TLDR
- The automaker recorded its maiden annual deficit of €22.3 billion ($26.3B) for the 2025 fiscal year
- Massive impairments totaling €25.4 billion linked to retreating EV ambitions caused the red ink
- Management canceled the 2026 dividend payment and raised up to €5 billion through hybrid bond offerings
- Second-half revenues climbed 10%, while vehicle deliveries increased 11% compared to the prior year
- Management forecasts positive industrial free cash flow won’t materialize until 2027, with tariff expenses reaching €1.6B in 2026
The automotive giant Stellantis disclosed a full-year 2025 deficit of €22.3 billion ($26.3 billion), marking the first time the company has recorded an annual loss since its creation in 2021.
This represents a dramatic turnaround from the €5.5 billion profit the company generated in 2024.
Massive impairment charges of €25.4 billion accounted for the bulk of the losses, with €22.2 billion of these charges recorded during the final six months of the year, as initially disclosed on February 6.
Chief Executive Antonio Filosa attributed the impairments to an incorrect forecast regarding electric vehicle market penetration. “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition,” Filosa stated.
The company joins an expanding group of major automakers scaling back their electrification plans. General Motors, Ford Motor Company, and Honda have all recorded comparable charges in recent quarters.
The writedowns also account for quality control issues that Filosa traced back to aggressive cost reduction measures implemented by predecessor 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, Stellantis posted a deficit of €842 million for the entire year, a stark contrast to the €8.65 billion profit achieved in 2024.
H2 2025 Shows Some Recovery
Despite the overall negative results, certain metrics showed improvement. Second-half 2025 net revenues increased 10% year-over-year, reaching €79.25 billion.
Vehicle deliveries during the same period jumped 11%, with the North American market delivering the most significant contribution at 2.8 million consolidated units.
Stellantis attributed these improvements to enhanced operational efficiency and more strategic commercial practices.
Dividend Suspended, Bonds Issued
Management confirmed it will skip the 2026 dividend distribution, a decision that had been previously signaled to investors.
To strengthen its financial position, the company raised capital through the issuance of up to €5 billion in hybrid bond instruments.
For the coming year, Stellantis maintained its 2026 outlook: mid-single-digit percentage revenue growth and a low-single-digit adjusted operating margin.
The company doesn’t anticipate generating positive industrial free cash flow before 2027.
Tariff-related costs are anticipated to climb to €1.6 billion in 2026, up from €1.2 billion in 2025.
Analysts at Citi described the results as an “obvious low point” but said they see “better quality and less risk in other European and US OEMs.”
Shares trading in Milan declined approximately 0.3% during Thursday morning sessions, having already dropped roughly 20% following the February 6 impairment disclosure.
The equity has tumbled more than 30% year-to-date and touched an all-time low of €5.73 on February 6.
The company’s 2026 tariff vulnerability of €1.6 billion underscores its significant dependence on the U.S. market as its main source of profitability.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
