Lead: Stellantis on February 26, 2026 reported full-year 2025 results showing net revenues of €153.5 billion, down 2% versus 2024, and a net loss of €22.3 billion largely driven by €25.4 billion of unusual charges tied to a strategic reset. The company said the reset re-centers product and powertrain choices around customer preferences and reflected FX headwinds and H1 pricing declines. Management highlighted recovery signs in H2 2025 — including a return to top-line growth and an improvement in industrial free cash flow — and affirmed 2026 guidance for progressive improvement.
Key Takeaways
- Net revenues: €153.5 billion in FY2025, down 2% from FY2024, primarily due to FX headwinds and net pricing declines in H1 2025.
- Net loss: €22.3 billion for FY2025, driven by €25.4 billion of full-year unusual charges tied to a strategic reset and regulatory adjustments.
- Adjusted operating loss (AOI): negative €842 million with an AOI margin of (0.5)%, reflecting specific one-off impacts.
- Industrial free cash flow (IFCF): negative €4.5 billion in FY2025; H2 2025 IFCF improved to negative €1.5 billion (≈50% better than H1 2025 and 73% better vs H2 2024).
- H2 2025 revenue momentum: Net revenues rose 10% year-over-year and consolidated shipments reached 2.82 million units (+11% YoY).
- Liquidity and capital actions: industrial available liquidity of €46 billion at year-end; Board suspended the 2026 dividend and authorized up to €5 billion of hybrid bond issuance.
- Product strategy: widened market coverage with new ICE, hybrid and BEV models (examples include Jeep Cherokee, Dodge Charger SIXPACK, Ram 1500 HEMI V8, Citroën C5 Aircross BEV).
- Guidance: 2026 outlook calls for mid-single-digit revenue growth, low-single-digit AOI margin and improved IFCF, with sequential gains expected from H1 to H2 2026.
Background
Stellantis is a global automaker managing a broad portfolio of brands and powertrain technologies. The company entered 2025 balancing investment in electrification with continuing internal combustion engine (ICE) demand across several regions. Over the prior years Stellantis invested heavily in EV supply chains and product plans anticipating faster uptake of battery electric vehicles; management now says that cadence was overestimated and required recalibration to align with customer choice and regional regulatory dynamics.
During 2025 Stellantis faced currency pressures and earlier commercial pricing trends that weighed on top-line performance in H1. The company’s renewed leadership team took decisive actions in the second half of the year to accelerate product launches, improve quality controls and restore dealer and supplier engagement. Those operational moves coincided with a rebound in shipments and revenue growth in H2, particularly in North America where inventory normalization supported higher volumes.
Main Event
For FY2025 Stellantis reported a €22.3 billion net loss after recognizing €25.4 billion of unusual charges for the year. Management described these items as largely reflecting a strategic reset: adjustments to product and EV supply-chain plans, a revision of warranty estimation methods, and other charges including workforce reductions in Enlarged Europe. The company said roughly €22.2 billion of H2 2025 charges were excluded from AOI, with about €6.5 billion of those being cash payments expected over the next four years.
Operationally H2 2025—the first full six months after the leadership changes—showed meaningful improvement. Net revenues in H2 rose 10% year-over-year to €79.2 billion, consolidated shipments increased to 2.82 million units (+11% YoY), and H2 IFCF was negative €1.5 billion, a significant step forward versus earlier periods. Management attributed the progress to stronger execution on new launches, improved quality metrics and regionally empowered decision-making.
To preserve financial flexibility the Board suspended the 2026 dividend and authorized up to €5 billion of hybrid bond issuance. The company ended 2025 with €46 billion of industrial available liquidity and reiterated an expectation that IFCF will improve in 2026, with a positive industrial free cash flow targeted for 2027.
Analysis & Implications
The scale of the unusual charges signals a substantial repositioning of Stellantis’ product and supply chain strategy. Writing down costs associated with previously planned EV investments and restructuring product roadmaps can be painful near term but may reduce the risk of future mismatches between supply and demand. Investors will likely watch the cash vs non-cash split of charges closely; management has indicated approximately €6.5 billion of near-term cash outflows tied to the reset.
H2 2025 operational gains suggest the reset may already be producing benefits: top-line growth returned and quality indicators improved materially in key markets. If launch execution and quality trends continue into 2026, Stellantis could convert the momentum into margin recovery and working-capital improvements that accelerate cash generation. However, achieving that outcome depends on managing supply-chain cost, pricing, and demand across regions with diverse powertrain preferences.
Suspending the 2026 dividend and tapping hybrid debt are defensive balance-sheet choices that preserve liquidity while the company implements the reset. These moves reduce near-term shareholder returns but strengthen flexibility for product investments and potential M&A or JV activity. Markets will judge management by the pace of AOI margin recovery and whether IFCF turns positive in line with the 2027 target.
Comparison & Data
| Metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Net revenues | €153,508m | €156,878m | (2)% |
| Net profit/(loss) | €(22,332)m | €5,520m | n.m. |
| Adjusted operating income (AOI) | €(842)m | €8,648m | (110)% |
| AOI margin | (0.5)% | 5.5% | (600) bps |
| Industrial free cash flow | €(4,525)m | €(6,045)m | +25% |
| Consolidated shipments | 5.484 million | 5.415 million | +1% |
The table highlights a mixed performance: shipments were broadly stable year-over-year while profitability swung to a significant loss due to one-off charges and changing assumptions. Notably, industrial free cash flow improved relative to FY2024, helped by operational improvements in H2 2025. Stakeholders should track sequential H1→H2 2026 progress to gauge whether the FY2026 guidance (mid-single-digit revenue growth and low-single-digit AOI margin) is achievable.
Reactions & Quotes
Company leadership framed the results as a deliberate reset to align product choices with customers:
“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.”
Antonio Filosa, CEO (Stellantis press release)
The company also emphasized early operational gains in H2:
“In the second half of the year we began to see initial, positive signs of progress with quality improvements and a return to top line growth.”
Stellantis management (press release)
Market and stakeholder reaction will focus on the credibility of execution: improved H2 metrics are encouraging, but investors will require consistent quarterly evidence of margin and cash-flow recovery.
Unconfirmed
- Exact timing and allocation of the remaining €25.4 billion of unusual charges beyond the disclosed €22.2 billion in H2 2025 are not fully public and detailed disclosures may follow in regulatory filings.
- Precise schedule for the €6.5 billion of cash payments over the next four years may shift depending on implementation and negotiations with suppliers and workforce groups.
- Scope and financial impact of any further product plan changes or potential asset impairments tied to the reset remain subject to future board approvals and external conditions.
Bottom Line
Stellantis’ FY2025 results represent a major strategic inflection: substantial one-off charges have produced a large reported loss but the company reports early operational improvements that restored revenue growth in H2 2025. The reset aims to better align product portfolios with regional customer preferences and to stabilize future profitability.
Execution in 2026 will determine whether the reset translates into sustainable margin and cash-flow recovery. Key near-term indicators to watch are quarterly AOI margins, industrial free cash flow trends, the cash-versus-non-cash split of prior charges, and whether quality and launch execution keep improving as management projects.