Automaker Stellantis NV has swung back to profit, though the recovery is largely driven by its North American operations, while its position in the Chinese market remains under adjustment.
According to financial results released on July 30, Stellantis NV reported second-quarter net revenues of €43.5 billion, a 13% increase from €38.4 billion in the same period of 2025. Net profit reached €300 million, reversing a net loss of €1.869 billion from the prior year.
Adjusted operating income came in at €773 million, up 263% from €213 million a year earlier, but fell short of the consensus analyst estimate of €914 million. The adjusted operating margin stood at 1.8%, improving by 120 basis points year-over-year.
For the first half of the year, cumulative net revenues totaled €81.6 billion, up 10% year-over-year. Net profit reached €670 million, compared to a net loss of €2.256 billion in the same period last year. The group reaffirmed its full-year financial guidance for 2026, projecting mid-single-digit percentage growth in net revenues and a low-single-digit adjusted operating margin.
On a regional basis, the second-quarter performance improvement was uneven.
North American net revenues rose 32%, with the region's adjusted operating profit turning from a €440 million loss last year to a €284 million gain. In the U.S. retail market, sales of the Jeep Grand Wagoneer surged 43%, while Ram 1500 deliveries increased 9%.
South American net revenues grew 6%. The enlarged European market was essentially flat but remained the only region with a negative adjusted operating margin of -0.6%. The Middle East, Africa, and Asia-Pacific region saw a slight decline.
On the cash flow front, second-quarter industrial free cash flow reached €1.0 billion, a significant improvement from €31 million in the same period last year. As of the end of the quarter, industrial available liquidity stood at €44.1 billion. Global shipments in the second quarter were approximately 1.6 million vehicles, up 10% year-over-year, driven primarily by North America and Europe.
The recovery in North America has not altered Stellantis NV's predicament in the Chinese market.
In 2025, Stellantis NV sold only 43,000 vehicles in China, capturing a market share of 0.2%. The joint venture Dongfeng Peugeot Citroën sold 51,500 vehicles annually, a drop of over 90% from its 2015 peak of 710,000 units. The GAC Fiat Chrysler joint venture has entered bankruptcy liquidation, and the influence of brands like Jeep, Peugeot, and Citroën in the Chinese market has significantly declined.
Stellantis NV has begun attempting to change this situation. Since Antonio Filosa took over as group CEO in June 2025, he and senior executives have visited China 10 times within 11 months.
In May 2026, the group unveiled its five-year strategic plan, "FaSTLAne 2030," which aims to invest €60 billion by 2030 to launch over 60 new models and 50 major facelifts. For the first time, the strategy listed "partnerships" as a strategic pillar, with a particular focus on Chinese companies.
On the cooperation front, Stellantis NV signed a strategic cooperation agreement worth over 8 billion yuan with Dongfeng Motor Group. Starting in 2027, the Dongfeng Peugeot Citroën Wuhan plant will produce two Peugeot new energy vehicles and two Jeep new energy off-road vehicles for the global market.
The joint venture with Leapmotor posted operating revenue of €809 million in its first full year of operation in 2025, a 462% increase, with a net profit of €44 million. Leapmotor sold over 30,000 vehicles in Europe in 2025.
Returning to profitability does not mean the foundation has been fully repaired. Stellantis NV still faces uncertainties including tariffs, losses in Europe, and the need to rebuild its position in the Chinese market.
Adjusted operating income still fell short of market expectations, with analysts having forecast €914 million. The group expects the net headwind from tariffs in full-year 2026 to be between €1.0 billion and €1.2 billion. The enlarged European market remains in an operating loss position.
In the Chinese market, the effects of the new strategy will take time to materialize. According to the plan, new energy vehicles co-developed with Dongfeng will not enter production until 2027, while mass production with Leapmotor at the Spanish plant is also still in the pipeline. Whether these moves can help Stellantis NV reverse its decline in the Chinese market remains to be seen.
Comments