The charges stem from a reset of Stellantis’ EV strategy after the company said it overestimated the pace of electric vehicle adoption.
- Stellantis warned of a full-year net loss in 2026 after booking about 22 billion euros in charges.
- The company also suspended its dividend and authorized up to 5 billion euros in hybrid bond issuance to protect its balance sheet.
- Despite the reset, Stellantis said early signs of recovery are emerging, with second-half shipments rising.
Stellantis N.V. signaled a tougher road ahead for 2026, warning of a full-year net loss as the Jeep-maker booked about 22 billion euros ($26 billion) in charges, suspended its dividend for 2026, and authorized the issuance of up to 5 billion euros in hybrid bonds to shore up its balance sheet.
The news sent STLA stock tumbling by more than 20% in Friday’s early premarket trading. If those losses hold in the regular session, it would mark the worst day on record for Stellantis on the NYSE. The stock is already down over 15% for the year.
STLA Suspends Dividend, Resets Strategy
The company said a strategic review of its operations resulted in 22.2 billion euros in charges in the second half of 2025, which were excluded from adjusted operating income. Of this, around 6.5 billion euros will be paid in cash over the next four years.
Given the net loss, Stellantis said it will not pay a dividend in 2026 and has approved the issuance of non-convertible subordinated perpetual hybrid bonds to help preserve financial flexibility. Available industrial liquidity stood at about 46 billion euros at year-end, at the upper end of its target range.
However, Stellantis said it expects net revenue, operating margins, and cash generation to improve in 2026, with performance strengthening from the first half into the second.
Stellantis Reassesses EV Push
Most of the write-downs reflect a reassessment of the pace of customer adoption of electric vehicles.
"The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team,” CEO Antonio Filosa said in a statement.
The largest portion, 14.7 billion euros, relates to changes in product plans and U.S. emissions compliance, including write-offs of canceled vehicles and impairments of EV platforms. Another 2.1 billion euros was tied to resizing the EV supply chain, while 5.4 billion euros reflected higher warranty provisions, restructuring costs, and other operational changes.
Earlier this year, the company confirmed it would end production of several plug-in hybrid Jeep and Chrysler models in North America starting with the 2026 model year, citing softer demand and the need to focus on more competitive electrified options.
Early Signs of Recovery Emerge
Despite the financial hit, Stellantis said early results from actions taken in 2025 are beginning to show. Second-half shipment volumes rose 11% year over year to 2.8 million vehicles, with North America up 39%, supported by improved inventory management and higher sales.
The company also reported rising order intake in Europe and improvements in initial vehicle quality metrics across major regions, including South America, the Middle East & Africa, and China and India, and the Asia Pacific region.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for Stellantis was ‘neutral’ amid ‘normal’ message volume.
One user said the company’s reset update was the “first real signal towards bankruptcy.”
Stellantis’ stock has declined 21% over the past 12 months.
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