Stellantis, the parent company of Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a steep 70% decline in the full year 2024 net profit, falling to 5.5 billion euros ($5.77 billion) from 18.6 billion euros ($19.5 billion) in 2023.
Despite the sharp drop, the company expressed confidence in a turnaround, projecting a return to revenue growth and positive cash flow in 2025.
The earnings miss caught analysts off guard as consensus estimates had predicted a net profit of 6.4 billion euros ($6.71 billion). Stellatnis attributed its weak performance to ongoing industry challenges, including declining demand for new cars, underperformance in North America, and struggles in the Chinese market.
The company is also in the midst of a leadership transition following the sudden departure of CEO Carlos Tavares late last year. Until a successor is named—expected in the first half of 2025—Chairman John Elkann is overseeing operations alongside an interim executive committee.
Key Financial Highlights:
- Net revenues fell 17% year-over-year to 156.9 billion euros ($164.46 billion).
- Adjusted operating income margin dropped to 5.5%, aligning with the lower end of Stellantis’ updated financial guidance.
Despite the financial setbacks, Elkann emphasized the company’s progress in key strategic areas. Stellantis has started rolling out new multi-energy platforms, ramped up EV battery production through joint ventures, and launched its Leapmotor International partnership. The company remains focused on increasing market share and improving financial performance throughout 2025.
Shares of Stellantis fell 4% on Wednesday following the earnings report. The automaker had previously issued a profit warning in September, citing weaker-than-expected sales across most regions. While the company is bracing for continued market uncertainty, it is banking on strategic investments and operational improvements to drive a recovery in the year ahead.
