Stellantis (NYSE:STLA) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAntonio Filosa - CEOEd Ditmire - SVP of Investor RelationsEmmanuel Rosner - Managing DirectorHenning Cosman - European Head of Automotive ResearchHorst Schneider - Head of European Automotive ResearchJoao Laranjo - CFOJosé Asumendi - Head of Global Autos and European Autos Equity ResearchMike Tyndall - DirectorPatrick Hummel - Head of European Autos ResearchPhilippe Houchois - Managing DirectorStuart Pearson - Hea ...

Stellantis (NYSE:STLA) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAntonio Filosa - CEOEd Ditmire - SVP of Investor RelationsEmmanuel Rosner - Managing DirectorHenning Cosman - European Head of Automotive ResearchHorst Schneider - Head of European Automotive ResearchJoao Laranjo - CFOJosé Asumendi - Head of Global Autos and European Autos Equity ResearchMike Tyndall - DirectorPatrick Hummel - Head of European Autos ResearchPhilippe Houchois - Managing DirectorStuart Pearson - Hea ...

Core Insights - Stellantis is undergoing a significant business reset to align with customer preferences and support profitable growth, with a new strategic plan to be communicated in May 2026 [2][4]. Financial Performance - Preliminary financial results for H2 2025 show improved Net Revenues and Industrial Free Cash Flow (IFCF), although Adjusted Operating Income (AOI) and Net Income were impacted by specific items [2][14]. - H2 2025 Net revenues are estimated between €78 billion and €80 billion, with a projected Net loss of €19 billion to €21 billion [15]. Strategic Shift - The company is focusing on a broader range of vehicles, including electric vehicles (EVs), hybrids, and advanced internal combustion engines, to meet diverse customer needs [3][4]. - A total of approximately €22.2 billion in charges was recorded for H2 2025, primarily due to realigning product plans with customer preferences and new emission regulations [10][11]. Operational Changes - Organizational changes include empowering regional teams to make decisions based on local customer knowledge and creating a more cost-efficient supply chain [6][10]. - Stellantis has seen a return to positive volume growth, with H2 2025 consolidated shipment volume reaching 2.8 million units, an increase of 277 thousand units or 11% year-over-year [7][36]. Market Position - Stellantis maintained a 7.9% market share in the U.S. for H2 2025, a 60 basis point increase sequentially, and retained its 2 market share position in Enlarged Europe [8][10]. - Customer order intake in Enlarged Europe increased by 13% year-over-year in H2 2025, with Q4 2025 orders up 23% year-over-year [8]. Quality Improvements - Initial quality management improvements have led to a reduction in reported vehicle issues by over 50% in North America and over 30% in Enlarged Europe since the beginning of 2025 [9]. Future Guidance - The company anticipates improvements in Net revenues, AOI margin, and cash generation in 2026, with a gradual sequential improvement expected throughout the year [18][19]. - Stellantis has suspended its dividend for 2026 in light of the 2025 Net loss and authorized the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds to maintain a strong balance sheet [16][17].

Financial Performance - Net revenues reached €743 billion, a decrease of 13% year-over-year [11, 15, 19, 37] - Adjusted Operating Income (AOI) was €05 billion, with an AOI margin of 07%, a decrease of 930 bps [11, 15, 22, 37] - Industrial Free Cash Flow (FCF) was negative €30 billion, compared to negative €04 billion in the previous year [11, 15, 28, 37] - Adjusted Diluted EPS was €018, a decrease of 92% [15, 37] Regional Performance - North America (NA) reported net revenues of €282 billion and an AOI loss of €10 billion, with an AOI margin of negative 34% [34] - Enlarged Europe reported net revenues of €292 billion and an AOI of €90 million, with an AOI margin of 00% [34] - South America reported net revenues of €78 billion and an AOI of €12 billion, with an AOI margin of 153% [34] - Middle East & Africa reported net revenues of €49 billion and an AOI of €08 billion, with an AOI margin of 155% [34] Strategic Initiatives and Outlook - The company estimates a net tariff impact of approximately €15 billion for 2025 [11, 40] - H2 2025 guidance indicates sequential improvement in net revenues and industrial FCF compared to H1 2025, with a low-single digit AOI margin [11, 42] - The company is adapting to evolving tariffs and focusing on mitigation strategies [39, 41]