Stellantis NV recently reported its first full-year loss since the 2021 merger, attributing the decline to a shift away from aggressive electric vehicle (EV) targets. The Netherlands-based automaker emphasized a new focus on customer choice and a reset of its product and powertrain strategy as driving factors behind the strategic shift.
In terms of financial performance, Stellantis recorded net revenue of €153.5 billion for the full year, a 2% decrease from 2024. This decline was primarily due to foreign exchange headwinds and pricing decreases in the first half of the year. The company posted a net loss of €22.3 billion, a significant contrast to the €5.5 billion profit reported in the previous year. This loss was largely driven by €25.4 billion in one-time charges related to the strategic shift away from EV targets.
Adjusted operating income for Stellantis was negative €842 million, resulting in an AOI margin of -0.5%. Additionally, industrial free cash flow fell to negative €4.5 billion. However, the second half of 2025 showed signs of stabilization under the company’s renewed leadership team. Net revenues grew by 10% year-over-year, while industrial free cash flow improved by approximately 50% from the first half of the year and 73% from the second half of 2024.
Stellantis CEO Antonio Filosa acknowledged the challenges faced in 2025, stating, “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.” Filosa also highlighted positive progress in the second half of the year, including improvements in quality, successful product launches, and a return to top-line growth.
Looking ahead to 2026, Stellantis reiterated its guidance, projecting a mid-single-digit percentage increase in net revenues, a low-single-digit AOI margin, and improved industrial free cash flow year-over-year. The company anticipates sequential improvement from the first half to the second half of the year.
Investors reacted positively to Stellantis’ turnaround efforts, with US-listed shares trading more than 3% higher in the early afternoon on Thursday at around $8. The company’s focus on customer choice and strategic realignment away from aggressive EV targets appears to be resonating with stakeholders as Stellantis navigates the evolving automotive landscape.
