Financial Data and Key Metrics Changes - In Q3 2025, consolidated shipments increased by 13% year-over-year, totaling 1.3 million units, marking a return to growth after seven quarters of decline [19][5] - Net revenues reached €37.2 billion, also up 13% compared to Q3 2024, driven by improvements in North America, Europe, and the Middle East and Africa [19][20] - The revenue increase was primarily due to a 13% volume increase, with pricing up 2% year-over-year [20][21] - The company confirmed its guidance for the second half of 2025, expecting continued growth and improved industrial efficiency [24][27] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, significantly contributing to the overall growth [19] - The Jeep Wrangler and Ram light-duty nameplates were key drivers of volume improvement in North America [22] - In Europe, the company faced challenges with softer volumes, leading to a 70 basis point decline in market share [10][19] - The company plans to launch several new products, including the Fiat 500 Hybrid and Jeep Compass, to regain market share in Europe [10][68] Market Data and Key Metrics Changes - U.S. sales rose by 6% year-over-year, with strong performance from Jeep products [9] - The Middle East and Africa region experienced a 21% increase in shipments, primarily due to higher volumes in Algeria [23] - South America saw a 5% decline in revenue, attributed to tough comparisons with the previous year [23] Company Strategy and Development Direction - The company announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five new vehicles [15][16] - The strategy focuses on correcting past product gaps and enhancing market share in key segments, particularly in North America [33][34] - The company is also engaging with European policymakers to advocate for necessary reforms in the automotive industry [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to top-line growth and the positive impact of new product launches [27][32] - The company is focused on improving pricing power and production capacity utilization as part of its growth strategy [30][33] - Management highlighted the importance of maintaining strong inventory discipline and managing working capital effectively [22][71] Other Important Information - The company is experiencing ongoing pricing headwinds in Europe but positive pricing dynamics in South America and the Middle East and Africa [22] - A strategic review is underway, which may lead to further charges in the second half of 2025 [25][80] - The company is monitoring the global chip shortage closely, implementing measures to mitigate its impact on production [73] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management noted a return to top-line growth and favorable pricing dynamics, emphasizing the importance of addressing past product gaps [30][32] Question: What are the key levers to improve free cash generation in the second half? - The primary driver for free cash flow improvement is expected to be volume growth in North America [31][35] Question: Can you clarify the expected free cash flow dynamics for the second half? - Management confirmed that the dynamics discussed are correct, with North America being the main region for volume improvement [37][39] Question: What is the outlook for U.S. tariffs and their impact on future profitability? - The new strategy aims to reduce exposure to tariffs while focusing on growth in the U.S. market [39][40] Question: What are the expectations for European margins and working capital? - Management aims to improve margins in Europe through product actions and anticipates slight increases in working capital due to higher volumes [66][71] Question: Can you provide insights on the warranty costs and provisions? - The review of warranty methodology may lead to non-cash provisions, with limited cash impact expected in 2025 [50][80] Question: What are the trends for October and Q4 volumes, especially in the U.S.? - Management expects improved volumes in North America, driven by new product launches hitting dealer lots [62][63]

