Stellantis CEO Antonio Filosa reaffirmed the automaker's 2026 financial guidance on Wednesday, a day after US shares closed at an all-time low. Filosa backed targets for a mid-single-digit rise in net revenues and a low-single-digit adjusted operating margin.
He also reconfirmed plans to turn industrial free cash flow positive by 2027 and to generate more than €3B in 2028. "We are completely committed and we are convinced that we will do that," Filosa said at an Automotive News event in Detroit.
The company's shares on track for their worst annual performance since Fiat Chrysler and PSA Groupe merged in January 2021.
The turnaround is expensive and unfinished
Stellantis is working through a turnaround plan worth roughly $70B after years of sales declines, particularly in North America. Filosa, who took the job in June 2025, is keeping all 14 automotive brands while leaning on regional nameplates such as Ram and Jeep in the US.
Its FaSTLAne 2030 plan, unveiled in May, commits €60B (about $68.1B) over five years, with Jeep, Ram, Peugeot, and Fiat taking 70% of brand and product investment. Industrial free cash flow last year was a deficit of €4.5B (about $5.1B).
Second-quarter numbers showed progress and limits
Stellantis swung to a net profit of €293M (about $333M) in the second quarter from a net loss of €1.87B (about $2.12B) a year earlier.
Net revenues rose 13% to €43.5B (about $49.4B), helped by a 32% jump in North America, and adjusted operating income hit €773M (about $878M).
The 1.8% adjusted operating margin still missed analyst expectations. The company also flagged net tariff headwinds of €1.0B to €1.2B (about $1.14B to $1.36B) for the full year.
RBC Capital Markets analyst Tom Narayan wrote this week that a break-up looks like a plausible longer-term scenario, despite management's public commitment to keeping the group intact.
Quality costs remain in the picture too. US safety regulators closed a probe into underhood fires in parked Jeeps after Chrysler recalled nearly 1.08M 2021-2025 Wranglers and Gladiators in June.
The investigation began in September 2024 and covered roughly 781.5K vehicles before the recall widened. NHTSA said it will keep monitoring field performance and could act again. For investors, the 2027 cash flow date is now the test that matters more than any quarterly beat.
