Cars

Stellantis returns to profit, buoyed by North America

Revenue rises, adjusted operating profit below estimates, guidance confirmed – Trading opens on a negative note on the stock market

by Matteo Meneghello

30 July 2026

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Stellantis returned to profit in the second quarter, thanks mainly to higher volumes and the boost from growing demand in North America, with total revenue of 43.5 billion, but failed to set a price at the market open and subsequently opened down by around 5%. Net profit for the period rose to 293 million, compared with a loss of 1.87 billion the previous year, with adjusted operating profit slightly below analysts’ estimates due to high raw material costs and weak prices in Europe, where competition from Chinese rivals is intensifying. CEO Antonio Filosa plans to invest 60 billion euros by 2030 in dozens of new models, prioritising the Jeep, Ram (for which new appointments to senior management were officially announced in recent days) and Peugeot and Fiat, as set out in the new business plan presented a few weeks ago, whilst simultaneously improving quality. The group is also, as previously announced, banking on partnerships with the Chinese companies Zhejiang Leapmotor Technology and Dongfeng Motor to help utilise the production capacity of some of its underutilised plants in Europe.

In Europe, where the group also benefits from a sales partnership with the Chinese firm Leapmotor, deliveries rose by 5 per cent thanks to robust demand for smaller cars, including the Fiat 500 and the Citroën C3 Aircross. Stellantis’ operating margin improved but remained below zero; the company cited downward pressure on net prices and raw material inflation

Filosa is tackling these challenges by seeking to streamline the company. The group is aiming for annual savings of €6 billion by 2028 compared with last year’s level. Earlier this week, Stellantis agreed to sell its Free2move car-sharing business to a German private equity firm, as part of its efforts to divest unprofitable businesses and refocus its investments.

The guidance for 2026, which had been provided alongside the first-quarter results, has also been confirmed. As stated in a press release, Stellantis expects a mid-single-digit increase in net turnover, a low-single-digit increase in adjusted operating income (Aoi), and an improvement in industrial free cash flow generation compared with the previous year, including €2 billion in payments related to charges recorded in the second half of 2025. The company also expects positive industrial free cash flow in 2027.

For Stellantis, the second quarter “was characterised by steady progress, driven by North America and supported by significant contributions from all other regions”. Filosa made this comment whilst discussing the results. As mentioned, the company reported a profit for both the quarter and the half-year, compared with a loss in the same period last year, and saw revenue rise by 13 per cent in the quarter and 10 per cent in the half-year. “We have improved our performance across all our key financial indicators, with net revenue, adjusted operating profit and industrial cash flow all showing significant increases,” said Filosa. With the FastLane 2030 strategic plan, presented on 21 May, “now fully underway, we remain confident in our financial guidance for 2026”.

More specifically, Stellantis’ sales in the Greater Europe region rose by 3 per cent in the second quarter compared with the same period in 2025, and by 7 per cent when Leapmotor is included, driven mainly by Smart Car. The EU30 market share stood at 16 per cent, down 80 basis points year-on-year, or 16.8 per cent including Leapmotor, down 10 basis points. Sales growth was supported by a diversified range of BEV, hybrid and internal combustion engine (ICE) powertrains, as well as the launch of the Fiat Grande Panda ICE on the Smart Car platform. In North America, sales rose by 6% compared with the second quarter of 2025, marking the fourth consecutive quarter of year-on-year growth, with a 6% increase in the United States, a 1 per cent decrease in Canada and a 17 per cent increase in Mexico (a 19 per cent increase including Leapmotor). Stellantis outperformed the US market, which recorded a 0.3 per cent decline in the second quarter of 2026. In South America, sales fell by 2% compared with the second quarter of 2025, or by 1% including Leapmotor. The Middle East and Africa region held up well in the second quarter of 2026 despite a challenging market environment: whilst sales fell by 6 per cent, market share increased by 20 basis points compared with the previous year, against a contraction of around 8 per cent in the regional market. In the Asia-Pacific region, deliveries in June 2026 reached their highest level in the last six months. Sales fell by 29 per cent compared with the second quarter of 2025, or by 22 per cent when including Leapmotor.

Stellantis, which unveiled its FastLane 2030 plan on 21 May, highlighted that, with the implementation of the plan, the net impact of tariffs is now estimated at between 1 and 1.2 billion euros, and that in the first half of 2026, net costs related to tariffs amounted to €0.3 billion, including €0.4 billion in tariff refunds under the International Emergency Economic Powers Act. As set out in the note accompanying the second-quarter and first-half financial results, this figure includes approximately €2 billion in cash outflows relating to charges recognised in the second half of 2025, of which €0.9 billion had already been paid in the first half of 2026. Capital expenditure (CapEx) and Research and Development (R&D) expenditure for the full financial year are estimated at between 6.5% and 7% of net revenue, in line with the investment plan set out for this year. Stellantis has reported that ‘performance in the second half of 2026 is expected to be more concentrated in the fourth quarter, following the summer production break in the third quarter and the continued improvement in operational performance’.