Stellantis earnings preview: After $26 billion write-down, is a turnaround next?

Pras Subramanian · Senior Reporter

Updated Thu, February 26, 2026 at 3:00 AM GMT+9 4 min read

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Big Three automaker Stellantis (STLA) will report its second half (H2) and full-year 2025 results early Thursday morning, delivering a more detailed look into the financial condition of a company in the midst of a deep turnaround following a massive EV-related write-down.

Stellantis — which counts brands like Ram, Jeep, Fiat, and Alfa Romeo in its product portfolio — said earlier this month it expects H2 net revenue in the range of 78 billion to 80 billion euros ($91.87 to $94.23 billion), higher than the 71.86 billion euros ($84.64 billion) reported a year ago.

However, Stellantis said it expects a second-half adjusted operating income (AOI) loss of 1.2 billion to 1.5 billion euros ($1.41 billion to 1.77 billion), a reversal of the 185 million euro ($218 million) gain reported in the second half of 2024, itself a massive drop compared to the 10.2 billion euro ($12 billion) profit reported in 2023.

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The downbeat results came after the company disclosed a 22.2 billion euro ($26 billion) EV-related charge earlier this month. Cash payments of 6.5 billion euros ($7.7 billion) will be paid out over the next four years, and charges totaling 14.7 billion euros ($17.34 billion) will be taken against the company’s 2025 second-half results, Stellantis said. The charges won’t impact the company’s adjusted operating income, however.

The charges were a direct consequence of the company abandoning its earlier aggressive EV targets, CEO Antonio Filosa said, adding that they “largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires.”

The write-down also included cancellations of the planned Ram 1500 BEV and battery gigafactories in Italy and Germany, as well as impairments to several EV platforms. The largest portion of the charges was related to realigning production plans with customer preferences, plus the impact of new US emissions regulations that reflect significantly reduced expectations for battery electric vehicle products.

Stellantis stock tumbled 25% on the day of that announcement, Feb. 6, and shares have struggled to recover, trading near multiyear lows heading into Thursday’s report.

Earlier in the month, Stellantis reported Q4 2025 consolidated shipments of 1.5 million units, a 9% year-over-year increase, primarily driven by North America, where shipments rose 43% compared to the same period in 2024.

Stellantis CEO Antonio Filosa poses by a Jeep Cherokee during media day of the Detroit Auto Show on Jan. 14. (Reuters/Rebecca Cook) · REUTERS / Reuters

Combined sales of the Ram 1500 with the Hemi V-8 and the refreshed Jeep Cherokee hybrid accounted for more than 30% of the year-over-year growth, affirming Filosa’s pivot toward what the company is calling a “freedom of choice” powertrain strategy.

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Customer order intake in Enlarged Europe accelerated in H2 2025, rising 13% year over year, with Q4 2025 orders up 23%. In Europe, Stellantis retained its No. 2 market share position and led the all-hybrids segment. However, Enlarged Europe overall saw shipments decline by about 4% in Q4, with Peugeot in particular posting weaker volumes ahead of model changeovers.

Filosa has been in the job for less than a year, having been selected as CEO in June 2025 after serving as the company’s Americas COO. Stellantis and Filosa committed $13 billion in US investment over four years, adding more than 5,000 jobs and launching several new vehicles — initiatives it is counting on to rebuild its commercial footing. Filosa highlighted accelerating Ram 1500 HEMI production in particular, estimating approximately 100,000 additional units produced and sold in 2026, which he called “big profit” for the company.

Looking ahead, Stellantis expects net revenues to rise in the mid-single digits in 2026, with low-single-digit adjusted operating margin guidance. The company aims to return to positive industrial free cash flow by 2027.

Industrial available liquidity ended 2025 at approximately 46 billion euros, representing a 30% ratio compared to net revenues, providing some balance sheet runway. The board has authorized the issuance of up to 5 billion euros ($5.9 billion) in non-convertible hybrid bonds.

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Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on_ X__ and on__ Instagram__._

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