Key facts
- Stellantis reported Q2 adjusted EBIT of €773 million, missing analyst expectations of €914 million.
- The company's shares fell sharply, trading down over 4% after an earlier drop of up to 8%.
- Analysts pointed to negative pricing in Europe, higher costs, currency swings, and tariffs as headwinds.
- Stellantis reaffirmed its full-year revenue growth forecast of mid-single-digit percentage and a low-single-digit adjusted operating income margin.
- The automaker expects U.S. tariff costs to be between €1 billion and €1.2 billion for the year.
Stellantis, the Franco-Italian automotive group, reported second-quarter adjusted earnings before interest and tax (EBIT) of €773 million, falling short of the €914 million anticipated by analysts. This miss sent the company's shares lower, with Milan-listed stock down over 4% and having fallen as much as 8% in early trading.
Analysts from Citi highlighted a low operating income margin of 1.8%, attributing the disappointing results to negative pricing in Europe, increased administrative and research and development costs, unfavorable currency swings, and tariffs. This performance places Stellantis alongside other European automakers like Volkswagen and BMW, which have also reported weaker quarterly results amid growing competition from Chinese carmakers and rising costs.
Despite the profit miss, Stellantis reaffirmed its full-year forecasts, projecting mid-single-digit revenue growth and a low-single-digit adjusted operating income margin. The company also anticipates U.S. tariff costs to range between €1 billion and €1.2 billion for the current year. CEO Antonio Filosa's turnaround strategy, which focuses on restoring volumes and market share, is under scrutiny as investors seek more concrete evidence of its success, especially after the company booked around €22 billion in charges earlier this year when scaling back electrification ambitions.