Market Overview - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.35%, and Nasdaq futures down 0.55% [1] - European indices also show declines, with Germany's DAX down 0.18%, UK's FTSE 100 down 0.67%, France's CAC40 down 1.04%, and the Euro Stoxx 50 down 0.61% [2][3] - WTI crude oil prices fell by 0.86% to $59.96 per barrel, while Brent crude also dropped by 0.86% to $63.77 per barrel [4] Economic and Policy Updates - The meeting between Chinese President and US President Trump emphasized that economic and trade relations should be a stabilizing force rather than a point of conflict [5] - Federal Reserve Chairman Jerome Powell's comments on interest rate cuts have led to skepticism in the market, with the 10-year US Treasury yield holding steady at 4.08% after a previous spike [5] - Powell also stated that the current AI investment wave is fundamentally different from the internet bubble, highlighting that AI companies are rooted in profitability and real economic activity [6] Company Earnings and Performance - Roblox reported a record Q3 with 151.5 million daily active users, a 70% year-over-year increase, and bookings of $1.92 billion, exceeding analyst expectations [7] - Microsoft exceeded Q1 expectations with revenues of $77.7 billion, driven by a significant increase in capital expenditures related to AI [7] - Alphabet's Q3 revenue was $102.35 billion, up 16% year-over-year, with strong performance in its cloud division [8] - Meta's Q3 net profit fell 83% due to a one-time tax expense, despite a 26% increase in revenue to $51.24 billion [9] - Starbucks reported Q4 revenue of $9.57 billion, a 5.5% increase, with same-store sales returning to positive growth [10] - Shell's Q3 profit exceeded expectations, supported by strong oil and gas trading performance despite weak energy prices [11] - TotalEnergies' Q3 adjusted net profit fell 2.3% to $3.98 billion, meeting analyst expectations [12] - Stellantis reported a 13% increase in Q3 revenue to €37.2 billion, but issued a cost warning that affected stock performance [13] - Samsung Electronics' semiconductor division saw a 79% increase in Q3 operating profit, driven by AI demand [14] Future Outlook - OpenAI is reportedly preparing for an IPO that could value the company at $1 trillion, with plans to raise at least $60 billion [5] - Eli Lilly raised its full-year guidance due to strong sales from its weight loss and diabetes drugs, with Q3 sales reaching $17.6 billion [17] - Tesla plans to showcase its Cybercab model at the Shanghai International Import Expo in November [19]

Financial Data and Key Metrics Changes - In Q3 2025, Stellantis reported a 13% increase in consolidated shipments and net revenues compared to the prior year, with consolidated shipments reaching 1.3 million units, up 152,000 units [4][18] - Net revenues amounted to €37.2 billion, also reflecting a 13% year-over-year increase, driven by improvements in North America, Europe, and the Middle East and Africa [18][19] - The company confirmed its financial guidance for the second half of 2025, expecting continued sequential improvement [4][22] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [18][19] - The Jeep brand experienced a sales growth of 11% in Q3, nearly double the U.S. market's growth of 6% [15] - In Europe, the company faced a 70 basis point decline in market share due to softer volumes in key markets, but plans to introduce new products to regain share [8][21] Market Data and Key Metrics Changes - U.S. sales rose 6% year-over-year, with strong performances from Jeep products like Wrangler and Gladiator [7][18] - The Middle East and Africa region reported a 21% increase in shipments year-to-date, driven by higher volumes in Algeria [21] - South America experienced a 5% decline in revenue, attributed to tough comparisons with the previous year [21] Company Strategy and Development Direction - Stellantis announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [3][13] - The company is focusing on correcting past strategic decisions by reintroducing key products and enhancing its product lineup to meet customer demand [40][57] - The strategy includes a strong emphasis on product launches, with plans for 10 major new products in 2025, including the Jeep Cherokee and Dodge Charger [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to top-line growth after seven quarters of declines, highlighting improved pricing power and competitive positioning [39][40] - The company is actively engaging with European policymakers to advocate for necessary reforms in the auto industry [9] - Management anticipates a stable pricing environment in the U.S. and is focused on achieving operational efficiencies to offset potential cost increases [77] Other Important Information - Stellantis is working on a strategic review that may lead to project cancellations and adjustments in product offerings, which could have limited cash impact in 2025 [96] - The company is monitoring the global chip supply situation closely, implementing daily management strategies to mitigate disruptions [90] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management highlighted a return to top-line growth and favorable pricing dynamics, correcting past strategic decisions to fill product gaps [39][40] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America, with ongoing efforts to enhance savings and efficiencies [42] Question: Can you clarify the dynamics of free cash flow and working capital? - Management confirmed that the anticipated improvement in free cash flow is linked to volume growth, particularly in North America, and acknowledged the importance of managing working capital effectively [49][88] Question: What is the outlook for margins in Europe? - The company aims to improve margins in Europe through strategic product actions and regulatory engagement, despite facing challenges in the market [84][87] Question: How will the $13 billion investment impact cost structure and competitiveness? - The investment is expected to enhance production capacity and efficiency, with management confident in maintaining a stable pricing scenario [77][87]

