Key Highlights
- The automaker recorded an unprecedented annual deficit of €22.3 billion ($26.3B) in full-year 2025
- Massive impairment charges of €25.4 billion stemmed from its revised electric vehicle approach
- Dividend payments for 2026 have been halted, while hybrid bonds worth up to €5 billion were issued
- Second-half 2025 net revenues climbed 10%, with vehicle deliveries increasing 11% compared to the prior year
- The company anticipates positive industrial free cash flow only by 2027, facing €1.6B in tariff expenses this year
The automotive giant disclosed a full-year 2025 deficit of €22.3 billion ($26.3 billion), marking its inaugural annual loss since its formation through merger in 2021.
This represents a dramatic turnaround from the €5.5 billion profit achieved in 2024.
The substantial deficit stemmed primarily from €25.4 billion in impairment charges, with the majority — €22.2 billion — recorded during the latter half of the year and disclosed on February 6.
Chief Executive Antonio Filosa attributed the impairments to miscalculating electric vehicle market dynamics. “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition,” he stated.
The company has become part of a broader industry trend of automakers scaling back electric vehicle ambitions. General Motors, Ford, and Honda have all reported comparable charges recently.
These write-downs also account for vehicle quality issues that Filosa blamed on aggressive cost reduction measures implemented under previous CEO Carlos Tavares.
Approximately €6.5 billion of these impairments will require actual cash outlays, planned to be distributed across four years beginning in 2026.
On an adjusted operating performance basis, Stellantis posted a deficit of €842 million for the complete year, contrasting sharply with the €8.65 billion profit earned in 2024.
Second Half Results Indicate Momentum Shift
The financial picture wasn’t entirely bleak. Net revenues during the second half of 2025 increased 10% year-over-year, reaching €79.25 billion.
Vehicle deliveries during this timeframe grew 11%, with North America delivering the strongest performance at 2.8 million consolidated units.
Stellantis attributed these metrics to enhanced operational efficiencies and a more strategic commercial approach.
Dividend Cancelled, Financing Secured
The manufacturer confirmed its previously announced decision to forgo dividend payments in 2026.
To strengthen its balance sheet, Stellantis secured up to €5 billion through hybrid bond issuance.
For 2026, Stellantis maintained its earlier guidance: mid-single-digit percentage revenue growth and a low-single-digit adjusted operating margin.
Positive industrial free cash flow generation isn’t anticipated before 2027.
Tariff-related expenses in the U.S. are forecast to reach €1.6 billion in 2026, an increase from €1.2 billion in 2025.
Citi analysts characterized the results as an “obvious low point” but noted they see “better quality and less risk in other European and US OEMs.”
Shares traded on the Milan exchange declined approximately 0.3% during Thursday morning sessions, having already dropped roughly 20% following the February 6 impairment disclosure.
The stock has plummeted more than 30% year-to-date and reached an all-time low of €5.73 on February 6.
Stellantis’s 2026 tariff burden of €1.6 billion underscores its significant dependence on the U.S. market as its principal profit generator.
Remember: Preserve all tokens like [[EMBED_0]], [[IMG_0]], [[LINK_START_0]], [[LINK_END_0]], [[SCRIPT_0]], [[FIGURE_0]] etc. exactly as they appear. These are placeholders for embeds, images, and links that must not be changed.
