Stellantis (NYSE:STLA) executives used the company’s full-year 2025 results call to frame the year as a “reset,” while pointing to a return to top-line growth in the second half and outlining priorities for execution in 2026. Chief Executive Officer Antonio Filosa and Chief Financial Officer Joao Laranjo reiterated themes first shared in the company’s preliminary results announcement on Feb. 6, emphasizing customer-driven product decisions, improved operational discipline, and a push to restore profitable growth.
2025 results reflected reset costs; second-half revenue growth returned
Laranjo said consolidated shipments totaled 5.5 million units in 2025, up 1%, with increases in South America, North America, and the Middle East and Africa. Net revenues were EUR 153 billion, down 2% year-over-year. The adjusted operating income (AOI) margin was negative 0.5%, which Laranjo attributed to the early stage of the recovery, substantial net tariff expenses, and a “number of specific items.”
Cash flow improved sequentially, liquidity remained strong
Industrial free cash flow was negative EUR 4.5 billion for full-year 2025. However, Laranjo said both the full year and second half showed improvement, primarily due to better working capital and lower capital expenditures. H2 industrial free cash flow was negative EUR 1.5 billion, representing a 50% sequential improvement versus H1 2025 and a 73% improvement year-over-year.
On inventory, management said 2025 featured “strong inventory discipline” and described stock increases into year-end as aligned with sales growth and the launch of new products. North American and European order books both finished 2025 at roughly three months of sales, according to Laranjo.
The company reported a net loss of EUR 22 billion, which Laranjo said “primarily reflects” a strategic shift to adjust to customer preferences and changes in the U.S. regulatory framework. He added that most of the impact was non-cash, leaving the balance sheet “in a strong place,” with industrial liquidity of about EUR 46 billion, or about 30% of revenues—at the upper end of the company’s target range.
Regional performance: North America drove second-half shipment growth
Laranjo’s regional review focused on H2 2025. He said shipments increased across all regions year-over-year, with North America the largest contributor. North America shipments rose 39% and revenues increased 31% in H2 2025, which management attributed to normalized inventory dynamics and higher sales. AOI in North America improved year-over-year on higher volume and pricing, partially offset by higher industrial costs, “mainly tariffs.”
In Enlarged Europe, Laranjo said H2 AOI declined year-over-year, pressured by a higher LEV mix and net pricing declines amid a “strong competitive environment.” South America also saw an H2 AOI decline due to increased costs, while Middle East and Africa posted solid shipment growth driven by production in Algeria and a strong Turkish market, but margins fell due to competition in Turkey that prevented FX pressures from being fully offset by pricing.
Customer-focused “reset” and 2026 execution priorities
Filosa said the company’s reset is designed to put customers “back at the center,” including changes to the organization to empower regional teams, adjustments to stakeholder relationships, and a revised product plan and EV supply chain to reflect demand. He characterized 2026 as a year of execution, with a commitment to “progressive performance improvements” across key performance indicators.
Filosa provided several operational and product updates tied to the reset:
- Stellantis launched 10 all-new products in 2025, including the return of the Jeep Cherokee in the mid-size SUV segment, rollout of the Smart Car platform in Europe, and the Ram Dakota launch in South America.
- The company hired more than 2,000 engineers as part of a “deep reset” of the quality organization.
- Stellantis plans to increase HEMI V8 engine production by 100,000 units in 2026, and Filosa said the company already relaunched the SRT division in the U.S.
- Filosa said production began on three new Dodge Charger Six-Pack variants, which management expects will represent 90% of anticipated volumes for that lineup.
On quality trends, Filosa said indicators were improving “already, and a lot,” citing improvements in the “one month in service” measure of about 50% in North America, more than 30% in Europe, and 20% in South America versus 2025.
Guidance, reporting changes, and key themes from Q&A
Management confirmed 2026 financial guidance previously provided on Feb. 6. Laranjo also said Stellantis will begin reporting full-year earnings results on a quarterly basis. In segment reporting, he said the Maserati business will be integrated into regional segments, and the company plans to publish an updated financial reference sheet in March showing updated segments and 2025 quarterly results.
During the Q&A, executives addressed several investor concerns:
- Europe profitability and restructuring: Filosa cited a rebound in market share and volumes early in 2026, strong demand for “STLA AutoDrive products,” an order portfolio up 80% year-over-year, and Stellantis’ roughly 30% share in European light commercial vehicles as key levers for profit building, while also pointing to regulatory uncertainty—especially for electrification requirements in LCVs.
- North America operating leverage and mix: Filosa attributed weaker operating leverage in H2 2025 to mix effects from constrained light-duty and heavy-duty truck production due to plant ramp-up issues that he said have been solved. He said mix should improve beginning in Q1 2026 as truck production rises and HEMI V8 demand remains strong, while also noting plans to build and sell fewer PHEVs.
- Positive AOI in 2026 for core regions: Asked directly whether North America and Europe could be in positive territory in 2026 in terms of AOI, Filosa responded “yes,” calling North America the largest contributor to 2026 profitable growth.
- 2026 market assumptions and pricing: Laranjo said Stellantis forecasts the North American market down about 2% year-over-year and Europe about flat. On pricing, he said the U.S. environment is expected to be stable to slightly positive, while Europe should remain highly competitive with continued price pressure. Overall, Stellantis expects pricing to be “basically flat,” with positives in North America offset by Europe.
- Capex and investment levels: Laranjo said 2026 investments are forecast to be “flattish” year-over-year and include stated commitments, adding that the $13 billion North America investment plan spans four years. He later said capex is expected to increase in coming years, with more details to be shared at the May investor day.
- Working capital and cash items: Laranjo reiterated earlier disclosures that of the announced charge, cash outflow would be EUR 6.5 billion, including EUR 2 billion in 2026 (EUR 1 billion in Q1). Excluding those payments, he said working capital would be a tailwind, primarily due to forecast volume growth.
- Leapmotor partnership: Filosa said Stellantis shipped around 50,000 units in 2025 in the first full year of the partnership and plans local production in Spain starting in the second half of 2026, followed by local production in South America at the Pernambuco plant, describing both commercial and technical benefits, particularly for EV competitiveness in Europe.
Filosa also announced that this was the final earnings call for Head of Investor Relations Ed Ditmire, who will be succeeded by Charles Creasman after a transition period.
Looking ahead, Stellantis plans to share a new strategic plan at its Investor Day on May 21 in Auburn Hills or via webcast, where management said it would provide additional detail on investments, brand portfolio topics, and the company’s execution roadmap.
About Stellantis (NYSE:STLA)
Stellantis N.V. is a global automotive manufacturer formed through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA, a transaction completed in January 2021. The company designs, manufactures and sells a broad portfolio of passenger cars, light commercial vehicles and related powertrains under a large number of well-known brands, including (but not limited to) Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram and Vauxhall. Stellantis also provides parts, accessories, service operations and branded aftersales support through legacy networks such as Mopar and regional dealer ecosystems.
In addition to vehicle manufacturing, Stellantis operates mobility- and software-related businesses and financial services.