Group 1 - US stock index futures experienced slight declines, with Nasdaq futures down 0.35%, S&P 500 futures down 0.24%, and Dow futures down 0.33% [1] - Major European indices collectively fell, with Germany's DAX down 0.15%, UK's FTSE 100 down 0.61%, France's CAC down 0.91%, and the Euro Stoxx 50 down 0.52% [1] - OpenAI is reportedly planning to apply for an IPO as early as 2026, with a potential valuation of up to $1 trillion [1] - Alphabet, Google's parent company, reported record Q3 revenue of $102.3 billion, with a 34% year-over-year increase in cloud computing revenue [1] - Microsoft reported Q1 FY2026 revenue of $77.67 billion and earnings per share of $3.72, both exceeding expectations; however, Azure and other cloud revenue fell short of buyer expectations [1] - Meta's Q3 revenue was $51.2 billion, with net profit declining to $2.7 billion due to one-time tax expenses; the company raised its full-year capital expenditure guidance [1] Group 2 - Eli Lilly reported a 54% year-over-year revenue increase to $17.6 billion in Q3, raising its full-year revenue forecast [2] - Merck's Q3 sales reached $17.28 billion, with adjusted earnings per share of $2.58, both exceeding expectations [2] - Stellantis reported a 13% year-over-year revenue increase to €37.2 billion in Q3, noting that US tariffs have caused approximately €1 billion in losses this year [2] - Shell's Q3 adjusted profit was $5.43 billion, surpassing expectations; the company announced a $3.5 billion stock buyback plan [2] - ServiceNow reported Q3 revenue of $3.41 billion, with adjusted earnings per share of $4.82, both exceeding expectations; the company plans a 1-for-5 stock split [2] - eBay's Q3 sales grew 9% year-over-year to $2.82 billion, with adjusted earnings per share of $1.36, exceeding expectations [2] - Carvana, a US used car retailer, reported a 54.5% year-over-year revenue increase to $5.65 billion in Q3, with earnings per share of $1.03, which fell short of analyst expectations [2] - KLA Corporation, a semiconductor testing equipment manufacturer, reported a 13% year-over-year revenue increase to $3.21 billion in Q1 FY2026, with adjusted earnings per share of $8.81, exceeding expectations [2] - Novo Nordisk is reportedly increasing its bid for Metsera, while Pfizer's $4.9 billion acquisition may face uncertainties [2] Group 3 - S&P has downgraded Strategy's credit rating to junk status at B-, citing significant "currency mismatch" risks [3]

Q3 2025 Performance - Shipments reached 13 million units, a 13% year-over-year increase[10] - Net revenues totaled €372 billion, also up 13% year-over-year, driven by growth in North America[10] - North America saw a 35% rebound in shipments compared to the prior year[10] Market Share - North America market share improved sequentially by +40bps compared to Q2 2025[10] - U S market share increased by +50bps compared to Q2 2025, reaching 78%[30] - EU30 market share decreased by -70bps year-over-year[32] U S Investment and Production - A $13 billion investment in U S operations was announced[12] - This investment aims to increase U S production by 50%[12] - The investment is expected to add over 5,000 jobs in the U S[12] H2 2025 Outlook - The company affirmed its H2 2025 outlook, expecting improved net revenues and industrial free cash flow compared to H1 2025[11] - The company anticipates incurring approximately €10 billion in net tariff expenses for 2025[79]

Core Insights - Stellantis reported third-quarter revenue of €37.2 billion, a 13% year-over-year increase, marking the first revenue growth in seven quarters, indicating the effectiveness of reforms under new CEO Antonio Filosa [1][2] - The company issued a cost warning that overshadowed the positive quarterly performance, estimating the impact of U.S. tariff policies on 2025 to be around €1 billion ($1.2 billion), down from a previous estimate of €1 billion to €1.5 billion [1][3] Group 1: Revenue and Market Performance - The revenue growth was primarily driven by strong performance in the North American market, aligning with analyst expectations [2] - Filosa has focused on reversing sales declines in the U.S. market and addressing excess vehicle inventory among North American dealers, a key issue that led to the dismissal of former CEO Carlos Tavares [2] Group 2: Strategic Initiatives and Investments - Stellantis plans to invest $13 billion to increase production in the U.S. to counter the impact of tariffs [2] - The company has announced several bold initiatives, including recognizing billions in pre-tax expenses in the first half of the year and reintroducing popular models like the Jeep Cherokee SUV while continuing to advance its electrification strategy [2] Group 3: Financial Guidance and Cost Warnings - Stellantis reaffirmed its financial outlook for the second half of 2025, including revenue growth and improved cash flow, while maintaining low single-digit growth in adjusted operating profit margin [3] - The company warned of potential costs in the second half due to strategic adjustments, product planning changes, and warranty assessment process revisions, which will significantly impact operating profit [3] - The outlook is based on the assumption that there will be no disruptions or shortages in the current supply chain [3]

