Stellantis Expects Sequential Improvement in H2, Despite Disappointing Market Reaction.

Stellantis reported a €2.3bn loss for H1 2025, but restored its financial outlook for 2025, expecting a sequential improvement in H2. The group anticipates an increase in net revenue and a low single-digit operating margin in H2. Stellantis plans to launch 10 new models in 2025 and is counting on commercial recovery and new products to accelerate growth. However, the share price fell 4.5% and analysts described the outlook as "too vague" or "disappointing."

Stellantis, the global automotive giant, has reported a significant loss for the first half of 2025, posting a net loss of €2.3 billion ($2.5 billion USD), a stark contrast to the €5.6 billion ($6.1 billion USD) profit it recorded in the same period last year. Despite the challenging financial results, the company has restored its financial outlook for the remainder of the year, expecting a sequential improvement in the second half of 2025.

The company's financial woes are attributed to a combination of external headwinds, including tariffs, weak markets, and production gaps due to discontinued models. North America and Enlarged Europe regions have been particularly hard-hit, with shipments and revenues declining due to these factors. However, Stellantis has managed to offset some of these losses with growth in South America, where shipments were up by 20% and revenues grew by 5%.

Stellantis' new CEO, Antonio Filosa, remains optimistic about the company's prospects. He stated, "2025 is turning out to be a tough year, but also one of gradual improvement. Signs of progress are evident when comparing H1 2025 to H2 2024, in the form of improved volumes, net revenues, and AOI, despite intensifying external headwinds." [1]

The company is banking on the launch of 10 new models in 2025 to accelerate growth. These include the return of beloved products such as the 5.7-liter HEMI® V8 in the 2026 Ram 1500, a new hybrid Jeep® Cherokee, and the gas-powered Dodge Charger SIXPACK. Additionally, the company plans to introduce the four-door Dodge Charger Daytona and several all-new STLA Medium-based vehicles before the end of the year.

Stellantis has also re-established financial guidance for H2 2025, expecting an increase in net revenue and a low-single-digit operating margin. The company anticipates improved cash flow and a return to profitability in the second half of the year.

However, the share price fell 4.5% following the announcement, and analysts have described the outlook as "too vague" or "disappointing." Despite these concerns, Stellantis is confident in its ability to navigate the challenges and emerge stronger from the second half of 2025.

References:
[1] https://moparinsiders.com/stellantis-posts-2-5b-loss-in-h1-2025-as-tariffs-model-gaps-hit-hard/
[2] https://www.automotiveworld.com/news-releases/stellantis-reports-first-half-2025-results-reflecting-external-headwinds-and-ongoing-recovery-actions-financial-guidance-re-established/