Stellantis second quarter profit miss sending shares lower despite revenue growth
Stellantis NV (NYSE:STLA, EPA:STLA) reported its second quarter results on Thursday, with revenue growth and improved operating performance offset by a weaker-than-expected profit result.
The automaker reported net profit of €293 million ($336 million) for the quarter, below expectations of €464 million.
Adjusted operating income (EBIT) came in at €773 million, missing analyst estimates of roughly €903 million to €914 million.
Revenue increased 13% year-over-year to €43.5 billion, ahead of expectations of €42.83 billion, supported by higher volumes and growth in North America.
The region's revenue increased 32% from a year earlier, while South America revenue rose 6%. Enlarged Europe was flat, while the Middle East and Africa and Asia Pacific regions declined slightly.
Adjusted operating income improved from €213 million in the prior-year period to €773 million, with the adjusted operating margin rising to 1.8% from 0.6%. Stellantis reported positive adjusted operating income margins across all regions except Enlarged Europe, where the margin was negative 0.6%.
Industrial free cash flow reached €1 billion in the quarter, an improvement of €1 billion compared with the same period last year, reflecting improved operating performance. Industrial available liquidity stood at €44.1 billion at the end of the quarter.
CEO Antonio Filosa highlighted progress across the company's financial metrics and the rollout of its FaSTLAne 2030 strategy. "The second quarter was marked by continued progress, led by North America and supported by important contributions from all other regions," he wrote.
Stellantis reaffirmed its 2026 financial guidance, including expectations for mid-single-digit revenue growth, a low-single-digit adjusted operating income margin and year-over-year improvement in industrial free cash flow.
The company estimated a net tariff headwind of €1 billion to €1.2 billion for the year, with first-half net tariff costs of €300 million, including a €400 million refund related to the International Emergency Economic Powers Act.
Stellantis also expects second-half performance to be weighted toward the fourth quarter, following planned third-quarter summer production shutdowns and continued operational improvements.
The company's US-listed shares fell 3% following the report, trading hands at about $6.