Auto manufacturer Stellantis readjusts its outlook, but warns of difficult choices ahead due to a $1.7 billion financial hit from tariffs.
Stellantis, a leading multinational automotive company, has reported a significant financial setback in the first half of 2025, posting a net loss of €2.3 billion ($2.5 billion USD). This loss is largely attributed to the impact of tariffs, particularly U.S. tariffs, and disruptions from production gaps as certain models transition or were discontinued.
The company's net revenues for the first half of 2025 stood at €74.3 billion ($80.5 billion USD), reflecting a 13% year-on-year drop, primarily driven by annual declines in North America, among other regions. North American shipments fell 23%, net revenues in that region dropped 26%, and adjusted operating income turned negative due to higher sales incentives and reduced fleet orders.
In April 2025, Stellantis had suspended its financial guidance due to uncertainty related to evolving tariff policies and their market impact. However, the company has since reinstated its 2025 financial guidance, projecting higher net revenues in the second half of the year, a return to low-single-digit adjusted operating income profitability, and improved industrial free cash flow. Stellantis expects a total net tariff impact of €1.5 billion ($1.73 billion) for the full year 2025, with €0.3 billion incurred in H1.
The recent framework agreement between former President Donald Trump and the European Union on tariffs has provided some relief, alleviating a portion of the tariff-related headwinds for Stellantis. However, the company's stock has responded negatively to its financial results and reinstated guidance, falling 3.4% premarket and down 21% year-to-date, with investor sentiment turning more neutral.
CEO Antonio Filosa emphasizes that 2025 remains challenging but anticipates gradual improvement and benefits from new products in the second half of the year. Filosa has also stated that Stellantis would provide an updated business plan at its capital markets day early next year.
In addition, Filosa wants the administration to recognize the high U.S. content in some vehicles when it comes to duties. Automotive industry groups have expressed deep concern about the costs associated with the new tariff reality. Despite the challenges, Filosa expressed confidence in the company's ability to fix its issues and re-establish profitable growth.
| Aspect | Details | |------------------------|--------------------------------------------------| | H1 2025 Net Loss | €2.3 billion ($2.5 billion USD) | | H1 2024 Profit | €5.6 billion | | Net Revenue H1 2025 | €74.3 billion ($80.5 billion USD), down 13% | | North America Shipments| Down 23% | | 2025 Tariff Impact | €1.5 billion expected, €0.3 billion in H1 | | Financial Guidance | Reinstated with outlook for recovery in H2 | | Impact of Trump's Tariffs | Negative but partially eased by EU-US framework agreement |
- Stellantis, a leading automotive company, recorded a €2.3 billion ($2.5 billion USD) net loss in the first half of 2025, marking a significant financial setback.
- The loss can be attributed to the impact of tariffs, particularly U.S. tariffs, and disruptions from production gaps as certain models transitioned or were discontinued.
- Despite the financial setback, Stellantis' net revenues for the first half of 2025 stood at €74.3 billion ($80.5 billion USD), reflecting a 13% year-on-year drop.
- In North America, shipments fell 23%, net revenues dropped 26%, and adjusted operating income turned negative due to higher sales incentives and reduced fleet orders.
- In April 2025, Stellantis had suspended its financial guidance due to uncertainty related to evolving tariff policies and their market impact, but reinstated it in June, projecting improved financial results in the second half of the year.
- The recent framework agreement between former President Donald Trump and the European Union on tariffs has provided some relief, alleviating a portion of the tariff-related headwinds for Stellantis.
- Despite the challenges, CEO Antonio Filosa expressed confidence in the company's ability to fix its issues and re-establish profitable growth, with a plan to be presented at the capital markets day early next year.
