Sales on Stellantis. For analysts weak and below-expected data

(Il Sole 24 Ore Radiocor)- More selling continued on the Stellantis share on the Italian Stock Exchange following the publication of preliminary accounts for the first half of 2025 and a drop in global sales in the second quarter of the year.

In detail, Stellantis reported first-half revenue of EUR 74.3 billion and a net loss of EUR 2.3 billion. The company also reported that adjusted operating profit was EUR 0.5 billion, cash flow from industrial activities was negative EUR 2.3 billion, and industrial free cash flow was negative EUR 3 billion. However, Stellantis highlights the early stage of the actions taken to improve performance and profitability, 'with new products expected to deliver greater benefits in the second half of 2025'.

The results were 'weak and below expectations', noted the analysts of Intermonte, penalised by 'a disappointing trade performance and a number of adverse factors', including precisely the initiatives undertaken to improve profitability, the negative impact of industrial costs, an unfavourable geographic mix, exchange rates and tariffs. These factors had a 'significant impact' on the first-half results, the company explained, with an effect of EUR -0.3 billion. According to Jefferies experts, who maintain a Buy recommendation on the stock, although the numbers were 'weak and worse than consensus', they were nevertheless 'predictable'.

As the carmaker itself points out, 'in the absence of financial guidance, which was suspended by the company on 30 April, financial analysts' forecasts are currently the main parameter for market expectations', so the purpose of the disclosure of preliminary financial data is to 'bridge the gap between analysts' forecasts and the company's performance for the period'. Intermonte notes that, 'although there were no one-off price moves, as was the case in the second half of 2024 in North America, the results did not show a significant sequential improvement': sales and margins stood at 74 billion and 0.7% respectively, compared to 72 billion and 0.3% in the second half of 2024. In light of the lower results in H1 2025, Intermonte explains, the impact on full-year earnings per share estimates is estimated at around -30%.

Added to this is the decline in consolidated Stellantis deliveries in the second quarter globally, estimated at 1.4 million units. The decrease is 6% year-on-year, 'due to production pauses related to North American tariffs impositions at the beginning of the quarter, as well as a reduced, but negative impact of product transition in enlarged Europe, where several major models are either being accelerated after recent launches, or awaiting production start-ups scheduled for the second half of 2025'.