12:46 pm, February 26, 2026
Stellantis has slumped to its first annual loss since the company was created in 2021, after posting a huge €20.1bn (£17.5bn) net loss in the second half of 2025.
The automotive powerhouse – formed from the merger of Fiat Chrysler and PSA Group, and which represents the likes of Alfa Romeo, Citroen, Fiat, Peugeot and Vauxhall in the UK – confirmed it ended the year in the red, with a full-year net loss of €22.3bn (£19.4bn) and an operating loss of €842m.
In the last six months of 2025 alone, Stellantis recorded a €20.1bn (£17.5bn) net loss and a €1.4bn (£1.2bn) operating loss. Its adjusted operating margin for the second half stood at negative 1.7%.
The majority of the write-downs come from what the company now admits were overly optimistic forecasts for electric vehicle demand.
Billions of euros have been wiped off the value of cancelled or delayed EV programmes, including the Ram 1500 electric pick-up and planned Alfa Romeo EVs.
Around €6.5bn (£5.6bn) of the charges relate to cash payments that will be spread over four years from 2026.
It’s been reported that new CEO Antonio Filosa, who replaced Carlos Tavares, is now rolling back several elements of his predecessor’s aggressive electrification strategy.
In a statement accompanying the results, Filosa said: ‘Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies.
‘In the second half of the year we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top line growth.’
Those signs of progress were net revenue rising 10% year-on-year to €79.2bn (£69bn), shipments increased by 11%, and cash burn slowed compared with earlier in the year.
Looking ahead, the group is forecasting a return to growth in 2026, with net revenues expected to rise by mid-single digits and operating margins recovering to the low single digits.
According to Automotive News Europe, key priorities for the next full-year are closing ‘execution gaps’ and restoring profitable growth, while maintaining Stellantis’ structure as a global, multi-brand business.
Further details of the turnaround plan are set to be outlined at a capital markets day in the US on May 21.
