Big Three automaker Stellantis (STLA) reported a massive full-year loss after taking a $26 billion EV-related charge, but saw an improvement in second half (H2) results, suggesting the company’s turnaround under CEO Antonio Filosa may be working.
Stellantis, which has brands such as Ram, Jeep, Fiat and Alfa Romeo in its product portfolio, reported second-half net income of 79.25 billion euros ($93.47 billion), within the range of 78 billion to 80 billion euros ($91.87 to $94.23 billion) expected, and 10% higher than the 71.86 billion of euros ($84.64 billion) reported a year ago.
Stellantis posted a second-half adjusted operating income (AOI) loss of €1.38 billion ($1.63 billion), also in the range of the expected €1.2 billion to €1.5 billion ($1.41 billion to $1.77 billion), a reversal of the €185 million ($218 million) profit reported in the second half of 2024, which in itself was a massive drop compared to 10.2 billion euros ($12). billion) of profits reported in 2023.
Global shipments also improved in the second half, with the company seeing an 11% increase to 277,000 units, with each region reporting higher volumes.
For the full year, Stellantis reported a net loss of 22.3 billion euros ($26.3 billion), due to 25.4 billion euros ($29.96 billion) of “unusual charges,” the company said.
Stellantis shares were little changed in premarket trading in New York.
“Our full-year 2025 results reflect the cost of overestimating the pace of the energy transition and the need to realign our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” CEO Antonio Filosa said in a statement.
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The results came after the company disclosed an electric vehicle-related charge of 22.2 billion euros ($26 billion) earlier this month. Cash payments of 6.5 billion euros ($7.7 billion) will be paid over the next four years, and charges totaling 14.7 billion euros ($17.34 billion) will be collected against the company’s second half 2025 results, Stellantis said. However, the charges will not affect the company’s adjusted operating income.
The charges were a direct consequence of the company abandoning its previous aggressive electric vehicle goals, CEO Antonio Filosa said, adding that they “largely reflect the cost of overestimating the pace of the energy transition that distanced us from the real-world needs, means and desires of many car buyers.”
The writedown also included cancellations of planned battery and Ram 1500 BEV gigafactories in Italy and Germany, as well as impairments of several electric vehicle platforms. The bulk of the charges were related to the realignment of production plans with customer preferences, as well as the impact of new U.S. emissions regulations that reflect significantly reduced expectations for battery electric vehicle products.
