Automobile giant Stellantis on Thursday announced its first annual loss, following significant write-downs amidst a major change in strategy.
The global conglomerate, which encompasses well-known brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a net loss of 22.3 billion euros ($26.3 billion) for the full year of 2025, contrasting with a profit of 5.5 billion euros in the previous year.
Stellantis indicated that the net loss was influenced by write-downs totaling 25.4 billion euros, as the company significantly revises its electric vehicle strategy.
This outcome coincides with a trend among manufacturers worldwide who are reassessing their EV objectives. Car manufacturers including GM, Ford, and Honda have all revealed substantial charges related to EV investments recently. This movement highlights the evolving factors influencing the transition to complete electrification.
“Our overall results for 2025 indicate the consequences of over-estimating the speed of the energy transition and the necessity to realign our business according to our customers’ freedom to select from a comprehensive array of electric, hybrid, and internal combustion options,” stated Stellantis CEO Antonio Filosa.
“In 2026, our priority will be on bridging the execution gaps of the past, enhancing our drive towards profitable growth,” he added.
Stellantis confirmed it would pause its dividend for 2026, as previously indicated, and has issued up to 5 billion euros in hybrid bonds. The company also reaffirmed its forecasts for 2026, which include a mid-single-digit increase in net revenues and a low-single-digit adjusted operating margin.
Shares of Stellantis listed in Milan fell by 0.8% following the announcement. The stock has decreased by over 31% this year to date.
Additional earnings details:
- Adjusted operating loss of 842 million euros in 2025, compared to an adjusted operating income of 8.65 billion euros in 2024.
- Estimated net tariff expenses of 1.6 billion euros in 2026.
- Stellantis anticipates a positive industrial free cash flow in 2027.
During the latter half of 2025, Stellantis demonstrated a “solid” performance, reporting consolidated shipments at 2.8 million units, with North America contributing significantly.
Net revenues increased by 10% to 79.25 billion euros in the latter half of 2025 compared to the same timeframe a year prior.
These outcomes reflect the early effects of heightened operational efficiencies, disciplined commercial strategies, and the robustness of the company’s global brand portfolio, according to Stellantis.
