Stellantis Group reports first annual loss in 2025, CEO: Will adjust strategy to regain profit growth

Stellantis recently announced its full-year financial results for 2025, showing the group faced unprecedented challenges that year. The total net revenue was €153.5 billion (about 1.24 trillion RMB), down 2% from 2024. This decline was mainly due to unfavorable currency exchange rate fluctuations and lower net product prices in the first half of the year. More notably, the group reported a net loss of €22.3 billion (approximately 180.786 billion RMB), marking its first recorded annual loss.

The primary reason for the loss was the group’s extensive strategic adjustments to meet changing customer demands and regulatory environments, incurring costs of up to €25.4 billion. Specifically, on February 6, 2026, the group announced a major business restructuring, which resulted in approximately €22.2 billion (about 179.976 billion RMB) in additional expenses in the second half of 2025, with about €6.5 billion expected to be paid in cash over the next four years. These costs mainly related to product planning adjustments, electric vehicle supply chain optimization, modifications to warranty estimate procedures, and other expenses associated with workforce reductions in Europe.

Despite these severe challenges, Stellantis remains optimistic about the future. The group expects a median single-digit percentage growth in net revenue in 2026, with adjusted operating profit margins returning to low single digits, and industrial free cash flow increasing year-over-year. The group believes that from the first half to the second half of 2026, operational conditions will gradually improve, with the goal of achieving positive industrial free cash flow in 2027.

Stellantis CEO Antonio Filosa stated in a release that the 2025 performance reflected overestimations of the energy transition pace and the necessity to realign the business around customer needs. He noted that the group saw initial positive signs in the second half of 2025, including improvements in product and service quality, successful launches of new products, and revenue recovery year-over-year. In 2026, the group’s focus will be on addressing previous operational execution gaps to drive profitable growth.