Stellantis shares dropped 4.3% on the Milan exchange on Tuesday after the automotive group reinstated its full-year guidance, only to fall short of investor expectations.
The company forecasted a modest recovery in the second half of 2025, projecting increased net revenue and a low-single-digit adjusted operating income margin despite mounting challenges, including US tariffs and weak performance in the North American market.
Stellantis had previously withdrawn its guidance in April amid uncertainty over US import duties.
The return of the forecast, though aimed at signalling renewed confidence, was met with caution on the markets.
After taking a more than 4% plunge in early trading, the stock was trading lower by 2.2% at 10:21 am.
Tariff headwinds continue to weigh on results
The Franco-Italian automaker reported a net loss of €2.26 billion for the first half of 2025, in line with preliminary figures released last week.
That compares to a €5.65 billion profit during the same period a year earlier.
First-half revenue fell 13% to €74.3 billion, and the adjusted operating income margin dropped to 0.7%.
Stellantis blamed the poor showing largely on tariffs, which shaved roughly $350 million from first-half earnings.
The total tariff impact for 2025 is estimated at €1.5 billion. A new trade deal between the US and EU eased some pressure by capping duties on European imports at 15%.
However, vehicles shipped from Mexico and Canada—key production hubs for Stellantis—still face 25% tariffs, though some exemptions apply under the nations’ free trade agreements.
North American revenues fell to just over €28 billion, trailing European revenue of €29.2 billion, as inventory reductions and slower sales hit its largest market.
New leadership plots recovery with product revamp
New CEO Antonio Filosa, a 25-year veteran of the company who took the helm in May and has already reorganised the senior leadership team, acknowledged that 2025 has been a challenging year so far.
He emphasised that Stellantis’ new leadership was prepared to take “tough decisions” to restore profitability.
“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” new CEO Antonio Filosa said in a statement.
Part of the recovery plan involves a product refresh.
Stellantis plans to launch 10 new models in 2025, including a new V8-powered Ram truck and an updated Jeep Compass.
Production of the hybrid Jeep Cherokee and Dodge Charger Sixpack will also resume after being paused since 2023.
Analyst views and future outlook
Despite these efforts, some analysts remain unconvinced.
Jefferies noted that the updated guidance came as no surprise following the earlier profit warning but called it “vague,” lacking the detail investors were hoping for.
“We stick to our view that 1H25 marked the lowest point in operating, but the qualitative indications on 2H appear less optimistic than both our and consensus expectations,” broker Equita said in regards to the free cash flow outlook.
Stellantis is banking on new products and operational restructuring to navigate a challenging landscape marked by slowing demand, rising costs, and trade friction.
The company forecast an improvement in industrial free cash flow in the second half, following a €3 billion cash burn in the first.
Filosa, who has already reshuffled the senior management team, will face analysts in his first earnings call as CEO.
He will be expected to provide more clarity on the recovery trajectory and explain how Stellantis intends to regain its footing in the highly competitive North American market.
The road ahead remains uncertain, but Stellantis is signalling that it is not standing still in the face of adversity.
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