Big Three automaker Stellantis (STLA) reported a massive full-year loss after taking a $26 billion EV-related charge, but saw improving second half (H2) 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 H2 net revenue of 79.25 billion euros ($93.47 billion), in range of 78 billion to 80 billion euros ($91.87 to $94.23 billion) forecast, and 10% higher than the 71.86 billion euros ($84.64 billion) reported a year ago.
Stellantis posted a second-half adjusted operating income (AOI) loss of 1.38 billion euros ($1.63 billion), also in range of the 1.2 billion to 1.5 billion euros ($1.41 billion to 1.77 billion) forecast, a reversal of the 185 million euro ($218 million) gain reported in the second half of 2024, which itself was a massive drop compared to the 10.2 billion euro ($12 billion) profit reported in 2023.
Global shipments also improved in H2, with the company seeing an 11% jump to 277K units, with every region 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 “unusual charges,” the company said.
Stellantis stock was little changed in pre-market trade in New York.
“Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of 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 in a statement.
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The results came after the company disclosed a 22.2 billion euro ($26 billion) EV-related charge earlier this month. Cash payments of 6.5 billion euros ($7.7 billion) will be paid out over the next four years, and charges totaling 14.7 billion euros ($17.34 billion) will be taken against the company’s 2025 second-half results, Stellantis said. The charges won’t impact the company’s adjusted operating income, however.
The charges were a direct consequence of the company abandoning its earlier aggressive EV targets, CEO Antonio Filosa said, adding that they “largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.”
The write-down also included cancellations of the planned Ram 1500 BEV and battery gigafactories in Italy and Germany, as well as impairments to several EV platforms. The largest portion of the charges was related to realigning production plans with customer preferences, plus the impact of new US emissions regulations that reflect significantly reduced expectations for battery electric vehicle products.
