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EV write-downs will drive Stellantis to first annual loss since 2021 founding

Automotive News Europe — 2026-02-23

Automotive Industry

Stellantis is likely to record its first annual operating and net loss since its creation in 2021, following unexpectedly large write-downs of €22 billion linked to an overly ambitious electrification strategy under former CEO Carlos Tavares.

Stellantis will announce detailed full-year 2025 results on Feb. 26.

In the first half of 2025, Stellantis had an adjusted operating income of €500 million. In a preview Feb. 6 of full-year results, Stellantis said it expected a second-half adjusted operating loss of €1.2 to €1.5 billion, which would put it in the red for a full year for the first time.

“Adjusted income” refers to income/cost items that are considered rare or discrete events, including restructuring and other termination costs, impairments and asset write-offs.

Stellantis recorded a first-half net loss of €3.2 billion, including a write-off of €1.4 billion in investments due to platform impairments and program cancellations as part of €3.3 billion in pre-tax charges.

On Feb. 6, Stellantis said it was taking €22.2 billion in write-downs in the second half of 2025, and predicted a second-half net loss of €19 billion to €21 billion.

CEO Antonio Filosa, who was named to his post last June after a six-month search to replace Tavares, has embarked on an ambitious turnaround operation that includes billions in write-downs for canceled or delayed models such as the Ram 1500 Electric pickup truck and Alfa Romeo EVs.

Analysts have estimated that more than half of Stellantis’ 2025 write-downs are linked to electrification — the bulk of that amount attributable to a rollback in U.S. environmental standards and EV tax credits under the Trump administration.

Other automakers have found themselves writing off billions tied to investments in electrification. General Motors disclosed more than €7 billion in EV-related charges for 2025, with a lesser amount expected this year.

Ford said its pivot away from EVs such as the F-150 Lightning pickup will cost about $20.9 billion through 2027.
Honda on Feb. 10 said its EV write-offs tallied $1.7 billion in the nine months ended Dec. 31 and likely will grow by the end of its fiscal year in March.
And Porsche took €2.7 billion in write-offs in the third quarter of 2025 alone.

Filosa and CFO Joao Laranjo have characterized the write-offs as a “reset” aiming to align the company with actual consumer demand rather than regulatory targets.

“(We announced) a decisive reset to make customer preferences our only guide star for the future of our business,” Filosa told investors in a Feb. 6 call to announce the write-downs. Analysts said they were surprised by how large the write-downs were. The automaker’s stock fell by more than 25 percent on the news.

CEO Antonio Filosa says Stellantis will be profitable in 2026

Filosa said Feb. 6 that Stellantis will be profitable in 2026.

Ongoing U.S. tariff uncertainty — Stellantis projected €1.6 billion in tariff expenses this year compared with €1.2 billion in 2025 — and fierce competition from Chinese rivals in Europe led Stellantis to project a “low-single-digit” margin for this year.

Philippe Houchois, an analyst at Jefferies in Paris, predicts a 1.5 percent margin for 2026, equivalent to €2.4 billion, growing to 3.7 percent in 2027, equivalent to €6.1 billion.

Stephen Reitman, an analyst at Bernstein in London, predicts a faster recovery, with Stellantis’ operating income reaching €5 billion this year, for a 3.2 percent margin.

“Stellantis today feels reminiscent of Fiat (2005), PSA (2010) and Renault (2020-22), albeit with a stronger balance sheet and broader strategic options, despite a more challenging environment, including industry structural change and public policy risk,” Houchois said in a note to investors.

PSA Group and Fiat Chrysler Automobiles merged in 2021 to create Stellantis, which has been profitable on an annual basis since its formation and generated €54.3 billion in cumulative net profit until 2024. Profitability peaked in 2023 at €18.6 billion, almost 10 percent of net revenues of €189.5 billion.

Write-downs linked to EV program cancellations, warranty claims

The €22 billion in write-downs, which largely reflect past and continuing investments, include:

Scaling down the EV supply chain: Recognition that the transition to electric vehicles in North America and Europe has been significantly slower than what was anticipated by the “Dare Forward 2030” plan unveiled in March 2022. Filosa will announce a new strategic plan in May.
Product cancellations: High-profile casualties include the previously announced Ram 1500 BEV, as the company shifts focus to range-extender and full-hybrid powertrains.
Quality provisions: Revised estimates for warranty claims in North America and Europe and costs associated with residual values for discontinued models.

Stellantis will also report regional performance for the second half on Feb. 26.

In the first half, South America was the most profitable region, with €1.2 billion in adjusted operating income, ahead of Middle East and Africa, with €766 million.

Enlarged Europe, which includes Eurasia and other non-EU countries, was the biggest region by volume, at 1.3 million units, but barely at breakeven (€9 million).

Accelerated inventory clearing in North America slashed deliveries by 23 percent to 647,000 units and took to a €915 million adjusted operating loss from a €4.4 billion profit in the same period the year before.

‘Encouraging’ operational signals in fourth quarter of 2025

Stellantis has pointed to “encouraging” operational signals in the fourth quarter.

North America fourth-quarter shipments surged 43 percent to 422,000 as the company successfully cleared old stock and reintroduced the 5.7-liter Hemi V-8 to the Ram 1500 — a move widely seen as a correction to previous “EV-only” messaging.

Filosa said one of the largest volume improvements this year will come from the V-8 Hemi Ram pickup. “We are planning to produce and sell 100,000 units more in 2026 versus 2025. And this is obviously a big profit maker for us,” he said.

Filosa added that other crucial new products for the U.S. will need more time to gain traction.

Stellantis produces the Jeep Cherokee for North America in Mexico, and lead times mean the vehicle will reach U.S. retail stores only in March, Filosa said. The Dodge Charger Six-Pack with a gasoline engine, produced in Canada, will begin reaching dealer lots starting in the second half of February, he added.

The Europe region remains a challenge, with shipments down 4 percent in the fourth quarter to 667,000.

“We are seeing a lot of competitive pressure in Europe,” Laranjo told analysts on Feb. 6. He added that in the forecast for 2026, the company expects some headwinds on pricing in Europe.

However, the rollout of models underpinned by the Smart Car platform such as the Citroen C3 and Fiat Grande Panda has begun to gain traction in the budget segment, Stellantis said.

The automaker recorded an adjusted operating income of €2.4 billion in 2024 — but just €359 million in the second half. Margin was 4.1 percent, and only 1.2 percent in the second half of 2024.