Stellantis Aims for Profitable Growth by 2025

Stellantis reported a net profit of €5.473 billion in 2024, marking a 70.5% decrease from the €18.596 billion recorded the previous year. Its net revenues rose to €156.9 billion, a 17% decline compared to the previous fiscal year.

"While 2024 was a year of stark contrasts for the company, with results falling short of our potential, we achieved significant strategic milestones. Notably, we commenced the launch of new multi-energy platforms and products, which will continue into 2025, began battery production for electric vehicles through our joint ventures, and launched the Leapmotor International partnership," stated interim Chairman and CEO John Elkann.

This year, Stellantis plans to launch 10 new products, including the recent unveiling of the STLA AutoDrive 1.0, the company's first internally developed automated driving system, alongside developments in artificial intelligence. However, the company anticipates a decline in profitability this year.

The outlook is unsettled due to a potential continued decline in demand, particularly in the electric vehicle market in Europe and North America, as well as the threat of tariffs on the United States' two main trading partners, Mexico and Canada, where the manufacturer has significant facilities that could be affected.

Specifically, despite expecting "positive" net revenue growth and "positive" industrial free cash flows, reflecting both the initial stage of commercial recovery and the industry's high uncertainties, Stellantis also forecasts an AOI margin of "mid-single digits" compared to the 5.5% achieved in 2024.

Stellantis plans to pay a dividend of €0.68 per ordinary share, pending shareholder approval.

The group has been impacted in its main markets, especially in the United States, where low demand and issues with its dealership network led to a market share loss, reaching 7.8% (-1.6 p.p.), and its sales in the region fell by 14.3% to 1.52 million units. Consequently, its AOI in the region dropped by 80% to €2.66 billion.

In its Enlarged Europe market, the previous year also saw a 62% reduction in adjusted operating profit to €2.419 billion, due to a 5% decrease in sales (2.57 million units) and a market share drop to 16.4% (-1.1 p.p.).

Sales in South America grew by 4.2% to 916,000 units, achieving an AOI of €2.272 billion (-4% annually) and a market share of 22.9% (-0.6 p.p.), but decreased in its Middle East and Africa market by 12.3% to 538,000 units, with a market share of 12.4% (-2.4 p.p.) and an adjusted operating profit of €1.901 billion (-24%).