Stellantis said on Tuesday it expected higher net revenue and low single-digit operating income margin in the second half, despite increasing headwinds, as the carmaker aimed for a gradual recovery after a tough first half.
The company said its forecasts for the second half were based on tariff rules in place from Tuesday and estimated an overall tariff impact for 2025 of about €1.5bn, including €300m incurred in the first half.
The Franco-Italian group also forecast improved industrial free cash flow in the second half compared with the first six months, when it burnt cash for €3bn.
“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” new CEO Antonio Filosa said in a statement.
The Italian manager, a company veteran, was appointed in May after a disastrous performance in the crucial US market in 2024 forced the ousting in December of former boss Carlos Tavares.
Stellantis in April withdrew its guidance for a moderate recovery this year after a profit drop in 2024, citing an evolving trade scenario and uncertain effect of US tariffs.
Filosa, who faces the challenge of revamping product ranges and regaining market share and investors’ confidence, was set to make his first official appearance as CEO in a results call with analysts later in the day.
On Sunday, the US and the EU struck a framework trade agreement, imposing a 15% US import tariff on most EU goods — half the threatened rate — and averting a bigger trade war.
Stellantis, however, is exposed to 25% US tariffs on Mexico and Canada. Last year, more than 40% of the 1.2-million vehicles Stellantis sold in the US were imports, mostly from the two neighbouring countries.
For the first half, the maker of car brands including Jeep, Fiat, Peugeot and Ram broadly confirmed preliminary figures it released last week. They include a 13% drop in net revenues to €74.3bn, an adjusted operating income margin of 0.7% and a net loss of €2.3bn.
Efforts to cut excess inventories in the US brought net revenues in North America, historically Stellantis’ largest and most profitable market, to just more than €28bn in the first half, below more than €29.2bn in Europe in the same period.
Reuters
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