Stellantis Navigates Headwinds: H1 2025 Losses Amidst Recovery Efforts and Tariff Challenges

Stellantis (NYSE: STLA) has released its financial results for the first half of 2025, reporting a net loss of (€2.3) billion, a significant decrease from a net profit of €5.6 billion in the same period last year. Net revenues for the half declined by more than 10% to €74.3 billion, primarily due to reductions in North America and Enlarged Europe, despite some growth in South America. The company's adjusted operating income (AOI) fell to €0.5 billion, resulting in an AOI margin of 0.7%, considerably below the prior year's levels. Industrial free cash flows also saw a deficit of (€3.0) billion, influenced by capital expenditures and research and development investments.

These results reflect a challenging operational environment, marked by foreign exchange impacts, tariffs, and declining light commercial vehicle volumes in Europe. Specifically, the company anticipates a total tariff impact of approximately €1.5 billion for 2025, with €0.3 billion already incurred in the first half. These costs include those stemming from U.S. tariffs on imports from Mexico and Canada, which affect a substantial portion of Stellantis' U.S. vehicle sales.

In response to these headwinds, Stellantis has initiated a series of recovery actions and strategic shifts. Antonio Filosa assumed the role of CEO on June 23, 2025, and has since appointed a new leadership team composed of experienced automotive executives. Filosa expressed confidence in the company's ability to overcome current challenges, stating, "My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong in Stellantis by capitalizing on everything that’s right in Stellantis – starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market."

The company's commercial recovery strategy includes the introduction of four new models in the first half of 2025, such as the Citroën C3 Aircross and the Ram ProMaster Cargo BEV, alongside significant updates to existing popular vehicles. These new offerings contributed to an improvement in EU30 market share and strengthened North American order books. Stellantis plans to launch ten additional models in 2025, including several STLA Medium platform vehicles in the latter half of the year. Furthermore, in response to customer feedback, the 5.7-liter HEMI® V-8 engine will return in the 2026 Ram 1500, with first deliveries expected in the second half of 2025. Other iconic products, including the hybrid Jeep® Cherokee and the internal combustion engine Dodge Charger SIXPACK, are also set to resume production.

Despite the challenging first-half performance, Stellantis has re-established its financial guidance for the second half of 2025, anticipating increased net revenues, low-single-digit AOI profitability, and improved industrial free cash flows. This outlook assumes the continuation of current tariff and trade regulations. The company's total industrial available liquidity stood at €47.2 billion as of June 30, 2025. Stellantis aims for a gradual recovery, with signs of sequential improvement noted across shipments, net revenues, and AOI when comparing the first half of 2025 to the second half of 2024.