Stellantis (NYSE: STLA) ended 2024 with net profit down 70% year-over-year, dropping to €5.5 billion from €18.6 billion in 2023, largely driven by diminished global shipments, temporary gaps in product offerings, and the strategic drive to reduce dealer inventories.
The carmaker reported net revenues of €156.9 billion, reflecting a 17% decline from €189.5 billion in 2023. These pressures translated into a 64% decrease in adjusted operating income, bringing the figure down to €8.6 billion with an AOI margin of 5.5%, off from 12.8% in 2023.
Industrial free cash flows were negative €6.0 billion, marking a sharp reversal from the €12.9 billion in positive flows recorded in 2023. Stellantis ended 2024 with €49.5 billion in total industrial available liquidity, while its industrial net financial position declined to €15.1 billion from €29.5 billion a year earlier.
Heightened sales incentives, higher warranty costs, and negative product mix effects weighed on profitability, especially in North America and Enlarged Europe. North America endured a 25% year-over-year shipment decline, as multiple discontinued models and delayed product launches added to the pressure.
Global consolidated shipments slid 12%, reflecting fewer available models and the push to cut back on excess inventory. North America, a historically lucrative region for the company, faced a pronounced inventory realignment, with US dealer stock down 20% to 304,000 units by year-end. Enlarged Europe also saw an 8% dip in shipments, partly due to delayed launches of vehicles on the Smart Car platform.
Despite the difficulties, Stellantis remains publicly committed to resuming revenue growth and delivering “mid-single digits” AOI margin in 2025. The automaker also anticipates positive industrial free cash flow next year, hinging on a successful wave of new product launches on STLA Medium, STLA Large, and STLA Frame platforms.
Notably, the firm also proposed a dividend of €0.68 per share, equivalent to a 5% yield at current market prices.
All this was against a backdrop of the search for a new CEO, expected to conclude in the first half of 2025, to replace former CEO Carlos Tavares who quit in December.
“We are firmly focused on gaining market share and improving financial performance as 2025 progresses,” said Chairman John Elkann.
Stellantis last traded at $14.03 on the NYSE.
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