Stellantis N.V. faced a severe market selloff, with its U.S.-listed shares closing at $7.28, marking a 23.8% decline. The steep drop followed the company's disclosure of significant strategic shifts in its electric vehicle operations.
Major Financial Reset
The automaker announced it will recognize approximately €22.2 billion in charges during the second half of 2025. As part of this restructuring, Stellantis has suspended its dividend payment scheduled for 2026. The company indicated it may issue up to €5 billion in hybrid bonds to strengthen its balance sheet.
Management attributed the substantial charges to slower-than-anticipated growth in battery-electric vehicle demand. The costs stem from revising product plans, adjusting EV supply chain capacity, and modifying warranty provisions. For the latter half of 2025, Stellantis anticipates reporting a net loss and negative industrial free cash flow.
Strategic Moves and Asset Sales
In a key divestment, Stellantis will sell its 49% stake in NextStar Energy to LG Energy Solution, though it will continue procuring batteries from the Windsor, Ontario facility. Concurrently, Automotive Cells Company (ACC)—a joint venture involving Stellantis, Mercedes-Benz, and TotalEnergies—has abandoned plans to construct battery gigafactories in Italy and Germany.
Despite the broader challenges, the company reported a 9% year-over-year increase in fourth-quarter 2025 shipments to 1.5 million vehicles. This growth was driven by a 43% surge in North America, though European shipments declined 4% due to competitive pressures and weaker commercial vehicle sales.
Forward Outlook
CEO Antonio Filosa described the actions as a "reset" of the organization and supply chain to align with actual customer demand. CFO João Laranjo projected that Stellantis will return to profitability across all operations in 2026. The company forecasts mid-single-digit percentage revenue growth for 2026, with adjusted operating margin expected in the low single digits. Management aims to achieve positive industrial free cash flow by 2027.
Investors are now focused on the full-year 2025 earnings report scheduled for February 26, which will provide audited financials and regional details. A broader strategy update is planned for the Investor Day on May 21.