Key Highlights
- The automaker recorded an unprecedented annual loss of €22.3 billion ($26.3B) for the 2025 fiscal year
- Massive impairment charges totaling €25.4 billion stemmed from a recalibrated electric vehicle roadmap
- Dividend payments for 2026 have been cancelled while the company raised €5 billion through hybrid bond offerings
- Second-half revenues climbed 10% with vehicle deliveries increasing 11% compared to the previous year
- Positive industrial free cash flow won’t materialize until 2027, with tariff expenses reaching €1.6B in 2026
The automotive manufacturer Stellantis disclosed a full-year 2025 net deficit of €22.3 billion ($26.3 billion), marking the first time the corporation has reported an annual loss since its establishment in 2021.
This outcome represents a dramatic turnaround from the €5.5 billion in earnings generated during 2024.
The substantial deficit stemmed primarily from €25.4 billion in asset impairments, with the majority—€22.2 billion—recorded during the latter six months and disclosed on February 6.
Chief Executive Antonio Filosa attributed the impairments to miscalculations regarding electric vehicle market penetration. “Our full year 2025 performance reveals the consequences of overestimating how quickly the energy transition would unfold,” Filosa stated.
Stellantis now joins an expanding roster of automotive manufacturers scaling back their electric vehicle objectives. General Motors, Ford, and Honda have all recorded comparable charges in recent quarters.
The impairments additionally reflect challenges with vehicle quality that Filosa traced back to aggressive cost reduction initiatives under previous CEO Carlos Tavares.
Approximately €6.5 billion of these charges will require actual cash outlays, scheduled to be distributed across four years beginning in 2026.
On an adjusted operating performance basis, the company reported a €842 million loss for the complete year, contrasting with an €8.65 billion profit during 2024.
Second Half Performance Indicates Stabilization
Despite the overall negative results, certain metrics showed improvement. Net revenues during the second half of 2025 increased 10% year-over-year to €79.25 billion.
Vehicle deliveries during this timeframe grew 11%, with North America delivering the most significant contribution at 2.8 million consolidated units.
The corporation indicated these metrics demonstrate enhanced operational execution and more strategic commercial practices.
No Dividend Payment, Capital Raising Initiated
Management confirmed the elimination of dividend distributions in 2026, a decision that had been previously communicated to investors.
To strengthen its financial position, the company completed hybrid bond issuances totaling up to €5 billion.
For the upcoming year, Stellantis maintained its 2026 outlook: mid-single-digit percentage revenue expansion and a low-single-digit adjusted operating margin.
The company doesn’t anticipate achieving positive industrial free cash flow before 2027.
Tariff-related expenses in the United States are forecast to escalate to €1.6 billion in 2026, compared to €1.2 billion in 2025.
Citi analysts characterized the financial results as an “obvious low point” while noting they perceive “better quality and less risk in other European and US OEMs.”
Shares trading on the Milan exchange declined approximately 0.3% during Thursday morning sessions, following a roughly 20% drop after the February 6 impairment disclosure.
The equity has declined more than 30% year-to-date and reached an all-time low of €5.73 on February 6.
The company’s 2026 tariff exposure of €1.6 billion underscores its substantial dependence on the American market as its core source of profitability.
