TLDR
- Stellantis recorded a historic annual loss reaching €22.3 billion ($26.3B) for the 2025 fiscal year
- Electric vehicle strategy adjustments triggered €25.4 billion in asset impairments
- Management suspended the 2026 dividend payment while raising up to €5 billion through hybrid bond offerings
- Second-half 2025 net revenues climbed 10% with vehicle deliveries increasing 11% compared to the prior year
- Management projects positive industrial free cash flow beginning in 2027, while tariff expenses reach €1.6B for 2026
Stellantis disclosed a full-year 2025 net loss totaling €22.3 billion ($26.3 billion), marking the first annual deficit since the automaker’s creation in 2021.
The performance represents a dramatic shift from the €5.5 billion profit achieved in 2024.
Asset impairments totaling €25.4 billion dominated the financial results, with €22.2 billion of these charges recorded during the second half of the year and disclosed on February 6.
CEO Antonio Filosa connected the impairments to miscalculations regarding electric vehicle market adoption rates. “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition,” he stated.
Stellantis has become part of a broader automotive industry trend of scaling back electric vehicle ambitions. GM, Ford, and Honda have recorded comparable impairment charges during recent reporting periods.
The writedowns also stem from vehicle quality challenges that Filosa traced back to aggressive cost reduction initiatives implemented under previous CEO Carlos Tavares.
Cash outlays associated with approximately €6.5 billion of these impairments will be distributed across four years beginning in 2026.
On an adjusted operating basis, Stellantis posted a loss of €842 million for the complete fiscal year, contrasting with a €8.65 billion profit during 2024.
H2 2025 Shows Some Recovery
Certain metrics demonstrated encouraging trends. Net revenues during the second half of 2025 increased 10% year-over-year, reaching €79.25 billion.
Vehicle shipments during this timeframe expanded by 11%, with North America delivering the strongest performance at 2.8 million consolidated units.
Stellantis attributed these results to enhanced operational efficiency and more rigorous commercial discipline.
Dividend Suspended, Bonds Issued
Management confirmed the elimination of dividend payments for 2026, consistent with earlier communications to investors.
To strengthen its financial position, Stellantis completed an issuance of up to €5 billion in hybrid bonds.
Management reaffirmed its 2026 financial outlook: mid-single-digit percentage expansion in net revenues alongside a low-single-digit adjusted operating margin.
Positive industrial free cash flow generation remains targeted for 2027.
Tariff-related expenses are forecast to increase to €1.6 billion in 2026, rising from €1.2 billion incurred during 2025.
Analysts at Citi characterized the results as an “obvious low point” but noted they see “better quality and less risk in other European and US OEMs.”
Milan-listed shares declined approximately 0.3% during Thursday morning trading, following a roughly 20% drop after the February 6 impairment disclosure.
The stock has decreased more than 30% year-to-date and reached a record low of €5.73 on February 6.
Stellantis’s 2026 tariff vulnerability of €1.6 billion underscores its significant dependence on the U.S. market as its principal profit generator.
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