Stellantis, the multinational automaker behind brands like Jeep, Fiat, and Peugeot, announced on Wednesday that it expects a return to revenue growth and positive cash flow in 2025.
The company is working to recover from a difficult year marked by declining sales, leadership changes, and broader industry pressures.
Chairman John Elkann, who took charge following the departure of CEO Carlos Tavares in December, emphasized Stellantis’ commitment to improving financial performance.
“We are firmly focused on gaining market share and improving financial performance as 2025 progresses,” Elkann said in a statement.
Despite expectations of recovery, Stellantis provided a cautious outlook, predicting a “mid-single-digit” margin on its adjusted operating profit for 2025—comparable to the 5.5% margin achieved in 2024 but significantly lower than the double-digit returns seen in previous years.
In 2024, the company faced a 17% drop in total revenue, falling to €157 billion ($165 billion), alongside a 12% decline in global shipments. Its North American market struggled, with adjusted operating income plummeting by 80% due to a weakened product lineup and challenges in dealer relations. Meanwhile, Stellantis’ European operations also faced headwinds, with unit sales dropping 7.3% for the year and 16% in January 2025.
These difficulties resulted in a sharp decline in profits, with net earnings falling 70% to €5.5 billion for 2024. The second half of the year was particularly difficult, as Stellantis’ adjusted earnings before interest and taxes (EBIT) shrank to €185 million—down from €10.2 billion in the same period of 2023.
Stellantis is implementing a range of measures to regain financial stability. The company is launching 10 new models and adopting a more flexible product strategy to address gaps in its lineup. Additionally, management restructuring has given more decision-making power to regional executives, a shift from the centralized leadership style of the previous CEO.
The search for a new chief executive is ongoing, with Stellantis aiming to make an appointment in the first half of 2025. Elkann has stated that the company wants to be firmly on the path to recovery before finalizing its leadership transition.
While Stellantis’ leadership remains optimistic about the turnaround, investors remain cautious. The company’s stock price dropped by 4% following the earnings announcement. Challenges such as sluggish European demand, competition from Chinese automakers, and potential US tariffs continue to cast uncertainty over its financial outlook.
To reassure shareholders, Stellantis has proposed a dividend of €0.68 per share for 2024, down from €1.55 per share the previous year. The company also emphasized that its inventory reduction initiatives in the US are now complete, positioning it for a more stable performance in the coming months.
With input from CNBC, Reuters, the Financial Times, and Bloomberg.
