Stellantis, the global automotive giant behind brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, on Thursday reported its first-ever annual loss, highlighting the challenges of overestimating the pace of the energy transition in the automotive sector. The company posted a full-year net loss of €22.3 billion ($26.3 billion) for 2025, a sharp reversal from a €5.5 billion profit the previous year, largely due to €25.4 billion in write-downs tied to its electric vehicle (EV) investments.
CEO Antonio Filosa said the results reflect the cost of overestimating how quickly the market would adopt EVs and the need to recalibrate the company’s strategy to balance EV, hybrid, and internal combustion offerings. “Our 2025 full-year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” he said. “In 2026, our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth.”
The write-downs come amid a broader industry trend of major automakers scaling back EV spending. Companies such as General Motors, Ford Motor Company, and Honda have all reported multi-billion-dollar charges in recent months, underscoring the volatility and uncertainty of the global transition to electric mobility.
Despite the historic loss, Stellantis highlighted operational improvements in the latter half of 2025. Consolidated shipments reached 2.8 million units, with North America posting the strongest contribution. Net revenues in the second half rose 10 percent year-on-year to €79.25 billion, driven by disciplined commercial strategies, operational efficiencies, and the strength of the company’s global brand portfolio. Adjusted operating losses narrowed to €842 million in 2025 from €8.65 billion in operating income a year earlier, indicating that efficiency measures are beginning to take hold.
Financial measures accompany the strategic reset. Stellantis suspended its 2026 dividend, as previously flagged, and announced plans to issue up to €5 billion in hybrid bonds to support operations. Looking ahead, the company expects mid-single-digit revenue growth and a low-single-digit adjusted operating margin for 2026, while projecting positive industrial free cash flow in 2027.
More Read
Filosa emphasized that the company’s long-term strategy will focus on offering “freedom of choice” to consumers, ensuring that product lines include EVs, hybrids, and internal combustion vehicles to meet diverse market needs. “We are adapting our investments to align with market realities while maintaining operational efficiency and long-term profitability,” he said.
Milan-listed shares of Stellantis briefly rose around 5 percent following the announcement, despite a broader downward trend in the stock year-to-date. Analysts noted that while the writedowns weigh heavily on 2025 results, the company’s global brand strength and operational discipline provide a foundation for recovery.
Industry observers say Stellantis’ experience underscores the broader challenges facing automakers in the energy transition. While EVs remain a central element of future mobility, miscalculations on timing, adoption rates, and infrastructure readiness can significantly impact balance sheets. The company’s recalibrated strategy reflects an industry-wide learning curve, balancing innovation with market realities.
More Read
As Stellantis navigates 2026, investors and analysts will watch closely to see how efficiently the company can execute its revised plan, maintain profitability, and recover from a year marked by unprecedented write-downs. With operational improvements already visible in H2 2025, management remains cautiously optimistic about returning to growth while adapting to the evolving dynamics of the global automotive market.
