Stellantis Reports First Half 2025 Results Reflecting External Headwinds and Ongoing Recovery Actions; Financial Guidance Re-Established

Core Insights - Stellantis reported a challenging first half of 2025, with net revenues of €74.3 billion, down 13% compared to H1 2024, primarily due to declines in North America and Enlarged Europe, partially offset by growth in South America [6][8] - The company experienced a net loss of €2.3 billion in H1 2025, a significant decline from a net profit of €5.6 billion in H1 2024, reflecting the impact of external headwinds and strategic challenges [8][6] - A new leadership team, led by CEO Antonio Filosa, has been established to navigate the company through these challenges and focus on profitable growth [7][9] Financial Performance - Net revenues decreased from €85.0 billion in H1 2024 to €74.3 billion in H1 2025, marking a 13% decline [5][8] - Adjusted operating income fell to €0.5 billion with a margin of 0.7%, down from €8.5 billion and 10.0% in the previous year, indicating a 94% decrease in operating performance [5][8] - Industrial free cash flows were negative at €3.0 billion, worsening from a negative €0.4 billion in H1 2024, driven by high capital expenditures and R&D costs [5][8] Market Dynamics - The company faced significant external challenges, including foreign exchange headwinds, tariffs, and declines in European light commercial vehicle (LCV) industry volumes [6][8] - Despite these challenges, Stellantis reported sequential improvements in shipments, net revenues, and adjusted operating income compared to H2 2024, indicating a gradual recovery [2][8] Strategic Initiatives - Stellantis launched four new models in H1 2025 and plans to introduce ten new models throughout the year, aiming to enhance market share and customer engagement [10][11] - The company has re-established financial guidance for H2 2025, expecting increased net revenues and low-single digit adjusted operating income profitability [15][8] - Stellantis is actively engaging with policymakers regarding tariff impacts, estimating a net tariff impact of approximately €1.5 billion for 2025 [14][8] Segment Performance - North America reported a significant decline in shipments and net revenues, with a net loss of €951 million in H1 2025 compared to a profit of €4.4 billion in H1 2024 [18][20] - South America showed resilience with a 5% increase in net revenues, driven by higher shipments, particularly in Argentina [19][23] - The Enlarged Europe segment also faced challenges, with a decrease in shipments and net revenues, reflecting ongoing market pressures [18][20]