Core Viewpoint - Stellantis has issued a warning regarding one-off costs for the second half of the year, despite reaffirming its financial guidance and reporting positive third-quarter results [1][2][3]. Financial Performance - Stellantis reported net revenues of 37.2 billion euros ($43.2 billion) for the third quarter, marking a 13% year-on-year increase, primarily driven by growth in North American and European markets [3]. - Analysts had anticipated third-quarter net revenues to be around 36.58 billion euros, indicating that Stellantis exceeded expectations [4]. Strategic Actions - The company is implementing strategic changes to enhance customer choice and has seen positive sequential progress and solid year-over-year performance in Q3 [4]. - Stellantis announced a significant $13 billion investment in the U.S. to align its resources and support long-term profitable growth [5]. Market Reaction - Following the announcement of the one-off charges, Milan-listed shares of Stellantis fell by as much as 6%, later stabilizing to a 4.3% decrease, with the stock down over 25% year-to-date [3].

Core Viewpoint - Stellantis reported a 13% year-over-year increase in third-quarter revenue to €37.2 billion, marking the first rise in seven quarters, driven by strong performance in North America and Europe [1] Financial Performance - Third-quarter revenue reached €37.2 billion, aligning with expectations and reflecting a 13% increase compared to the previous year [1] - This is the first revenue growth in seven quarters for the company [1] Market Impact - Stellantis shares initially dropped over 5.7% in pre-market trading but later narrowed the decline to approximately 3.7%, trading at $10.8 [1] - The company has faced an estimated loss of about €1 billion due to U.S. tariff policies this year, previously anticipated to be between €1 billion and €1.5 billion [1] Future Outlook - The company reaffirmed its forecast for revenue and cash flow growth in the second half of the year, with adjusted operating profit margin expected to reach low single digits [1]

Core Insights - Stellantis N.V. is a significant entity in the global automotive sector, formed from the merger of Fiat Chrysler Automobiles and PSA Group, with a diverse brand portfolio including Peugeot, Citroën, and DS Automobiles [1] Financial Performance - On October 30, 2025, Stellantis reported an earnings per share (EPS) of -$0.91, missing the estimated EPS of $0.41, with a revenue of approximately $87.44 billion, slightly below the estimated $87.94 billion [2] - The company's price-to-sales ratio of 0.19 indicates a low market valuation of Stellantis' sales relative to its stock price, supported by an enterprise value to sales ratio of 0.26 [3] - Stellantis has an enterprise value to operating cash flow ratio of -12, indicating difficulties in generating positive cash flow from operations [3] - The earnings yield stands at -8.63%, reflecting the negative earnings situation, while the debt-to-equity ratio of 0.56 suggests a moderate level of debt relative to equity [4] - The current ratio of 1.06 indicates slightly more current assets than current liabilities, suggesting short-term financial stability [4] Supplier Relations - Stellantis recently held its fifth annual Supplier of the Year Ceremony in Paris, recognizing 54 global suppliers for their exceptional performance, attended by the Stellantis Leadership Team and over 200 global sourcing partners [5] - The event included presentations on Stellantis' future product strategies, highlighting the company's commitment to supplier relationships and future planning [5]

Core Insights - The automaker anticipates incurring charges in the second half of the year as it continues to implement changes to its strategic and product plan [1] Company Summary - The company is undergoing significant changes to its strategic and product plan, which will result in additional charges in the latter half of the year [1]