The automaker posted net profit of €293 million versus a year-ago loss, but adjusted operating income fell short of analyst estimates
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Stellantis $STLA reported second-quarter net profit of €293 million on Thursday, swinging from a net loss of €1.87 billion in the same period a year earlier, as rising North American sales bolstered the company's turnaround effort. Stellantis stock fell more than 8% before paring losses to around 5%.
Adjusted operating income surged to €773 million, nearly four times the €213 million recorded in the same quarter last year, while net revenues climbed 13% to €43.5 billion. That revenue gain was driven by a 32% increase in North America and a 6% rise in South America, while Enlarged Europe was flat and the Middle East & Africa and Asia Pacific regions declined.
The adjusted operating income result fell short of an analyst consensus estimate of €914 million, according to CNBC. The adjusted operating income margin came in at 1.8%, up 120 basis points year-over-year. Citi analysts flagged the margin as "very low" and, in a note to clients, cautioned that the market would probably want to see sustained operational improvement before growing more bullish on the stock.
Industrial free cash flows came in at €1.0 billion for the quarter, representing a €1.0 billion swing from the second quarter of 2025. The result cleared Citi's €600 million projection by a comfortable margin, according to CNBC.
North America was the standout region. Sales rose 6% year-over-year, the fourth consecutive quarter of growth, with U.S. sales up 6% and Mexico posting its strongest second quarter on record. North America's adjusted operating income swung to €284 million from a loss of €440 million a year earlier. Enlarged Europe remained a drag, posting an adjusted operating income loss of €94 million, though that was an improvement from a loss of €359 million in the prior-year period.
"The second quarter was marked by continued progress, led by North America and supported by important contributions from all other regions," CEO Antonio Filosa said in a statement. "With implementation of our FaSTLAne 2030 strategy well underway and this year's exciting new product launches on time and on track, we remain confident of delivering our 2026 financial guidance."
Stellantis reaffirmed its full-year 2026 guidance, targeting mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. The company estimated net tariff headwinds of €1.0 billion to €1.2 billion for the year, noting that first-half net tariff costs were €0.3 billion after a €0.4 billion refund related to IEEPA tariffs. Second-half performance is expected to be weighted toward the fourth quarter, following a third-quarter summer production shutdown.
Stellantis unveiled its FaSTLAne 2030 strategic plan in May, calling for €60 billion in investment through 2030 and concentrating roughly 70% of spending on four brands: Jeep, Ram, Peugeot, and Fiat. The company aims to return to positive industrial free cash flow in 2027. Stellantis returned to quarterly profitability in the first quarter of 2026 for the first time in over a year, though its stock also fell that day despite the beat.
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