Stellantis N.V. ((IT:STLAM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Stellantis N.V. recently held its earnings call, revealing a challenging first half of 2025 characterized by declines in shipments, revenue, and profitability. These difficulties were primarily due to tariffs and regional headwinds. Despite these challenges, the company is optimistic about its future, with strategic changes under new leadership aimed at driving growth. The introduction of significant product launches and improvements in inventory and order books are seen as positive steps forward. While financial liquidity remains robust, Stellantis continues to face ongoing regulatory and market challenges.
Leadership Transition and Strategic Changes
Antonio Filosa has taken the helm as CEO of Stellantis, bringing a fresh leadership team focused on taking decisive actions to enhance performance. Among the key strategic decisions are the cessation of fuel cell initiatives in Europe and the reintroduction of popular models such as the Jeep Cherokee and Dodge Charger. These moves are expected to bolster growth and profitability.
Inventory and Order Book Improvements
Over the past year, Stellantis has successfully reduced its total inventory by 16% across Europe and North America. This reduction, coupled with a 14% increase in order books in the last year and a 34% increase in the last six months, indicates strong demand in these regions.
Product Launches and Market Share Gains
Stellantis launched four new products in the first half of the year, including competitive B segment products in Europe. These launches have contributed to a 1.3 percentage point increase in market share in Europe from the second half of 2024. Stellantis has also achieved the #2 position in European BEV volumes and the #1 spot in European hybrids.
Financial Liquidity and Capital Market Plans
The company maintains a strong industrial liquidity position, with EUR 47 billion in liquidity, including EUR 31 billion in cash and liquid securities. Stellantis plans to unveil an updated long-term strategic plan at the Capital Markets Day in early 2026.
Decline in Shipments and Revenue
Stellantis experienced a 7% decline in consolidated shipments, totaling 2.7 million units, and a 13% decrease in net revenue to EUR 74 billion. These declines were driven by adverse regional mix and lower pricing.
Negative AOI Margin and Cash Flow Challenges
The company’s AOI margin was compressed to 70 basis points, with an industrial free cash flow outflow of EUR 3 billion in the first half. Tariffs, foreign exchange headwinds, and a EUR 1.6 billion increase in industrial costs contributed to these challenges.
Tariff and Regulatory Pressures
Stellantis is facing an expected net tariff expense of approximately EUR 1.5 billion for the year, with significant impacts anticipated in the second half. Regulatory challenges, particularly in the U.S. and Europe, continue to pose risks to the company.
Underperformance in Key Regions
North America and Europe remain in turnaround phases, grappling with profitability challenges. In Europe, a 13% drop in industry volumes for LCVs has impacted Stellantis’ stronghold segments.
Forward-Looking Guidance
During the earnings call, Stellantis provided financial guidance indicating a challenging period ahead, while maintaining a focus on strategic improvement. The company expects net revenue growth and AOI margins in the low single digits for the second half of 2025, alongside improvements in industrial free cash flow. Stellantis is concentrating on launching new products, addressing tariffs, and maintaining financial discipline to drive gradual sequential acceleration through the remainder of the year and beyond.
In conclusion, Stellantis’ earnings call painted a picture of a company navigating through a tough first half of 2025, with declines in key financial metrics. However, strategic changes under new leadership, coupled with product launches and improved inventory management, provide a hopeful outlook. While challenges remain, particularly with tariffs and regulatory pressures, Stellantis is poised to leverage its strong liquidity position and strategic initiatives to drive future growth.