Stellantis operating income more than triples in Q2, driven by North America
Stellantis Q2 Financial Performance Overview
MILAN, July 30 (Reuters) - Stellantis said on Thursday its operating income more than tripled in the second quarter, driven by strong revenue growth in North America, helping the automaker generate €1 billion ($1.15 billion) in industrial free cash flows.
The figures suggest the Fiat-to-Jeep maker is starting to benefit from CEO Antonio Filosa's push to revive sales after a prolonged downturn, which led to the ousting of his predecessor Carlos Tavares in late 2024 and to around €22 billion in charges earlier this year.
Filosa has focused on restoring volumes and regaining market share, betting that a sales recovery would lay the groundwork for a broader turnaround of the group.
Regional Performance Breakdown
North America Up, Europe Flat
Adjusted earnings before interest and taxes (EBIT) amounted to €773 million in the April to June period, from €213 million a year earlier, the French-Italian manufacturer said on Thursday.
That was below an analyst consensus from a Reuters poll of €914 million.
Second-quarter revenues rose 13% year-on-year, to €43.48 billion, with a 32% increase in North America, but with zero growth in Enlarged Europe, the automaker's other main market.
Future Outlook and Strategic Initiatives
Industrial Free Cash Flow Generation Expected in 2027
The company, which in May unveiled a new long term business plan focused on new models, partnerships in manufacturing and technology and a more disciplined capital allocation, confirmed its full-year forecasts.
Long-term Forecasts and Guidance
They include a mid-single-digit net revenue growth and a low-single-digit adjusted operating income margin in 2026, as well as expected positive industrial free cash flows in 2027.
Stellantis said it expected US tariff costs for 2026 to total €1-1.2 billion, and warned that its second half performance would be skewed towards the fourth quarter following a planned production shutdown during the summer.
($1 = 0.8732 euros)
(Reporting by Giulio Piovaccari in Milan and Gilles Guillaume in Paris; writing by Giulio Piovaccari; editing by Alvise Armellini)
