Stellantis Faces Turbulent Waters: First-Ever Annual Loss Shakes Auto Industry After Bold EV Writedowns!
Auto giant Stellantis has reported a historic annual loss for 2025, marking the first time in its history that the company has faced a full-year deficit. The multinational conglomerate, which boasts well-known brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, announced a staggering net loss of €22.3 billion ($26.3 billion), a sharp decline from a €5.5 billion profit in the previous year. This loss is largely attributed to €25.4 billion in write-downs as Stellantis rethinks its electric vehicle (EV) strategy, amidst a broader trend of automotive companies reevaluating their investments in EV technologies.
Carmakers worldwide, including major players like GM, Ford, and Honda, have recently disclosed similar financial setbacks, prompting a reconsideration of their EV plans in light of actual market conditions. “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and the need to reset our business around our customers’ freedom to choose from a full range of electric, hybrid, and internal combustion technologies,” said Stellantis CEO Antonio Filosa. He added, “In 2026, our focus will be on closing execution gaps from the past and gaining momentum towards profitable growth.”
In line with these challenges, Stellantis has announced the suspension of its dividend for 2026, a move previously indicated, and the issuance of up to €5 billion in hybrid bonds. The company maintains its forecasts for the upcoming year, projecting a mid-single-digit percentage increase in net revenues and a low-single-digit adjusted operating margin.
Despite the financial turmoil, there were some positive takeaways for the company. Shares of Stellantis rose by 0.4% following the news, although the stock has fallen more than 31% year-to-date. Key earnings highlights include an adjusted operating loss of €842 million for 2025, a stark contrast to the adjusted income of €8.65 billion recorded in 2024. The company anticipates net tariff expenses rising to €1.6 billion in 2026, but it remains optimistic about achieving positive industrial free cash flow by 2027.
In the latter half of 2025, Stellantis reported a “solid” performance, with consolidated shipments reaching 2.8 million units, driven primarily by strong contributions from North America. Net revenues rose by 10%, totaling €79.25 billion in the second half compared to the same period in 2024. According to Stellantis, these results indicate an initial impact from enhanced operational efficiencies, disciplined commercial strategies, and the strength of its global brand portfolio.
As Stellantis embarks on this new chapter, the strategic shift aims to navigate the complexities of the evolving automotive landscape while positioning the company for future growth with a balanced portfolio of mobility technologies.
Original Source: https://www.cnbc.com/2026/02/26/stellantis-earnings-full-year-2025-autos-evs.html
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Publish Date: 2026-02-26 16:44:00
