Stellantis NV (STLA.US) reported a loss for the second half of last year. The automaker scaled back its electric vehicle transition plans, triggering a wave of impairments and charges. In the six months ending December, Stellantis posted an adjusted operating loss of €1.38 billion ($1.6 billion). The company stated that the majority of the negative performance was linked to its North American operations, which recorded a loss of €941 million.

Financial results showed that Stellantis reported revenue of €153.5 billion for 2025, a 2% decline compared to 2024, primarily due to unfavorable currency exchange rates and lower net pricing in the first half of 2025. Revenue for the second half of 2025 was €79.2 billion, representing a 10% year-over-year increase. The company reported a full-year net loss of €22.3 billion for 2025, with the second-half loss alone amounting to €20.1 billion.

Earlier this month, Stellantis adjusted its aggressive electric vehicle strategy following disappointing demand in Europe and the removal of incentives in the United States. Automakers, including Stellantis, have been reintroducing fuel-intensive combustion-engine models in the U.S. market. Total impairment losses surged to €25.4 billion last year, with the majority concentrated in the second half. The pullback on EV plans is part of Stellantis's efforts to recapture market share in the Americas and Europe.

Stellantis has been cutting prices, and sales have improved, driven by North America where deliveries increased by 39% to 825,000 vehicles. Chief Executive Officer Antonio Filosa stated in a release that the second half showed "initial positive signs" through improved quality and the launch of new models.

The stock price declined due to the substantial corporate value write-downs. The record charges detailed on February 6 had previously wiped out a quarter of the company's market capitalization. This strategic shift largely represents a reversal of the bold bets on electric vehicles made by its predecessor, Carlos Tavares. The adjustment also included a scaling back of its battery production capacity plans.

In Europe, the company reported an adjusted operating loss of €660 million, which included costs related to the Takata airbag recall campaign. This compares to an adjusted operating profit of €359 million in the same period a year earlier. Vehicle sales for brands such as Peugeot, Fiat, and Opel remained largely flat at 1.2 million units.

Stellantis reiterated its 2026 performance guidance on Thursday. This includes an expectation for net revenues to grow in the mid-single-digit percentage range and for the adjusted operating profit margin to reach the low single digits. The company anticipates that industrial free cash flow will not turn positive until 2027. Stellantis confirmed it will not pay a dividend this year.

The group has traditionally viewed North America, particularly the United States, as its profit growth engine. The group indicated that due to U.S. tariffs, it expects costs to reach €1.6 billion this year, up from €1.2 billion in 2025.

Automakers have struggled to cope with lower-than-anticipated electric vehicle demand. In the United States, the Trump administration eliminated tax credits, while high prices mean European buyers remain highly sensitive to subsidies. Chinese brands like BYD, which offer highly competitive models, are gaining market share in most regions globally.

Filosa stated that after a comprehensive review of its operations, the French-American-Italian automaker intends to maintain its structure as a global company. He will provide further details at a Capital Markets Day scheduled for May 21 in the United States.

Stellantis was formed from the merger of Fiat Chrysler and France's PSA Group in 2021 and possesses a portfolio of 14 brands. Filosa is taking steps to stabilize the company. Under the leadership of Carlos Tavares, who implemented aggressive job cuts and cost reductions, the company experienced a significant loss of market share. This drive for efficiency, coupled with strategic missteps, led to quality issues, gaps in the product lineup, and incorrect vehicle pricing.