Stellantis (STLA) Stock Falls as Company Posts First-Ever Annual Loss on EV Writedowns

TLDR

• Stellantis posted its first-ever annual loss of €22.3 billion ($26.3B) for full-year 2025
• The loss was driven by €25.4 billion in write-downs tied to its scaled-back EV strategy
• The company suspended its 2026 dividend and issued up to €5 billion in hybrid bonds
• Net revenues rose 10% in H2 2025, with vehicle shipments up 11% year-on-year
• Stellantis expects positive industrial free cash flow only in 2027, with tariff costs hitting €1.6B this year

Stellantis reported a full-year 2025 net loss of €22.3 billion ($26.3 billion), its first annual loss since the company was formed in 2021.

The result is a sharp reversal from a €5.5 billion profit in 2024.

The losses were largely driven by €25.4 billion in write-downs, the bulk of which — €22.2 billion — were taken in the second half of the year and announced on February 6.

Stellantis N.V., STLA

CEO Antonio Filosa linked the write-downs directly to a misjudgment on EV adoption. “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition,” he said.

Stellantis has joined a growing list of automakers pulling back on EV commitments. GM, Ford, and Honda have all booked similar charges in recent months.

The write-downs also reflect vehicle quality problems that Filosa attributed to cost-cutting under former CEO Carlos Tavares.

About €6.5 billion of the write-downs involve cash payments, expected to be spread over four years starting in 2026.

On an adjusted operating basis, Stellantis recorded a loss of €842 million for the full year, compared to a €8.65 billion profit in 2024.

H2 2025 Shows Some Recovery

Not all the numbers were grim. Net revenues in the second half of 2025 rose 10% year-on-year to €79.25 billion.

Vehicle shipments in that period rose 11%, with North America posting the strongest contribution at 2.8 million consolidated units.

Stellantis said these figures reflect improved operational efficiencies and a more disciplined commercial approach.

Dividend Suspended, Bonds Issued

The company confirmed it will not pay a dividend in 2026, a move it had previously flagged.

To shore up its finances, Stellantis issued up to €5 billion in hybrid bonds.

Looking ahead, Stellantis reiterated its 2026 guidance: mid-single-digit percentage growth in net revenues and a low-single-digit adjusted operating margin.

Positive industrial free cash flow isn’t expected until 2027.

U.S. tariff costs are projected to rise to €1.6 billion in 2026, up from €1.2 billion in 2025.

Milan-listed stock was down around 0.3% in morning trading on Thursday, after already losing roughly 20% following the February 6 impairment announcement.

The stock has fallen more than 30% so far this year and hit a record low of €5.73 on February 6.

Stellantis’s 2026 tariff exposure of €1.6 billion reflects its heavy reliance on the U.S. market as its primary profit driver.

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