Stellantis reported an adjusted operating profit of €9.6 billion (approximately $11.9 billion) for the first quarter, significantly surpassing analyst expectations. Benefiting from a recovery in North American sales, the company has begun disclosing quarterly earnings data for the first time. Citigroup analysts commented: while the surface numbers in the company's report are impressive, the underlying structure appears messy.
Stellantis, the parent company of Jeep, released its first-quarter results on Thursday. Boosted by strong performance in its core North American market, its adjusted operating profit nearly tripled year-over-year, yet the company's stock price experienced a sharp decline. The multinational automotive group, whose portfolio includes brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, posted a first-quarter adjusted operating profit of €9.6 billion (approximately $11.2 billion). This result substantially outperformed the consensus analyst forecast of €5.68 billion, as polled by Reuters, and represents a 194% increase compared to the adjusted operating profit of €3.27 billion reported in the same period last year. The company's shares listed in Milan plummeted by as much as 10% in early trading before paring losses, with the latest decline standing at approximately 7%. This marks the first time Stellantis has published quarterly profit figures, having previously reported financial results only on a semi-annual basis. The financial report showed first-quarter net revenue of €381 billion, a 6% increase compared to the same period in 2025. The company reported a net profit of €3.77 billion for the quarter, a significant turnaround from a net loss of €3.87 billion in the first quarter of 2025. Stellantis CEO Antonio Filosa stated in a release: "With our move to quarterly reporting, our first-quarter 2026 results demonstrate the initial success of our strategy to return to sustainable, profitable growth." He added: "New models launched in 2025 have been well-received by the market, and we are confident that the 10 new vehicles planned for launch in 2026 will continue this growth momentum."
Analyst Review: Overall Performance Shows "Chaotic Undercurrents" Citigroup analysts indicated that while Stellantis's overall revenue figures for the quarter exceeded expectations, the internal fundamentals were notably messy, as anticipated by the market. Citigroup analyst Harald Hendricks noted in a research report: "On the positive side, performance in both the US and European markets showed positive growth, while the Middle East and South America regions continued to drive the adjusted operating profit higher." However, he also pointed out that significant variables related to provisions and tariff factors raise questions about the sustainability of regional operating profits. Furthermore, the company's free cash flow remains negative. Hendricks believes: "The market will engage in intense debate regarding the quality of these earnings, but significant changes to the consensus analyst profit estimates are unlikely."
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