February 27, 2026 – Stellantis, the world’s fourth – largest automotive group, has reported its first annual loss since its merger, as revealed in its 2025 full – year financial results.
The financial report shows that the group suffered a net loss of 22.3 billion euros for the whole year. In the second half of the year alone, the net loss exceeded 20 billion euros. During the same period, it achieved a net revenue of 153.5 billion euros, a year – on – year decrease of 2%.
The main culprit behind this significant financial setback is the exorbitant cost associated with its strategic shift towards electrification. Stellantis incurred 25.4 billion euros in expenses related to in – depth strategic adjustments and changes in the regulatory environment. Just in the second half of 2025, business adjustments led to 22.2 billion euros in costs.
To break it down, 14.7 billion euros were spent on aligning with customer preferences and complying with new emission regulations in the United States. Another 2.1 billion euros went into adjusting the scale of the electric vehicle supply chain, and 5.4 billion euros were used for other operational adjustments within the company. It is expected that 6.5 billion euros in cash payments related to these expenses will be made over the next four years.
The group’s previous management overestimated the pace of the energy transition. The aggressive all – electric transformation plan launched by the former leadership was out of sync with the current market environment. Global electrification policies and market demands have undergone changes. The cancellation of electric vehicle subsidies and the adjustment of emission regulations in the United States, coupled with a decline in consumer expectations for all – electric models, have made the aggressive transformation untenable.
Moreover, the quality issues arising from the previous aggressive cost – cutting strategies have added to the financial pressure. Both its core markets in North America and Europe have reported losses in their main businesses.
In response, the new management of Stellantis has initiated a comprehensive business “reset”. It is scaling back the layout of all – electric models and re – increasing investment in fuel – powered and hybrid vehicles.
Regarding its profit – making plan, the company predicts that its net revenue will grow by a mid – single – digit percentage this year. The adjusted operating profit margin is expected to be in the low single – digit percentage range, and industrial free cash flow will also show year – on – year growth.
Currently, Stellantis is relying on its joint venture with Leapmotor to promote the localization of its electrification business. It also plans to unveil a new strategic plan in May 2026 in an effort to reverse its transformation difficulties.
