Auto giant Stellantis on Tuesday reinstated its financial guidance, signaling a slow but steady recovery in the coming months despite ongoing challenges. The company, known for brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a first-half net loss of 2.3 billion euros ($2.65 billion), a sharp reversal from the 5.6 billion euros profit recorded during the same period in 2024. This loss was foreshadowed in a recent trading update, which cited a gap between market expectations and the company’s actual performance.
Stellantis updated its full-year tariff impact estimate to approximately 1.5 billion euros, with 300 million euros already affecting the first half of 2025. CEO Antonio Filosa expressed cautious optimism, emphasizing the company’s strengths and new products as key to turning the situation around. He acknowledged 2025 as a tough year but forecasted gradual improvement ahead, with the leadership committed to making difficult decisions to restore profitable growth. The company expects higher net revenues, low-single-digit adjusted operating income margins, and improved industrial free cash flow in the second half of the year, assuming current tariff policies remain stable. The backdrop includes a recent U.S.-EU trade framework reducing tariffs on European goods to 15%, down from a threatened 30%, easing fears of a damaging trade war but still posing cost concerns for the auto sector. Stellantis’ first-half net revenues fell 13% year-over-year to 74.3 billion euros, driven largely by declines in North America and other regions. Shares in Milan dipped by up to 4.5% before partially recovering during the morning session.