Stellantis has reported a global €22.3 billion (£19.4bn) net loss for 2025 after what it described as a decisive reset of its business, acknowledging it over-estimated the pace of the energy transition and is now rebalancing its EV strategy around customer demand.
The group’s €25.4bn (£22bn) in unusual charges, including €22.2 billion (£19.4bn) booked in the second half, are closely tied to resetting its product plan and EV supply chain to reflect slower than anticipated EV adoption and evolving regulatory frameworks.
Net revenues fell 2% year on year to €153.5bn (£134bn), reflecting foreign exchange headwinds and pricing declines in the first half.
Stellantis, which includes the brands Abarth, Alfa Romeo, Citroën, DS, Fiat, Jeep, Maserati, Peugeot and Vauxhall in the UK, moved from a €5.5bn (£4.8bn) profit in 2024 to that aforementioned £20bn net loss in 2025, while adjusted operating income swung from a positive €8.6bn (£7.5bn) to a loss of €842m (£734m), equating to a negative 0.5% margin. Industrial free cash flow was negative €4.5bn, although that represented an improvement on 2024.
Chief executive Antonio Filosa said: “Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies.
“In the second half of the year we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top line growth.
In 2026 our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth.”
The SMMT has called for an urgent review into the ZEV mandate to be brought forward to this year, while Stellantis hit pause on some production locations last year to help recalibrate for demand.
The group is signalling a broader powertrain approach for 2026.
In Enlarged Europe, new and upcoming models include the Citroën C5 Aircross BEV, the Jeep Compass BEV and the Fiat 500 Hybrid. In North America, the emphasis shifts back towards ICE and hybrid products, including re-entry into core segments with traditional powertrains.
For UK retailers operating under ZEV mandate constraints and managing EV stock risk, this recalibration may offer greater alignment with real-world consumer demand, particularly in the private retail market.
For 2026, Stellantis expects a “mid single digit” percentage increase in net revenues, a “low single digit” adjusted operating margin and improved industrial free cash flow, with positive free cash flow expected in 2027.