Stellantis NV (NYSE:STLA) reported a significant loss in the second half of 2025 after recognising major charges linked to a reassessment of its electric vehicle strategy, marking a challenging period for the global automaker.
The group recorded a net loss of €20.1 billion for the July–December period, following previously disclosed charges totalling €22.2 billion related to strategic adjustments in its EV transition. Adjusted operating income (AOI) for the half-year came in at negative €1.38 billion, with both figures landing within the preliminary ranges outlined earlier in the month. Net revenues during the period increased by 10%.
Over the full year, Stellantis booked writedowns amounting to €25.4 billion, which Chief Executive Antonio Filosa said resulted in financial results “reflecting the cost of over-estimating the pace of the energy transition.”
The impairments were also connected to vehicle quality problems that Filosa linked to earlier cost-cutting initiatives implemented under former CEO Carlos Tavares. Approximately €6.5 billion of the writedowns are expected to translate into cash outflows spread across four years beginning in 2026.
Stellantis reaffirmed its outlook for 2026, projecting mid-single-digit growth in net revenues alongside a low-single-digit adjusted operating margin. The company expects industrial free cash flow to return to positive territory only in 2027.
“In 2026 our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth,” Filosa said.
The automaker also confirmed that it will not distribute a dividend this year.
For the full year 2025, Stellantis reported a net loss of €22.3 billion. Adjusted operating results showed a loss of €842 million, compared with a profit of €8.65 billion recorded in 2024, resulting in an adjusted operating margin of negative 0.5%.
Annual revenues declined 2% to €153.51 billion, weighed down by currency headwinds and price reductions during the first half of the year.