Outcome of the Initial Period in 2025
Stellantis, the multinational automobile manufacturing company, has reported a challenging first half of 2025, with a significant decline in financial performance compared to the same period last year.
The company's net revenues for H1 2025 stood at €74.3 billion, a 13% drop from H1 2024. This decline was accompanied by a net loss of €2.3 billion, a stark contrast to the €5.6 billion profit recorded in the same period last year. Adjusted operating income (AOI) was €0.5 billion with a margin of 0.7%, significantly below the previous year's €8.5 billion and 10.0%, respectively.
The decline was primarily due to year-over-year drops in North America and Enlarged Europe, while growth in South America partially offset these losses. In North America alone, shipments fell 23%, net revenues dropped 26%, and AOI margin plunged from 11.4% to -3.4%, affected by tariff costs, product lineup gaps during model transitions, higher sales incentives, and reduced fleet orders.
Additional challenges included an estimated net tariff impact of €1.5 billion for 2025, with €0.3 billion incurred in H1, which pressured margins and pricing strategies. Industrial free cash flows were negative at (€3.0) billion, mainly due to capital expenditures and R&D spending despite modest AOI generation. However, inventories rose slightly (+1%) compared to year-end 2024 despite an expanded product range and sequential increases in shipments (+5%).
Despite these challenges, Stellantis CEO Antonio Filosa has expressed cautious optimism for the second half of 2025. The company expects sequential improvement in net revenues, low-single-digit operating profit margins, and better free cash flow, assuming tariff conditions remain stable. This positive outlook is supported by a revitalized product lineup with 10 new model launches planned for the year and a new leadership team focused on recovery.
In other news, Stellantis has announced the return of several popular models to production. The Jeep Cherokee hybrid and the ICE Dodge Charger SIXPACK will return to production in H2 2025. The first trucks of the 2026 Ram 1500 will also arrive at dealerships in H2 2025, featuring the return of the 5.7-liter HEMI® V-8 engine. Additionally, the four-door Charger Daytona will be produced in H2 2025.
Peugeot has brought back its GTi franchise with a new 208 GTi model, and the Fiat Titano pickup truck is now available in the Argentine market with a new engine and transmission.
Stellantis has re-established financial guidance for H2 2025, expecting increased net revenues, low-single digit AOI profitability, and improved Industrial FCF results. A live webcast and conference call will be held on July 29, 2025, to present Stellantis' First Half 2025 Results, with the webcast and recorded replay accessible under the Investors section of the Stellantis corporate website.
- The challenging financial situation at Stellantis in H1 2025 impacted not only their automobile manufacturing business but also their industry's financial performance, as a significant drop in net revenues and a net loss were reported.
- In an effort to recover and boost profits, Stellantis has announced that popular models such as the Jeep Cherokee hybrid, the ICE Dodge Charger SIXPACK, the first trucks of the 2026 Ram 1500, and the four-door Charger Daytona will return to production, focusing on the finance section of the company by hopefully increasing sales and revenues in the second half of 2025.
