Stellantis (STLAM IM/STLAP FP) to incur a charge of EUR 22.2bln, in relation to a business reset which aims to support profitable growth
Stellantis is incurring a substantial charge of EUR 22.2 billion as part of a business reset aimed at fostering profitable growth, which indicates significant operational challenges and a shift in strategy following misaligned market expectations.
Iraq's SOMO Director says they are planning to boost oil export from the south by 120k BPD
Additional European Equity News
Stellantis (STLAM IM/STLAP FP) to incur a charge of EUR 22.2bln, in relation to a business reset which aims to support profitable growth
ECB's Kazaks says we should not exaggerate single data points
Swedish Inflation Rate YoY Prel (Jan) Y/Y 0.4% vs. Exp. 0.6% (Prev. 0.3%)
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Business Reset:
- Board authorised the issuance of up to EUR 5bln non-convertible subordinated perputatial hyrbrid bond.
- The Company will not pay a dividend in 2026.
2026 Financial Guidance:
Guides H2:
- Net Income -21bln to -19bln.
- Revenue 78-80bln.
CEO:
- 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.
- We look forward to sharing the full details of our new strategy at our Investor Day on May 21.
Results:
- North America Shipments Up 43%, with South America, Middle East & Africa and China and India & Asia Pacific Also Reporting Growth
The decision to suspend dividends in 2026 and a projected net income loss of up to EUR 21 billion underscores considerable pressure on their financial outlook. This reset could influence investor sentiment and trading patterns in the automotive sector, particularly within European equities where Stellantis is a key player.
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