Stellantis Earnings: A Bumpy Ride in 2024, but Hope for 2025

Stellantis, the world's fourth-largest automaker, has revealed its full-year 2024 results, and it's been a bumpy ride for the company. Net revenues dropped by 17% compared to 2023, with consolidated shipment volumes decreasing by 12%. The company's net profit plummeted by 70%, and adjusted operating income (AOI) fell by 64% with an AOI margin of 5.5%. Industrial free cash flows were negative €6 billion, reflecting the decline in income and temporary enlarged working capital impact due to production adjustments (Stellantis, 2025).

The generational product portfolio transition, which began in 2024, has had a significant impact on Stellantis' financial performance. The company started rolling out new multi-energy platforms and products, leading to temporary gaps in product offerings and contributing to the decline in revenues and profits. However, Stellantis expects that the impact of the product portfolio's coverage gaps has peaked, and the benefits of the generational new product wave will become apparent in 2025 and beyond (Stellantis, 2025).



Stellantis' interim leadership team has taken quick, decisive actions to improve the company's performance and profitability. These actions include completing inventory management initiatives, prioritizing critical launches, making better use of available flexibilities under CO2 regulations, working together with dealer bodies, strengthening communication with suppliers, elevating engagement with governments and regulators, and empowering regions to increase the speed of decision-making and rigor of execution (Stellantis, 2025).

The company's 2025 financial guidance includes "Positive" net revenue growth, "Mid-Single Digits" AOI margin, and "Positive" industrial free cash flows, reflecting both the early stage of the commercial recovery as well as elevated industry uncertainties (Stellantis, 2025). Stellantis' dedicated and talented people are driving forward with energy and determination, engaging with key stakeholders and moving decision-making closer to customers. The company remains firmly focused on gaining market share and improving financial performance as 2025 progresses (Stellantis, 2025).

In conclusion, Stellantis' 2024 earnings reveal a challenging year for the automaker, with a significant drop in profits and cash flows. However, the company's strategic initiatives and the expected benefits of the generational product portfolio transition in 2025 offer hope for a return to profitable growth and positive cash generation. Investors should keep a close eye on Stellantis' progress in the coming year to assess the company's ability to execute on its strategic plan and deliver on its financial guidance.