Stellantis NV Earnings - Q2 2025 Analysis & Highlights
Key Takeaways
The Stellantis Q2 2025 earnings call highlighted a tough first half with sequential improvements, new product launches, and a focus on growth, execution, and profitability. Key discussion points included financial performance, regional segment results, tariff impacts, and future guidance.
Key Financial Results
Consolidated shipments decreased by 7% to 2.7 million units.
Net revenue declined by 13% to €74 billion.
Adjusted diluted earnings per share generally tracked AOI development.
Industrial free cash flow was an outflow of €3 billion in the first half.
AOI came in at €540 million with a 70-basis point margin.
Pricing was down 2% in the first half of 2025.
Business Segment Results
North America was impacted by tariffs, lower fleet performance, and improved inventory discipline.
Europe's results reflected lower industry volumes in LCVs, product transition gaps, and a €500 million provision for a campaign on a 1.5-liter diesel engine.
South America reflected continued market share leadership and industry growth in Brazil and Argentina.
Middle East and Africa experienced FX headwinds due to a decline in the Turkish lira, around €600 million, but continued business momentum.
Capital Allocation
Industrial liquidity finished the first half at €47 billion, consisting of €31 billion of cash and liquid securities.
The €31 billion was bolstered by first half bond issuances of €3.6 billion.
Liquidity figure includes €16 billion in undrawn committed credit facilities.
Industry Trends and Dynamics
13% lower industry volumes in LCVs in Europe.
Industry growth in South America, specifically in Brazil and Argentina.
Macroeconomic Environment
Adverse effects from tariffs and foreign exchange headwinds.
FX headwinds to AOI in the Middle East and Africa due to a decline in the Turkish lira, constituting around €600 million.
Net tariff expense for the year expected to be approximately €1.5 billion.
Growth Opportunities and Strategies
Launching 10 new products in 2025, including B-segment products in Europe and iconic nameplates in North America.
Focus on improving industrial execution, product quality, and reinvigorating fleet channels performance.
Reintroducing the SRT division for North American brands to create distinctive, high-performance products.
Ramping up production of Smart Car products in Europe.
Bringing back iconic products and powertrains such as the Jeep Cherokee, Dodge Charger ICE, and HEMI V8 engine in the US.
Improving customer experience through elevated product quality in both North America and Europe.
Focusing on growth in North America by launching new products with accretive AOI margins.
Financial Guidance and Outlook
Net revenues are expected to increase half-over-half.
AOI margin is expected to be in the low-single-digits.
Improvements in industrial free cash flow are expected compared to the first half of 2025.
Long-term strategic plan to be presented at a Capital Markets Day in early 2026.
Brand Portfolio Management
Aiming to be more effective and efficient in brand portfolio management.
Recruiting talents to take care of brands from the market.
Relationship with US Dealers
Committed to a much better dialogue with the dealer network.
Order book grew more than 90% year-over-year.
