Core Viewpoint - Stellantis Group anticipates a significant financial loss of approximately €19 billion to €21 billion (around ¥156.1 billion to ¥172.5 billion) in the second half of 2025 due to a major business restructuring plan aimed at adjusting its electrification strategy and addressing operational shortcomings [2][6]. Group 1: Financial Forecast - Stellantis expects net revenues for the second half of 2025 to be between €78 billion and €80 billion [3]. - The projected net loss for Stellantis in 2025 is estimated to be between €213 billion (approximately ¥1750 billion) and €233 billion (approximately ¥1914 billion) [6]. - The restructuring plan will incur costs of approximately €22.2 billion (around ¥182.4 billion), with about €6.5 billion (around ¥53.4 billion) expected to be paid in cash over the next four years [7][8]. Group 2: Restructuring Plan - The restructuring plan includes a significant adjustment to product offerings to align with customer preferences and new emission regulations, leading to a reduction in expected sales of electric vehicles [4][8]. - Stellantis plans to cancel certain models and platforms, incurring costs of €2.9 billion (around ¥238 billion) and €6 billion (around ¥493 billion) respectively, due to decreased sales and profitability [8]. - The restructuring also involves a €2.1 billion (around ¥172 billion) investment in adjusting the electric vehicle supply chain, including cash payments related to battery manufacturing capacity [8]. Group 3: Market Performance - Stellantis reported a 11% year-on-year increase in consolidated shipments for the second half of 2025, totaling 2.8 million vehicles, with North America contributing the most significant growth at 39% [12]. - In Q4 2025, Stellantis expects consolidated shipments to reach 1.52 million vehicles, a 9% increase compared to Q4 2024, with North America showing a 43% growth [15][16]. - The company has initiated a partnership with Leapmotor, investing €1.5 billion (approximately ¥11.6 billion) to acquire a 20% stake, which is expected to enhance Stellantis's electrification efforts and global market presence [19][22].

Core Viewpoint - Stellantis has announced significant write-offs due to lower-than-expected demand for electric vehicles, leading to a sharp decline in its stock price by approximately 24.5% [1] Financial Impact - The company reported charges totaling 22.2 billion euros ($26.5 billion), primarily related to downsizing its electric vehicle (EV) plans and addressing quality issues [2] - Stellantis anticipates an operating loss of 1.2 billion to 1.5 billion euros for the second half of 2025, and has suspended dividend payments [3] Product Strategy Changes - Stellantis has canceled the planned battery-electric version of its full-size Ram pickup truck, reinstating orders for the Ram 1500 with the Hemi V-8 engine [5] - The write-offs include 14.7 billion euros for product-plan changes, 2.1 billion euros for downsizing the EV supply chain, and 5.4 billion euros in other charges related to warranty work and quality improvements [6] Market Context - Other automotive companies like Ford and General Motors have also announced similar adjustments to their EV strategies, but Stellantis's financial impact has been notably more severe [2]

