Massive Write-Downs Drive Annual Deficit
Stellantis reported its first-ever annual net loss on Thursday, posting a deficit of 22.3 billion euros ($26.3 billion) for full-year 2025, compared with a profit of 5.5 billion euros a year earlier. The sharp reversal was primarily driven by 25.4 billion euros in write-downs, largely tied to a scaling back of its electric vehicle strategy.
The automotive group, which owns brands including Jeep, Dodge, Fiat, Chrysler and Peugeot, described the results as the financial cost of overestimating the speed of the global energy transition.
North America Anchors Turnaround Effort
Despite the headline loss, shares of Stellantis rose more than 4% in Milan and New York trading. CEO Antonio Filosa emphasized stronger-than-expected performance in North America during the second half of 2025, signaling that the region is positioned to drive the company’s recovery.
Filosa highlighted growth in vehicle volumes and a rebound led by new product launches, including increased production of trucks equipped with Hemi V8 engines. The company also confirmed the cancellation of certain plug-in hybrid programs, a move aimed at improving profitability.
Consolidated shipments reached 2.8 million units in the latter half of 2025, with North America contributing the most significant gains. Net revenue for the second half rose 10% year over year to 79.25 billion euros.
Industry-Wide EV Reassessment
Stellantis joins other global automakers reevaluating their electric vehicle roadmaps amid shifting consumer demand and investment costs. Companies such as GM, Ford and Honda have recently announced multibillion-dollar write-downs related to EV initiatives, reflecting broader recalibration across the industry.
Filosa acknowledged that the 2025 results reflect “the cost of over-estimating the pace of the energy transition” and reiterated a strategy centered on offering customers a full spectrum of drivetrain options, including electric, hybrid and internal combustion vehicles.
Outlook and Financial Adjustments
For 2026, Stellantis reaffirmed forecasts calling for a mid-single-digit increase in net revenue and a low-single-digit adjusted operating margin. The company also projected approximately 1.6 billion euros in net tariff expenses next year.
The automaker suspended its 2026 dividend, as previously indicated, and issued up to 5 billion euros in hybrid bonds to strengthen liquidity. While it recorded an adjusted operating loss of 842 million euros in 2025 compared with operating income of 8.65 billion euros in 2024, management expressed confidence that industrial free cash flow will turn positive in 2027.
Stellantis maintains that improved operational efficiency and disciplined commercial execution, coupled with the strength of its diversified global brand portfolio, will underpin its return to profitable growth.
