After reporting a €5.5 billion profit in 2024, global carmaker Stellantis reported a €22.3 billion net loss for 2025.
The company’s official financial reports, published on Friday, show that €25.4 billion in exceptional charges related to a comprehensive strategic reset of its operations and product roadmap was the main cause of the loss.
After overestimating the pace of the global shift to electric vehicles (EVs) and facing changing market and regulatory conditions, the company said the results reflect a necessary “re-initialisation” of its business model.
The numbers behind the massive loss
In 2025, Stellantis recorded net revenues of €153.5 billion, a 2% decrease from the previous year.
The reduction was mainly attributed to lower pricing in the first half of the year and adverse foreign exchange effects, particularly the weakening of the US dollar against the euro.
Although total vehicle shipments increased by only 1% over the year, exceptional items caused profitability to decline sharply.
The company reported:
• A net loss of €22.3 billion. The operating loss was €26.3 billion.
• Adjusted operating income (AOI) of negative €842 million.
• An adjusted operating profit margin of -0.5%.
• Negative industrial free cash flow of €4.5 billion.
The €25.4 billion in exceptional charges exceeds the €22.2 billion previously reported in February, due to the inclusion of additional provisions from the first half of the year.
The “strategic reset”: what is it?
The majority of the exceptional charges are related to a comprehensive review of Stellantis’ electrification plan.
The company said it had misjudged the pace at which consumers would adopt electric vehicles.
It therefore decided to reassess its product plans to better align with actual demand and regulatory changes, particularly in the United States.
According to the company’s report, the reset includes:
• Modifications and terminations of specific EV initiatives
• Changes to contractual and warranty provisions
• The financial impact of previously announced workforce reductions in Europe
• Broader reorganisation initiatives affecting the second half of the year
Stellantis stated that it will prioritise a balanced offering that includes electric, hybrid, and internal combustion engine vehicles, rather than focusing primarily on full electrification.
This shift is presented as restoring customers’ “freedom of choice.”
Improvements in the second half
The company reported improved operating performance in the second half of 2025.
During the period, vehicle shipments reached 2.8 million units, representing an 11% year-over-year increase.
Net revenues rose to €79.2 billion, up 10% compared with the same period in 2024.
Shipments to North America increased by 39%, reflecting improved commercial performance and more stable inventory levels.
In the second half of the year, Stellantis also reported successful product launches and progress in quality improvements.
Despite the net loss, Stellantis ended 2025 with €46 billion in available industrial liquidity, providing financial flexibility as it implemented its strategic transformation.
To preserve balance sheet strength and support the turnaround, the board decided to suspend dividend payments for 2026 and authorise the issuance of hybrid bonds of up to €5 billion.
These measures are intended to maintain operational stability and strengthen the capital structure during the restructuring process.
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