Stellantis posts 20 billion euro loss in second half after huge EV writedown

MILAN, Feb 26 (Reuters) – Stellantis on Thursday reported a net loss of 20.1 billion euros ($23.8 billion) for the second half of 2025, after flagging earlier this month 22.2 billion euros of charges in the period as it scaled back its electric-vehicle ambitions.

The huge loss underscores how carmakers globally are taking a hit from a slower-than-expected and more complex shift from petrol engine cars to electrified vehicles, as both the United States and Europe water down EV targets.

Stellantis’ adjusted operating income (AOI) was negative for 1.38 billion euros in the second half of last year. Both the net loss and the AOI were within the preliminary estimate ranges that the company had provided earlier this month.

The Jeep-to-Peugeot maker, whose July-December net revenues rose 10% year-on-year, said it had booked a total of 25.4 billion euros in writedowns last year.

This led to 2025 results “reflecting the cost of over-estimating the pace of the energy transition,” Chief Executive Antonio Filosa said in a statement.

Since it announced multi-billion EV-related impairments on February 6, Stellantis’ Milan-listed shares have lost about 20% of their value.

So far this year the shares have lost over 30%, hitting an all-time low since the automaker was created in January 2021 through the merger of Fiat Chrysler and Peugeot maker PSA of 5.73 euros per share on February 6.

The writedowns – also caused by vehicle quality problems that Filosa attributed to cost-cutting under former boss Carlos Tavares – include about 6.5 billion euros in cash payments, expected to be spread across four years from 2026.

The company on Thursday reiterated its 2026 forecasts, including a mid-single-digit percentage increase in net revenues and a low-singe-digit adjusted operating margin. It sees industrial free cash flows returning positive only in 2027.

Stellantis confirmed it would not pay a dividend this year.

The group – which traditionally sees the North American market, and the U.S. in particular, as its profits powerhouse – said it forecasted costs of 1.6 billion euros this year due to U.S. tariffs, up from 1.2 billion euros in 2025.