Stellantis (NYSE:STLA) management used its preliminary second-half 2025 results call to outline what CEO Antonio Filosa described as a “decisive reset” aimed at restoring profitable growth, while CFO João Laranjo detailed significant charges tied to product and electrification plan changes, supply-chain resizing, and warranty provisions.
Management frames a “reset” around regions, products, and quality
Filosa said the company is “resetting” its organization by empowering regional teams to speed decision-making and execution, while also working to improve relationships with stakeholders including employees, partners, dealers, suppliers, governments, and unions. He said Stellantis is also resetting its product plan and EV supply chain “to reflect much more real customer demand and shifting regulation,” following what he called an initial overestimation of the pace of electrification adoption in certain regions.
Product cadence and early demand indicators
Filosa said Stellantis launched 10 all-new products globally in 2025 and pointed to several high-profile introductions and updates, including the return of the HEMI V8 to the Ram 1500 pickup and a plan to “increase HEMI production a lot in 2026.” In Europe, he noted progress in the Smart Car lineup, citing the Fiat Grande Panda as an example, and said the company launched the Fiat 500 Hybrid in Italy.
He also highlighted a recovery of “past delays” with multiple fourth-quarter 2025 launches, including the Jeep Cherokee Hybrid. Filosa called Cherokee a “fundamental player” in the U.S. midsize SUV segment, which he said exceeds 3 million units annually. He added that the Dodge Charger i6 SIXPACK, together with the Dodge Charger Daytona BEV, was recently awarded Car of the Year for North America.
On forward launches, Filosa said Stellantis expects in the first half of 2026 to launch the Ram 1500 TRX and the all-electric Jeep Recon, and referenced additional launches including a new Jeep Grand Wagoneer and the Fiat Grande Panda.
Shipments, orders, and market share commentary
Filosa said global shipments increased 11% in “half 2025 versus half 2024,” with North American shipments up 39% over the same comparison. In Europe, he said Stellantis is retaining leadership in the “all-hybrids market,” the B segment, and in light commercial vehicles. He added that South America and the Middle East and Africa continued to grow.
Management repeatedly pointed to order momentum. Filosa said order intake in Europe rose 13% in half 2025 compared with half 2024, and was up 23% in the fourth quarter of 2025 versus the same period of 2024. In North America, he said the order book is up more than 150%, driven by demand for new Ram, Jeep, and Dodge products. He cited more than 60,000 year-to-date orders for the 2026 model year Ram 1500 with the HEMI V8 and said planned 2026 production for the recently launched two-door Dodge Charger SIXPACK Scat Pack was sold out.
Addressing U.S. market share questions, Filosa said Stellantis’ market share in the U.S. and North America was up in January 2025 versus January 2024 across segments and channels, including retail and fleet, as well as Canada and Mexico. He said U.S. retail share was also higher in January 2025 versus December 2024, while fleet did not rise in that month-to-month comparison due to production seasonality and constrained fleet supply early in the year. Filosa said new products such as the Cherokee (built in Toluca, Mexico) and Charger (built in Canada) would start appearing more meaningfully in dealer inventory from late February and March, respectively, and stated that Stellantis expects U.S. market share to grow in 2026.
Charges excluded from AOI and preliminary H2 2025 results
Laranjo announced EUR 22 billion of charges excluded from adjusted operating income (AOI), broken into three categories:
- EUR 14.7 billion related to product plans, including EUR 2.9 billion of write-offs for canceled products and EUR 6.0 billion of platform impairments, which he said were primarily due to “substantially reduced volume and profitability expectations for BEV products.” This bucket also included approximately EUR 5.8 billion in projected cash payments over the next four years.
- EUR 2.1 billion related to resizing the EV supply chain, including EUR 700 million in projected cash payments over the next four years.
- EUR 5.4 billion in other items, including EUR 4.1 billion from a change in estimate for contractual warranty provisions and EUR 1.3 billion of restructuring and other charges.
