Stellantis N.V., represented on the New York Stock Exchange by the ticker STLA, faced a steep decline in its share price following the announcement of expected net losses for the full fiscal year. This warning accompanies a large-scale business transformation involving extensive charges estimated at around €22 billion (approximately $26 billion), which are intended to facilitate a major reset across the company's operations. These measures focus on product realignment, cost-cutting strategies, and strengthening the balance sheet in preparation for a forthcoming strategic plan slated for release in May.
In conjunction with these developments, Stellantis also revealed the sale of a 49% stake in NextStar Energy to LG Energy Solution, signaling a strategic partnership move in the energy sector.
Fourth-Quarter Shipment Performance
The preliminary operating results for Stellantis in the fourth quarter of fiscal 2025 present a mixed picture but include promising elements. Total shipments during this quarter reached approximately 1.5 million units, marking a year-over-year increase of 9%. This growth is largely attributed to significant gains in North America, alongside improvements in South America, the Middle East, Africa, and the Asia-Pacific region.
A detailed geographic breakdown reveals that North American shipments surged by 43% year over year to about 422,000 units. This uptick is credited to normalized inventory levels and strong consumer demand, which subsequently led to an approximately 150% increase in orders. The rise in demand was supported predominantly by new and updated models under the Jeep, Ram, and Dodge brands.
Elsewhere, other international markets observed shipment gains of 6% year over year. South America experienced a 7% increase, the Middle East & Africa region a 2% rise, while China, India, and the Asia-Pacific area achieved a 20% growth in shipments collectively. Conversely, Stellantis reported a 4% decline in shipments in Enlarged Europe to roughly 667,000 units, driven by decreases in both Passenger Car and Light Commercial Vehicle segments.
Business Realignment and Strategic Reset
Stellantis has completed an exhaustive review of its overall business strategy and cost framework as part of a broader reset effort ahead of the announcement of a new strategic plan in May. Indications that these restructuring efforts are beginning to bear fruit include the return to positive volume growth observed in the second half of 2025, where shipments totaled 2.8 million units—a rise of 11% year over year.
Despite these operational improvements, the transformation imposed sizable charges amounting to approximately €22.2 billion in the latter half of 2025. Importantly, these costs are excluded from the adjusted operating income metrics. The total includes about €6.5 billion expected as cash outflows, which are planned to be settled over the next four years.
These strategic actions extend from earlier decisive steps taken during the year 2025, which have begun to deliver positive outcomes, evidenced by the resurgence of volume and net revenue growth in the year's second half, higher customer and dealer order intake, and advances in initial quality performance metrics.
Financial Outlook for 2026
Looking ahead, Stellantis forecasts enhancements in net revenues, adjusted operating income margins, and industrial free cash flow for 2026. The company anticipates an adjusted operating margin in the low single-digit percentage range. This outlook factors in an estimated €1.6 billion in net tariff expenses for 2026, which represents an increase from approximately €1.2 billion incurred in 2025.
In light of the anticipated net loss for 2025, Stellantis has declared that it will not be distributing dividends in 2026. To further reinforce its financial standing, the company’s board has authorized the issuance of up to €5 billion in non-convertible, subordinated perpetual hybrid bonds. Additionally, Stellantis projects maintaining industrial liquidity of about €46 billion at the close of the year.
Market Reaction and Share Price Performance
The market responded sharply to these updates, with Stellantis stock experiencing a 21.28% decline during premarket trading, settling near $7.51 per share. This downturn establishes a new 52-week low for the automaker’s share price, reflecting investor apprehension regarding the company’s financial guidance and restructuring charges.
The evolving scenario invites close monitoring as Stellantis navigates this pivotal period of transformation while reporting operational improvements juxtaposed against substantial financial restructuring costs.