Stellantis N.V. (NYSE:STLA) stock tanked Friday after the automaker warned of a full-year net loss, flagging a sweeping business reset that includes roughly 22 billion euros ($26 billion) in charges as it moves to realign products, cut costs, and shore up its balance sheet ahead of a new strategic plan.
Moreover, Stellantis disclosed the sale of a 49% stake in NextStar Energy to LG Energy Solution.
Preliminary Results
Stellantis posted mixed preliminary operating trends for the fourth quarter of fiscal 2025.
Fourth-quarter shipments stood at around 1.5 million units, up 9% year over year (Y/Y), aided by strong growth in North America and increases in South America and the Middle East & Africa.
By geography, North America shipments rose by 43% Y/Y to about 422,000 units year over year, on normalized inventory levels and strong demand. Orders surged roughly 150% Y/Y, led by new and updated Jeep, Ram, and Dodge models.
Also, in other regions, shipments increased by 6% Y/Y, led by growth in South America (+7% Y/Y), the Middle East & Africa (+2% Y/Y), and China, India & Asia Pacific (+20% Y/Y).
Meanwhile, Enlarged Europe shipments fell by 4% Y/Y to roughly 667,000 units, on declines across both Passenger Car (PC) and Light Commercial Vehicle (LCV) segments.
Business Realignment
Apart from this, Stellantis stated that it has completed a comprehensive review of its strategy and cost structure as part of a broader business reset, ahead of unveiling a new strategic plan in May.
Stellantis’ initial measures are already showing results, as evidenced by a return to positive volume growth. In the second half of 2025, shipments reached 2.8 million units, up 11% Y/Y.
Also, the business reset led to charges of about 22.2 billion euros, excluding adjusted operating income, in the second half of 2025. This includes roughly 6.5 billion euros in cash outflows to be paid over the next four years.
The measures build on decisive actions taken in 2025 that are already showing early results, including a return to volume and net revenue growth in the second half of 2025, stronger customer and dealer orders, and improvements in initial quality metrics.
2026 Outlook
Stellantis projects improvements in net revenues, adjusted operating income margin, and industrial free cash flow in 2026.
The company expects an adjusted operating margin in low single-digit percentages, including anticipated 1.6 billion euros in net tariff expenses (1.2 billion euros in 2025).
Given the net loss in 2025, Stellantis will not pay a dividend in 2026, and its board has approved the issuance of up to 5 billion euros in non-convertible, subordinated perpetual hybrid bonds to support balance-sheet strength, with industrial liquidity of around 46 billion euros at year-end.
STLA Price Action: Stellantis shares were down 21.28% at $7.51 during premarket trading on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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