He said the “vast majority” of charges related to necessary corrective actions were taken in 2025.
For the second half, Stellantis reported preliminary ranges and drivers. Laranjo said revenues rose 10% year-over-year at the midpoint on 11% higher consolidated shipments. However, AOI was negative in the range of EUR 1.2 billion to EUR 1.5 billion, and industrial free cash flow was negative in the range of EUR 1.4 billion to EUR 1.6 billion. He noted that the second-half cash outflow represented about half of the roughly EUR 3 billion negative industrial free cash flow reported in the first half of 2025.
Laranjo attributed second-half AOI underperformance versus expectations to specific items totaling EUR 2.1 billion of negative impact, despite what he described as improvements in core drivers like volumes, price, industrial efficiency, and purchasing. He detailed several cost headwinds:
- EUR 700 million higher year-over-year warranty expense (including EUR 500 million tied to the warranty estimate change for vehicles shipped in the first half of 2025, and EUR 200 million related to a recall of certain discontinued PHEV models).
- EUR 500 million of compliance fine provisions related to European light commercial vehicle volumes, with the full-year 2025 accrual booked in the second half; he said this should be about EUR 300 million lower in the first half of 2026.
- EUR 500 million tied to a supplier bankruptcy and aluminum supply-chain disruption costs.
- EUR 400 million of negative impact in financial services (FX and other), tied to U.S. residual value impacts for discontinued PHEV models and a provision related to an industry-wide motor finance redress program in the U.K.
On warranty cash spend, Laranjo later said 2024 and 2025 spending was “basically flat” albeit at high levels, and he does not expect warranty spend in 2026 to rise versus 2025.
2026 outlook, capital actions, and liquidity
For full-year 2026 guidance, Laranjo said Stellantis expects:
- Net revenues to rise by a mid-single-digit percentage, with the largest contribution from North America.
- AOI margin in the low single-digit range, with improvement expected from the first half to the second half of 2026.
- Industrial free cash flow to improve year-over-year, including approximately EUR 2 billion in projected cash payments in 2026 (about EUR 1 billion expected in the first quarter).
Management said it expects a return to positive industrial free cash flow in 2027. In Q&A, Laranjo said 2026 free cash flow would be closely correlated with AOI improvements, with investment expected to be similar to 2025 and working capital expected to perform similarly despite the EUR 2 billion of payments, helped by higher volumes, inventory efficiency, and tariff credits expected to be collected in 2026.
On capital and balance sheet actions, Laranjo said the decision not to pay a dividend “reflects our net loss.” He also said the Board authorized issuance of up to EUR 5 billion of hybrid bonds, describing it as an additional instrument to preserve balance sheet strength and liquidity while Stellantis works back to positive industrial free cash flow. Management emphasized the importance of protecting investment-grade ratings and said hybrid funding costs are “at historical lows.”
Stellantis ended 2025 with industrial available liquidity of approximately EUR 46 billion, which management said equals 30% of net revenues and sits at the top end of its 25% to 30% target range. In response to an analyst question, management said it is not contemplating any equity raise.
Filosa said Stellantis will provide more detail on brand portfolio and industrial footprint considerations at an Investor Day scheduled for May 21, 2026, reiterating his view that the company’s global scale supports shared platforms and supplier synergies, while go-to-market execution should be regional and closer to customers.
About Stellantis (NYSE:STLA)
Stellantis N.V. is a global automotive manufacturer formed through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA, a transaction completed in January 2021. The company designs, manufactures and sells a broad portfolio of passenger cars, light commercial vehicles and related powertrains under a large number of well-known brands, including (but not limited to) Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram and Vauxhall. Stellantis also provides parts, accessories, service operations and branded aftersales support through legacy networks such as Mopar and regional dealer ecosystems.
In addition to vehicle manufacturing, Stellantis operates mobility- and software-related businesses and financial services.
