Stellantis reports first annual loss since 2021 as it retreats from EV targets

Stellantis NV (NYSE:STLA, EPA:STLA) has reported its first full-year loss since the 2021 merger, citing a strategic shift away from aggressive electric vehicle (EV) targets as a key factor in its results.

The Netherlands-headquartered automaker said the move reflects a renewed focus on customer choice and “resetting” its product and powertrain strategy.

For the full year, Stellantis recorded net revenue of €153.5 billion, down 2% from 2024, primarily due to foreign exchange headwinds and first-half pricing declines.

The company posted a net loss of €22.3 billion, compared with a €5.5 billion profit the previous year, driven largely by €25.4 billion in one-time charges tied to the strategic shift.

Adjusted operating income was negative €842 million, with an AOI margin of -0.5%. Industrial free cash flow also fell to negative €4.5 billion.

The second half of 2025, the first under the company’s renewed leadership team, showed signs of stabilization, according to Stellantis. Net revenues grew 10% year-over-year, while industrial free cash flow improved roughly 50% from the first half of the year and 73% from H2 2024.

“Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” Stellantis CEO Antonio Filosa said in a statement.

“In the second half of the year we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top line growth.”

For 2026, Stellantis reiterated guidance, projecting a mid-single-digit percent increase in net revenues, a low-single-digit AOI margin, and improved industrial free cash flow year-over-year, with sequential improvement expected from the first half to the second half of the year.

US-listed shares of Stellantis traded more than 3% higher in the early afternoon on Thursday at about $8 as investors focused on signs of the company’s turnaround.