Stellantis reports €22.3 billion loss as electric shift reversal weighs heavily

Thursday 26 February 2026 - 07:20

By: Dakir Madiha

Stellantis reports €22.3 billion loss as electric shift reversal weighs heavily

Stellantis has reported a record €22.3 billion net loss for the 2025 fiscal year, marking the worst result in the automaker’s history. The results reveal the high financial toll of dismantling its costly electric vehicle expansion strategy, a move that led to €25.4 billion in charges tied to discontinued projects and write-downs. Revenue slipped by 2 percent to €153.5 billion, while industrial free cash flow remained negative at €4.5 billion, prompting the board to suspend dividend payments for 2026 and announce up to €5 billion in hybrid bond issuance to reinforce liquidity.

According to Chief Executive Officer Antonio Filosa, the losses highlight a misjudgment of the global EV transition pace and underscore the company’s renewed strategy focusing on consumer freedom across electric, hybrid, and traditional engines. Roughly €14.7 billion of the impairments came from realigning product portfolios with market demand, including €6 billion in platform write-downs for underperforming battery-electric models and €2.9 billion in cancelled product lines such as the Ram 1500 BEV. Additional costs included €4.1 billion in warranty provisions and €2.1 billion in reduced battery investments, with €6.5 billion in expected cash outflows over four years.

The downgrade in investor confidence has extended to credit ratings. Moody’s and S&P Global both cut Stellantis to the lowest investment-grade tier, Baa3 and BBB– respectively, signaling concerns about sustained negative cash flow through 2026. Analysts anticipate another year of financial strain before stabilization returns to the group’s operations.

Despite the downturn, the second half of 2025 offered tentative signs of recovery. Net revenues rose 10 percent year-on-year to €79.2 billion, driven by strong demand in North America, where deliveries surged 39 percent. Industrial free cash flow improved by 73 percent compared with the same period in 2024. The group closed the year with €46 billion in available liquidity and issued preliminary guidance for moderate revenue and margin growth in 2026, aiming for positive free cash flow by 2027.

Filosa has characterized the coming year as one of disciplined execution. Stellantis plans to rebalance its product mix to reflect realistic market adoption rates for electric mobility, reintroducing high-margin models like the Jeep Cherokee, Dodge Charger SIXPACK, and Ram 1500 HEMI V8. The automaker will also expand its hybrid lineup in Europe while maintaining a selective EV offering. A comprehensive strategic update is scheduled for presentation in Auburn Hills, Michigan, on May 21, where investors are expected to assess the progress of the turnaround effort.