After a net loss of $26 billion in 2025, auto giant Stellantis (STLA) has reported a net profit for the first three months of this year, with its adjusted operating income up nearly threefold. However, STLA was down over 6% early Thursday as the automaker’s cash flow remained negative.
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Stellantis’ Adjusted Operating Income Jumps 194%
During the first quarter of fiscal 2026, Stellantis swung from a net loss of €387 million ($453 million) a year ago to a net profit of €377 million ($440 million). Its adjusted operating income also climbed by roughly 194% year-over-year to €960 million ($1.12 billion).
The January-to-March period also saw Stellantis pushing its revenue up by 6% from a year ago to €38.1 billion ($44.6 billion). The automaker — whose popular brands include Jeep, Dodge, Fiat, Chrysler, and Peugeot — also massively grew its earnings per share by 425% year-over-year to €0.21 ($0.25).
Stellantis Flags Sales Growth in North America
Stellantis attributed the net profit to higher volumes and strong operating performance, with sales in North America rising by 6% from a year ago despite a similar percentage drop in sales in the U.S. auto market. However, the profit was also helped by expected tariff refunds of about €400 million, according to Reuters.
This comes as the U.S. Supreme Court recently invalidated President Donald Trump’s broad tariffs on several sectors using the U.S. International Emergency Economic Power Act.
“As we initiate quarterly reporting, the first three months of 2026 reflect the early results of our actions to return Stellantis to sustainable, profitable growth,” noted Antonio Filosa, Stellantis’ chief executive. “The products we launched in 2025 have been well received, and we’re confident that the 10 new vehicles planned for 2026 will build on this momentum.”
Stellantis Issues Guidance for Fiscal 2026
In the quarter, Stellantis’ operating cash flow improved year-over-year but remained negative: -€2.72 billion compared to -€2.85 billion a year ago. The same applies to cash from the automaker’s core industrial operations: industrial free cash flow of -€1.92 billion compared to -€3.04 billion in the same period last year.
Looking ahead, the automaker expects:
- Net revenue to rise by mid-single digits
- Adjusted operating income to grow by low-single digits
- Industrial cash flow to improve year-over-year, even as the target for a positive figure remains 2027
Is STLA a Good Stock to Buy?
On Wall Street, analysts have a Hold consensus rating on Stellantis’ shares. This is based on five Buys, 10 Holds, and one Sell issued over the past three months.
However, the average STLA price target of $9.09 implies about 18% upside. Nonetheless, analysts’ ratings might change following the latest earnings report.
