Stellantis (NYSE: STLA) disclosed a business reset that produced approximately €22.2 billion of charges in H2 2025 excluded from adjusted operating income, including €6.5 billion of cash payments expected over the next four years, alongside preliminary H2 2025 results showing €78–€80 billion of net revenues but a €19–€21 billion net loss.
The impairments translates to as much as US$26 billion, pushing the stock down as much as 27% in pre-market trading.
The largest block at €14.7 billion is tied to product plan realignment to customer preferences and new US emissions regulation assumptions, “largely reflecting significantly reduced expectations for BEV products.” This includes €2.9 billion of write-offs for cancelled products and €6.0 billion of platform impairments, plus €5.8 billion of projected cash payments over four years for cancelled products and other BEV programs now expected to run materially below prior volume projections.
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A second bucket at €2.1 billion is for resizing the EV supply chain, including €0.7 billion of cash payments expected over four years, linked to rationalizing battery manufacturing capacity.
The third bucket of writedowns totals €5.4 billion in “other changes,” dominated by €4.1 billion from a change in estimate for contractual warranty provisions and €1.3 billion of other charges including restructuring tied mainly to already communicated workforce reductions in the Enlarged Europe region.
Preliminary H2 2025 shows adjusted operating income of negative €1.2–€1.5 billion, operating cash flow of negative €2.3–€2.5 billion, and industrial free cash flow of negative €1.4–€1.6 billion, with Stellantis saying specific items pushed AOI margin below its guided low-single-digit range.
In recognition of a 2025 net loss, Stellantis will not pay a dividend in 2026, and its board authorized up to €5.0 billion of non-convertible subordinated perpetual hybrid bonds. Stellantis cited industrial available liquidity of approximately €46 billion at year-end, and separately detailed total available liquidity of €49.8 billion. That figure was comprised of €31.5 billion in cash, cash equivalents and financial securities plus €18.3 billion undrawn committed credit lines, with €45.7 billion attributed to industrial activities and €4.1 billion to financial services.
For 2026, Stellantis guides mid-single-digit net revenue growth, low-single-digit AOI margin, and improved industrial free cash flow year over year, including €1.6 billion in net tariff expenses versus €1.2 billion in 2025, and €2.0 billion of 2026 payments tied to H2 2025 charges. Stellantis expects positive industrial free cash flow in 2027.
Separately, LG Energy Solution agreed to acquire full ownership of NextStar Energy, with Stellantis selling its 49% stake, while remaining a customer sourcing battery products. NextStar has seen more than $5 billion invested to date, employs over 1,300 people, and targets 2,500 employees as it scales, with the transaction subject to approvals and other conditions.
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