the cost of over-estimating the pace of the energy transition and the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” CEO Antonio Filosa said.

To protect its balance sheet, Stellantis said industrial available liquidity stood at €46 billion at the end of 2025. The board authorised the suspension of the 2026 dividend and approved the potential issuance of up to €5 billion in hybrid bonds to maintain financial flexibility as the company works through its turnaround.

The automaker is leaning into a broad new product wave in 2026, expanding coverage across North America, Enlarged Europe, South America, and the Middle East and Africa with additional powertrain choices, including internal combustion, hybrid and battery-electric options.

In North America, Stellantis is re-entering key segments with the Jeep Cherokee and Dodge Charger SIXPACK, while the Ram 1500 HEMI V8 and Express models are expected to add momentum. South America will see the Ram Dakota anchor the mid-size pickup segment, and in Europe, models such as the Citroën C5 Aircross BEV, Jeep Compass BEV, and Fiat 500 Hybrid aim to broaden appeal and improve mix.

As part of its February 2026 reset, Stellantis booked approximately €22.2 billion in charges in the second half of 2025, most of which were excluded from adjusted operating income. The move included resetting product plans and the EV supply chain to reflect customer demand, changes to warranty provisioning, and costs tied to workforce actions in Europe. Around €6.5 billion of the charges are expected to be paid in cash over the next four years.

The company also said early signs of operational improvement are emerging. Reported issues for vehicles in their first month of service have fallen by more than 50% in North America and by over 30% in Europe since the start of 2025, reflecting a renewed focus on quality and execution.

Looking ahead, Stellantis reaffirmed its 2026 guidance, projecting a mid-single-digit percentage increase in net revenues, a low-single-digit AOI margin, and improved industrial free cash flow for the year. The company expects performance to strengthen sequentially from the first half to the second half of 2026, as new products roll out and execution improves.