Core Insights - Ram has entered a multi-year partnership with Thrill Sports, becoming the official truck and auto partner for its sports and entertainment properties, including Power Slap, Street League Skateboarding, and Nitro Circus [2][5][9] Partnership Details - The partnership grants Ram exclusive category rights in pickup trucks and American automotive across the Thrill Sports portfolio, covering all numbered Power Slap live events, global Street League Skateboarding Championship Tour stops, and Nitro Circus tour events worldwide [3][9] - Ram's branding will be prominently featured in various capacities, including in-competition integrations at Power Slap events and branding rights across the Street League Skateboarding season [7][8] Marketing and Promotion - The partnership includes extensive integration across live events, broadcast programming, social media, digital platforms, and original content, enhancing Ram's visibility and engagement with fans [6][9] - Ram will also take on presenting rights for Nitro Circus' North American Tour, showcasing the durability and strength of its trucks [10] Brand Alignment - The collaboration aligns Ram with properties that embody speed, toughness, and high-performance action, resonating with the brand's identity and customer base [5][6] - Ram aims to support athletes, fans, and the culture of fearlessness represented by Thrill Sports, enhancing its brand image in the action sports arena [6] Audience Engagement - The partnership will feature on-site activations at live events, allowing fans to interact with Ram's lineup of trucks, and will include social media content across Thrill Sports' channels, which have over 75 million followers [14]

Core Insights - Detroit automakers, including Ford, General Motors, and Stellantis, are closely monitoring the escalating conflict between the U.S. and Iran due to its impact on oil prices and potential effects on vehicle sales [1][10] Oil Price Impact - The conflict has led to a surge in oil prices, exceeding $100 per barrel for the first time in four years, primarily due to disruptions in the Strait of Hormuz, which is crucial for global oil supply [2] - Approximately 20 million barrels of oil per day, accounting for about 20% of the world's seaborne crude supply, transit through this strategic route [2] Vehicle Demand Shifts - A sustained increase in gasoline prices could reduce demand for larger vehicles like trucks and SUVs, which are significant profit drivers for Detroit automakers [4] - Historically, rising fuel prices have shifted consumer preferences towards smaller vehicles, hybrids, and electric cars, posing a risk to automakers heavily reliant on gasoline-powered models [4] Market Exposure - The direct business exposure of Detroit automakers to Iran and the broader Middle East is limited, with only about 1.8 million vehicle sales in the region in 2024, of which the Detroit Three captured a small share [5] - Ford sold approximately 70,000 vehicles, General Motors around 62,000, and Stellantis about 50,000 in the Middle East [5] Electric Vehicle Opportunities - A prolonged oil shock could unexpectedly boost demand for electric vehicles, as higher fuel costs make EVs more attractive despite their higher upfront prices [9][11] - The average price of a new EV was about $55,715 compared to $49,191 for gasoline-powered vehicles as of January [11] Company Strategies - General Motors is well-positioned to benefit from a potential increase in EV demand, offering a wider range of electric models across its brands [12] - Stellantis may face greater risks if high gas prices persist, as its strategy heavily relies on performance-oriented vehicles with larger engines [13] - Ford is in a transitional phase, shifting towards more gasoline and hybrid vehicles while scaling back some EV plans [14] Conclusion - While the U.S.-Iran conflict currently has limited direct impact on Detroit automakers, sustained high oil prices could reshape U.S. vehicle demand, favoring hybrids and EVs, which may benefit some automakers while posing challenges for others [15]

Core Insights - Stellantis has reported a significant annual loss for its 2025 fiscal year, resulting in no profit-sharing bonuses for its employees, marking the first time in history that the company has failed to award these checks [2][3] - In contrast, Ford employees received nearly $7,000 and GM's union workers received $10,500 in profit-sharing checks this year, highlighting a stark difference in performance among the Big 3 automakers [1][2] - UAW president Shawn Fain criticized Stellantis's management, attributing the lack of bonuses to poor decisions made by CEO Carlos Tavares and calling for a shift in focus from Wall Street profits to investments in workers and plants [3][4] Company Performance - Stellantis's performance in 2025 was described as "very challenging," with the company citing the need for a business reset to correct past decisions [4] - The company is optimistic about future growth, mentioning investments like the reintroduction of the HEMI V8 engine in the Ram 1500 as a strategy to enhance customer focus and support profitable growth [4] - UAW vice president Rich Boyer criticized Stellantis for prioritizing short-term profits over sustainable practices, indicating that the company has compromised its operational integrity [4]

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]

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 [10] - AOI was negative in the range of EUR 1.2 billion to EUR 1.5 billion, with industrial free cash flow also negative, ranging from EUR 1.4 billion to EUR 1.6 billion [10] - The company announced EUR 22 billion worth of charges excluded from AOI, with EUR 14.7 billion related to product plans, EUR 2.1 billion for resizing the EV supply chain, and EUR 5.4 billion for other items [9][10] 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 [5][6] - Global shipments increased by 11% in H2 2025 compared to H2 2024, with North American shipments up by 39% [6] - The order intake in Europe increased by 13% in H2 2025 compared to H2 2024, and the order book in North America rose by over 150% [6][7] Market Data and Key Metrics Changes - The company retained segment leadership in the all-hybrids market and the profitable light commercial vehicle market in Europe [6] - In South America and the Middle East and Africa, the company continued to experience growth [6] - The U.S. retail market share is growing, with a significant increase in order book and market share expected in 2026 [24][54] 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 [3][4] - A focus on launching new products and improving manufacturing execution is central to the company's growth strategy [17] - The company plans to invest $13 billion in the U.S. over the next four years, launching five all-new products and 19 relevant products [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of recovery in H2 2025, with expectations for positive industrial free cash flow by 2027 [4][13] - The company anticipates mid-single-digit revenue growth in 2026, with low single-digit margin guidance [12] - Management acknowledged competitive pressures in Europe but remains confident in the company's ability to return to profitability [70] Other Important Information - The company finished 2025 with industrial available liquidity of approximately EUR 46 billion, maintaining a strong balance sheet [14] - The decision to not pay a dividend this year reflects the company's net loss [13] Q&A Session Summary Question: Can you provide more details on AOI and margin expectations? - Management clarified that they are not contemplating any equity raise and expect continuous improvement in AOI driven by volume increases and operational efficiencies [22][23] Question: Is there a need for more drastic actions in Europe regarding capacity? - Management emphasized a growth strategy with significant investments in new products and a focus on efficiency, indicating that they will share more details in the upcoming Investor Day [29][30] Question: What is the rationale behind issuing hybrid bonds? - Management stated that the hybrid bonds are intended to strengthen the balance sheet and protect the investment grade rating, while also being a competitive financing instrument [35] Question: Can you explain the difference between operating cash burn and industrial free cash flow? - Management provided a detailed reconciliation, indicating that operating cash flow includes performance from the financial services segment, while industrial free cash flow focuses on industrial operations [40] Question: What are the expectations for warranty spending in 2026? - Management expects warranty spending to stabilize and not increase compared to 2025 levels, with improvements in product quality anticipated [92][93]

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]