Stellantis announced a sweeping business reset on Feb. 6, recording approximately €22.2 billion in charges for the second half of 2025. The charges largely reflect the automaker’s strategic pivot away from aggressive battery electric vehicle plans and toward a multi-powertrain approach that includes hybrids and advanced internal combustion engines.
Highlights
- Stellantis recorded €22.2 billion in H2 2025 charges, with €14.7 billion tied to realigning product plans and reduced BEV expectations.
- The automaker cancelled the Ram 1500 BEV and wrote down €6 billion in platform impairments due to lower volume projections.
- H2 2025 shipments rose 11% year-over-year to 2.8 million units, with North America leading at 39% growth.
- No dividend will be paid in 2026 due to a projected full-year 2025 net loss of €19 billion to €21 billion.
Strategic Shift Away From BEV-Only Focus
The largest portion of the charges — €14.7 billion — stems from realigning product plans with customer preferences and new U.S. emission regulations. Stellantis acknowledged that it overestimated the pace of the energy transition.
That figure includes €2.9 billion in write-offs for cancelled products and €6 billion in platform impairments. An additional €5.8 billion in projected cash payments over the next four years covers both cancelled products and ongoing BEV programs with significantly reduced volume expectations.
Stellantis CEO Antonio Filosa said: “The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.”
EV Supply Chain Downsized
Stellantis recorded €2.1 billion in charges related to resizing its EV supply chain. That total includes approximately €700 million in cash payments expected over four years. The charges relate to rationalizing battery manufacturing capacity.
Product Portfolio Actions
Stellantis launched 10 all-new products in 2025 and expanded powertrain options. Key product moves include:
- Returning the HEMI V-8 to the Ram 1500
- Reintroducing the Jeep Cherokee and launching the next-generation Jeep Compass
- Launching the Dodge Charger SIXPACK two-door
- Introducing the Fiat Grande Panda and Fiat 500 Hybrid
- Introducing the Citroën C3 Aircross and C5 Aircross
The company also cancelled the previously planned Ram 1500 BEV. Stellantis cited the need to align with customer demand and changes to U.S. regulatory frameworks.
The automaker committed $13 billion in U.S. investment over four years. That includes five new vehicles, 19 other product actions, more than 5,000 new jobs, and increased manufacturing capacity utilization.
Warranty Costs Add €5.4 Billion
Stellantis recorded €5.4 billion in charges related to other operational changes. The largest component — €4.1 billion — stems from a change in estimate for contractual warranty provisions.
The company attributed the warranty adjustment to cost inflation and quality deterioration from operational choices under prior management. Total warranty provisions rose to €14.1 billion at year-end 2025, up from €9.3 billion a year earlier.
An additional €1.3 billion in restructuring charges relates primarily to workforce reductions in Enlarged Europe.
H2 2025 Preliminary Financial Results
Stellantis disclosed preliminary H2 2025 financial figures showing improvement over the first half but significant losses overall:
- Net revenues: €78 billion to €80 billion
- Net loss: €19 billion to €21 billion
- Adjusted operating income: negative €1.2 billion to negative €1.5 billion
- Industrial free cash flows: negative €1.4 billion to negative €1.6 billion
Shipment Volume Rebounds
H2 2025 consolidated shipments reached 2.8 million units, up 11% year-over-year. North America drove the strongest gains at 39% growth. U.S. market share reached 7.9% in H2 2025, up 60 basis points sequentially.
In Enlarged Europe, Stellantis retained its number-two market position. Customer order intake accelerated in H2 2025, rising 13% year-over-year with Q4 orders up 23%.
Quality metrics also improved. First-month-of-service issues declined more than 50% in North America and over 30% in Enlarged Europe since early 2025.
Dividend Suspended, Hybrid Bonds Authorized
Stellantis will not pay a dividend in 2026 due to the 2025 net loss. The board authorized issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds.
Industrial available liquidity ended 2025 at approximately €46 billion. That represents a 30% ratio to net revenues, at the upper end of the company’s 25% to 30% target.
2026 Guidance Projects Gradual Recovery
Stellantis initiated 2026 financial guidance projecting improvement across key metrics:
- Net revenues: mid-single-digit percentage increase
- Adjusted operating income margin: low-single-digit percentage, including projected €1.6 billion in net tariff expenses
- Industrial free cash flows: improved year-over-year, including €2 billion in payments related to H2 2025 charges
The company expects positive industrial free cash flow in 2027. Full-year 2025 results are scheduled for release on Feb. 26, 2026.
Filosa added: “In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth. We look forward to sharing the full details of our new strategy at our Investor Day on May 21.”
For more information, visit www.stellantis.com.
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