Stellantis Reports €22.3 Billion Loss for 2025 | Automotive News
Stellantis, the automotive giant encompassing brands like Jeep, Peugeot, and Maserati, reported a net loss of €22.3 billion for the full year 2025, marking the company’s first annual loss in its history. The results, announced on , reflect substantial charges related to a strategic shift away from aggressive electric vehicle (EV) expansion and towards a more balanced powertrain approach.
The loss was largely driven by €25.4 billion in “unusual charges,” primarily stemming from write-downs associated with EV programs, according to the company’s statement. This follows an earlier announcement on , detailing €22.2 billion in write-downs for the second half of 2025 alone. The financial setback underscores the challenges automakers face in navigating the transition to electric mobility and accurately forecasting consumer demand.
Net revenues for 2025 reached €153.5 billion, a 2% decrease compared to the €156.8 billion reported in 2024. This decline was attributed to unfavorable foreign exchange rates and net pricing declines during the first half of the year. While the volume of vehicle sales increased slightly – rising to 5.48 million units from 5.41 million in 2024 – the revenue impact of pricing pressures and currency fluctuations proved significant.
The company also reported an adjusted operating loss of €842 million, with an AOI (Adjusted Operating Income) margin of -0.5%. Industrial free cash flows were negative €4.5 billion for the year. In response to the financial strain, the Board of Directors authorized the suspension of the 2026 dividend and the issuance of up to €5 billion of hybrid bonds to bolster its balance sheet.
However, Stellantis highlighted improvements in the second half of 2025, particularly under its renewed leadership team. Net revenues saw a 10% year-over-year increase during this period, and industrial free cash flow improved by 50% compared to the first half of 2025 and 73% compared to the second half of 2024. This suggests a potential stabilization of performance as the company implements its revised strategy.
The strategic shift involves a recalibration of EV investments and a renewed focus on internal combustion engine (ICE) and hybrid technologies. This decision comes after Stellantis overestimated the speed of consumer adoption of EVs and encountered challenges with the competitiveness of some of its electric models, particularly in the US market. The company is now prioritizing profitable growth opportunities across its various brands and regions, including the introduction of “white-space products” and a broader range of powertrain options.
The return of the HEMI V8 engine in North America is a visible manifestation of this shift, catering to continued demand for traditional powertrains. Sales are expected to benefit from new models, particularly pickup trucks with internal combustion engines in the US, with pricing strategies varying by region – increasing in the US but decreasing in Europe.
Despite the challenging 2025 results, Stellantis affirmed its financial guidance for 2026, anticipating a gradual improvement in net revenues and a return to a low single-digit positive AOI margin. The company ended 2025 with €46 billion in industrial available liquidity, providing a financial cushion as it navigates the ongoing transformation of the automotive industry.
The impact of potential US tariffs is estimated at €1.2 billion for 2025 and €1.6 billion for 2026, a figure Stellantis has maintained despite a recent Supreme Court decision regarding tariffs imposed by the previous US administration. The company is also reverting to quarterly financial reporting to provide increased transparency and reassure financial markets.
The €22.3 billion loss represents the second-largest annual loss for a French company, trailing only the €23.3 billion loss reported by media conglomerate Vivendi in 2002. Stellantis’s decision to reintroduce models with internal combustion engines, including diesel options, in both the US and Europe, is presented as complementary to its ongoing innovation and commitment to electrification, rather than a contradiction.