Stellantis reported a net loss of 20.1 billion euros for the second half of 2025, the company said on Thursday, a figure that follows earlier guidance this month that flagged 22.2 billion euros of charges in the period related to a reined-in electric-vehicle strategy.
Adjusted operating income (AOI) for the July-December period was negative 1.38 billion euros. The automaker noted both the net loss and the AOI result fell within the preliminary estimate ranges it issued earlier in the month.
Net revenues for the second half rose 10% year-on-year. Still, the company recorded 25.4 billion euros of writedowns for the full year 2025. Chief Executive Antonio Filosa said the results reflect "the cost of over-estimating the pace of the energy transition," in a company statement.
The writedowns also reflected vehicle quality problems that Filosa attributed to cost-cutting under former chief executive Carlos Tavares. Among the charges are roughly 6.5 billion euros in cash payments, which Stellantis said are expected to be paid over four years beginning in 2026.
Despite the heavy impairments, Stellantis reiterated its outlook for 2026. The company reiterated expectations for a mid-single-digit percentage increase in net revenues and a low-single-digit adjusted operating margin.
Management said industrial free cash flows are expected to return to positive territory only in 2027. In light of the 2025 results and the cash flow timeline, Stellantis confirmed it will not pay a dividend this year.
Currency reference used in company statements: $1 = 0.8462 euros.
Summary
Stellantis posted a substantial second-half net loss driven by writedowns related to electric-vehicle strategy adjustments and vehicle quality issues, with cash payments tied to those writedowns to be spread from 2026 to 2029. The company repeated its 2026 revenue and margin guidance but does not expect industrial free cash flow positivity until 2027 and will not issue a dividend this year.
Key points
- H2 2025 net loss of 20.1 billion euros; AOI negative 1.38 billion euros.
- Full-year writedowns of 25.4 billion euros, including about 6.5 billion euros in cash payments spread over four years starting in 2026.
- 2026 guidance reiterated - mid-single-digit revenue growth and low-single-digit adjusted operating margin - with industrial free cash flows not expected to be positive until 2027.
Risks and uncertainties
- Timing of cash flow recovery - industrial free cash flows are expected to return to positive only in 2027, which poses liquidity and financing risks until then.
- Execution risk related to vehicle quality remediation and the financial impact of prior cost-cutting measures attributed to the previous leadership.
- Potential market reaction to the suspension of the dividend for the year, which could influence investor sentiment toward the automotive sector and related equities.