Financial Data and Key Metrics Changes - Revenues rose by 10% year-over-year at the preliminary estimate midpoint, driven by an 11% increase in consolidated shipments [12] - AOI was negative in the range of EUR 1.2 billion to EUR 1.5 billion, with industrial free cash flow also negative in the range of EUR 1.4 billion to EUR 1.6 billion [12] - The company announced EUR 22 billion worth of charges excluded from AOI, primarily related to product plans and resizing the EV supply chain [11] Business Line Data and Key Metrics Changes - The company launched 10 all-new products in 2025, including the return of the HEMI V8 to the Ram 1500 and the rollout of the Smart Car lineup in Europe [7][9] - Global shipments increased by 11% in H2 2025 compared to H2 2024, with North American shipments up by 39% [8] - The order book in North America increased by over 150%, driven by demand for new Ram, Jeep, and Dodge products [9] Market Data and Key Metrics Changes - In Europe, the company retained segment leadership in the all-hybrids market and the profitable light commercial vehicle market [8] - Order intake in Europe increased by 13% in H1 2025 compared to H1 2024, with a 23% increase in Q4 2025 [8] - The company is maintaining growth in South America and the Middle East and Africa [8] Company Strategy and Development Direction - The company is undergoing a decisive reset to empower regional teams, improve stakeholder relationships, and enhance product plans to align with customer demand [4][5] - A significant investment of $13 billion is planned over the next four years in the U.S. for new product launches [33] - The company aims to improve manufacturing execution and quality governance, with a focus on customer preferences driving the business strategy [17][18] Management's Comments on Operating Environment and Future Outlook - Management expects continuous improvement in AOI throughout 2026, driven by volume increases and operational efficiencies [24] - The company anticipates a return to positive industrial free cash flow in 2027, with net revenues expected to rise by a mid-single-digit percentage in 2026 [15] - Management acknowledges competitive pressures in Europe but remains optimistic about market share growth in North America [76] Other Important Information - The company has a strong balance sheet with approximately EUR 46 billion in industrial available liquidity, representing a ratio of 30% to net revenues [15] - The decision to not pay a dividend this year reflects the net loss, and the board has authorized the issuance of up to EUR 5 billion in hybrid bonds to maintain liquidity [15] Q&A Session Summary Question: Clarification on AOI and margin expectations - Management confirmed that they are not contemplating any equity raise and expect continuous improvement in AOI driven by volume and mix adjustments [24][26] Question: Need for drastic action in Europe - Management emphasized a growth strategy in North America and Europe, with a focus on product launches and efficiency improvements [32] Question: Hybrid bond rationale - The hybrid bond is intended to strengthen the balance sheet and protect the investment grade rating, with competitive costs expected [38] Question: Warranty provisions and cash outflows - Management does not expect warranty spend to increase in 2026 compared to 2025, indicating improvements in product quality [100] Question: Market share expectations in the U.S. - Management expressed confidence in growing market share in the U.S. due to new product launches and improved retail performance [58]

Stellantis (NYSE:STLA) Q4 2025 Earnings call February 06, 2026 08:00 AM ET Speaker1Hello and welcome to the Stellantis Preliminary Results H2 2025 call. You will have the opportunity to ask questions at the end of the call by typing pound key 5 on your telephone keypad. Please do not exceed one question per person, and if necessary, an additional one. I now give the floor to Mr. Ed Ditmire, Head of Investor Relations, to begin today's conference. Sir, the floor is yours.Speaker0Thank you. Hello everyone, an ...

Preliminary Financial Results H2 2025 SAFE HARBOR STATEMENT This document, in particular references to "FY 2026 Financial Guidance", contains forward looking statements. In particular, statements regarding future financial performance and the Company's expectations as to the achievement of certain targeted metrics, including revenues, industrial free cash flows, vehicle shipments, capital investments, research and development costs and other expenses at any future date or for any future period are forward-l ...

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].

Core Insights - Stellantis is undergoing a strategic reset to align its business with customer preferences, focusing on a diverse range of vehicles including EVs, hybrids, and advanced internal combustion engines [2][4] - The company reported preliminary financial results for H2 2025, showing improved net revenues and industrial free cash flow, despite a net loss due to specific charges [10][13] Business Strategy and Changes - The reset involves a thorough assessment of the company's strategy and costs to better meet customer needs, with a new strategic plan to be communicated in May 2026 [2][4] - Key actions taken include re-empowering regional teams for decision-making, creating a cost-efficient supply chain, and reallocating capital to support electrified vehicle programs [6][10] Financial Performance - H2 2025 consolidated shipment volume reached 2.8 million units, an increase of 277 thousand units or 11% year-over-year, with North America showing the strongest growth at 39% [7][30] - Preliminary net revenues for H2 2025 are estimated between €78 billion and €80 billion, with a net loss projected between €19 billion and €21 billion [14] 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] - Customer order intake in Enlarged Europe increased by 13% year-over-year in H2 2025, with Q4 orders up 23% year-over-year [8] Quality Improvements - The company has seen a significant reduction in vehicle issues reported in the first month of service, with a decrease of over 50% in North America and over 30% in Enlarged Europe since early 2025 [9] Charges and Financial Adjustments - The reset resulted in charges of approximately €22.2 billion for H2 2025, including €14.7 billion related to realigning product plans with customer preferences and new emission regulations [10][12] - The company will not pay a dividend in 2026 due to the net loss in 2025 and has authorized the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds [15][16] Future Guidance - Stellantis anticipates improvements in net revenues, adjusted operating income margin, and industrial free cash flows in 2026, with a mid-single-digit percentage increase in net revenues projected [17][19] - The company expects to achieve positive industrial free cash flow in 2027, despite ongoing regulatory uncertainties [18][19]

