Stellantis Posts €22.3 Billion Loss in 2025, Overhauls Electrification Strategy

Stellantis released its 2025 financial results on February 26, reporting a full-year net loss of €22.3 billion and an operating loss of €842 million—the company’s first annual loss since its formation in 2021. The second half alone accounted for a net loss of €20.1 billion, primarily due to overly optimistic assumptions about electric vehicle (EV) demand, which triggered massive asset impairments. New CEO Antonio Filosa is significantly scaling back his predecessor’s aggressive electrification strategy, canceling or delaying several EV models—including the Ram 1500 electric pickup—and streamlining the EV supply chain. The company expects to incur approximately €6.5 billion in related cash outflows over four years starting in 2026. Although losses widened in Europe, they narrowed in North America. Revenue rose 10% year-over-year in the second half, with deliveries increasing by 11%. Stellantis forecasts mid-single-digit revenue growth in 2026 and a return of its operating margin to the low single digits. The company will unveil its new strategic plan on May 21. This shift reflects a broader industry trend of automakers pulling back on EV investments, with cumulative impairments across the sector approaching $50 billion.