Stellantis, the automotive group behind brands like Jeep, Dodge, Fiat, Chrysler, and Peugeot, has reinstated its financial guidance after reporting a first-half net loss of €2.3 billion for 2025. This marks a significant reversal from the €5.6 billion profit it posted during the same period in 2024. The company had warned of the loss in a recent trading update, citing the need to reconcile market expectations with actual performance.
The company attributed part of its financial strain to tariffs, estimating the full-year impact at around €1.5 billion, including €300 million incurred in the first half. This comes in the context of evolving trade policies under President Donald Trump’s administration, which recently agreed to a trade framework with the European Union. As part of that deal, a 15% blanket tariff will be imposed on most EU imports, down from a previously threatened 30% rate and significantly below the existing 27.5% duty on European autos. While the agreement eases fears of a full-scale trade war, automakers remain concerned about the added financial burden.
Stellantis CEO Antonio Filosa, who took the helm last month, said the company has been engaging with U.S. authorities to ensure vehicles with high American content are treated fairly under the new trade terms. He acknowledged challenges in North America, including inventory issues and strained relationships with dealers and employees. Still, he expressed confidence in the company’s ability to recover by leveraging its people, new products, and brand strength.
Filosa emphasized that 2025 has been a difficult year but highlighted signs of gradual improvement. He reiterated the company’s commitment to taking bold steps to restore profitability and unveiled plans to relaunch popular U.S. models while introducing new offerings. An updated business plan will be shared at Stellantis’ capital markets day early next year.
The company now forecasts improved net revenues, modest adjusted operating income profitability, and higher industrial free cash flow in the second half of the year, assuming current tariff and trade rules remain stable. Stellantis had suspended financial guidance in April due to trade uncertainties but has now resumed projections amid a more predictable policy environment.
First-half revenue fell 13% year-on-year to €74.3 billion, driven largely by declines in the North American market. Despite an initial dip of 4.5% in Milan-listed shares following the earnings release, the stock later pared losses as investors digested the company’s renewed guidance and recovery plan.
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