Core Insights - FCA US LLC reported a total of 332,321 vehicle sales in Q4 2025, marking a 4% increase compared to Q4 2024, and this is the second consecutive quarter of sales growth in the U.S. [2][4] - The company achieved total sales of 1,260,344 vehicles for the full year 2025, which represents a 3% decrease year over year [4]. Sales Performance - December 2025 sales reached 121,170 vehicles, also reflecting a 4% increase compared to December 2024 [2]. - Jeep brand experienced its best December retail sales in three years, contributing to year-over-year total sales growth [7]. - Ram brand retail sales increased by 17% for the calendar year, with the Dodge Durango achieving its best total sales year since 2005, up 37% year over year [7]. Investment and Future Plans - The company announced a $13 billion investment over four years, the largest in its 100-year history, aimed at expanding U.S. production by 50% and launching five new vehicle models along with 19 product actions [3]. - This investment is expected to create over 5,000 new direct jobs across plants in Illinois, Ohio, Michigan, and Indiana [3]. Model-Specific Highlights - The Jeep Gladiator saw a remarkable 93% increase in Q4 total sales year over year, while the Wagoneer experienced a 67% increase in total sales for Q4 2025 compared to Q4 2024 [8]. - The Ram 1500's total sales increased by 23% in Q4 2025 compared to the same period in 2024, with retail sales improving across all nameplates [8]. - The Chrysler brand celebrated four months of consecutive retail sales growth, with the Pacifica minivan retail sales increasing by 23% [13].

Core Viewpoint - Ford Motor is considering ending production of its all-electric F-150 Lightning pickup truck due to increasing losses and challenging market conditions for electric vehicles (EVs) [1][2]. Group 1: Production and Sales - The F-150 Lightning is currently the best-selling electric pickup truck in the U.S., achieving record sales in Q3 despite competition from models like CyberTruck and Rivian [3]. - Ford has paused production of the Lightning due to supply chain disruptions caused by a fire at Novelis, a key supplier [4]. - Sales of the F-150 Lightning this year through October are approximately 24,577 units, remaining level compared to the previous year, with total sales since its launch in 2022 being less than 100,000 units [5]. Group 2: Financial Performance - Ford's EV operations, including the Lightning, have incurred billions of dollars in losses annually in recent years [6]. - The U.S. EV market is facing significant regulatory changes, including the elimination of consumer credits of up to $7,500 for EV purchases, which may impact sales [6]. Group 3: Industry Context - The discussions regarding the F-150 Lightning's future come after Stellantis decided to halt plans for an all-electric Ram 1500 pickup and General Motors scaled back its electric truck plans [7].

Core Insights - Stellantis' U.S. vehicle sales increased by 6% year-over-year in Q3, totaling 324,825 units, with notable gains in Jeep Wrangler, Gladiator, and Wagoneer models [3] - The company's net revenue in North America rose by 29% year-over-year to 1.6 billion euros ($1.8 billion) [3] - Stellantis' consolidated shipments globally grew by 152,000 vehicles year-over-year in Q3 [4] Sales Performance - The Middle East and Africa region experienced the second-largest sales growth for Stellantis in Q3, with a 21% year-over-year increase attributed to positive market conditions in Turkey and Egypt [4] - The U.S. market saw the most significant increase in deliveries, with consolidated shipments rising by 35% year-over-year, equating to an additional 104,000 units [7] Revenue and Financials - Stellantis reported a net revenue of 37.2 billion euros ($42.9 billion) in Q3, marking a 13% year-over-year increase, driven by sales growth in key markets [7] - The commercial business segment accounted for 30% of Stellantis' revenues in Q3 [4] Future Outlook - The company is optimistic about the new Jeep Cherokee, which is expected to enhance its U.S. market share, as the mid-sized SUV segment represents 20% of the market [5] - Stellantis plans to introduce a new hybrid powertrain for the Jeep Cherokee, with availability expected in late Q4 or early 2026 [6] - A strategic investment of $13 billion over four years has been announced to expand U.S. manufacturing and increase domestic vehicle production by 50%, creating over 5,000 new jobs [6]