Consolidation Among Automakers Is Increasingly Likely: The Stellantis 'Bull' Case
European carmakers face a perfect storm: stagnant sales, fierce Chinese competition, lagging EV tech, and barriers to export to U.S. and China. The industry is in need of consolidation. Stellantis N.V. continues to struggle with declining shipments, negative FCF, and U.S. tariff exposure under new CEO Antonio Filosa, despite guiding for a 2026 turnaround. However, I think Stellantis could benefit from industry consolidation due to its shareholder base, cash reserves, and potential to spin off or sell its vast portfolio of brands.
Stellantis: Valuation Makes No Sense
STLA is deeply undervalued, trading at a 68% discount to book and under 4x earnings, despite strong brands and a solid balance sheet. Recent results were rough, but sequential trends are improving with new product launches and recovering volumes, signaling a turnaround is underway. Tariffs are a real headwind, but their impact is overstated; STLA is better positioned than peers and actively adapting its operations.
Stellantis: Recovery Deferred, Near-Term Challenges Widen
Stellantis' H1 2025 results disappointed, with sales down 13% and negative €3 billion in free cash flow. Key positives like inventory management and cash generation have reversed with guidance reinstated, but at the low end of expectations. We cut our 2025 forecasts, see no dividend in 2026, and move to a Neutral rating.
Stellantis N.V. (STLA) Q2 2025 Earnings Call Transcript
Stellantis N.V. (NYSE:STLA ) Q2 2025 Earnings Conference Call July 29, 2025 8:00 AM ET Company Participants Antonio Filosa - CEO, COO of North America American brands & Executive Director Douglas R.
Stellantis is forecasting $1.7 billion hit from Trump's tariffs
Stellantis has forecast that U.S. tariffs would cost it 1.5 billion euros ($1.7 billion) this year, five times the hit taken in the first six months of the year when the carmaker tallied losses of 2.3 billion euros ($2.65 billion).The maker of Jeep, Chrysler, Fiat, and Peugeot cars said Tuesday that net profits plummeted from 5.6 billion euros ($6.5 billion) in the same period last year as it burned 3.3 billion euros ($3.8 billion) in cash for the cancellation of a hydrogen fuel cell project, changes in the fine regime for U.S. carbon emission regulations, and write-downs on platform investments.U.S. President Donald Trump's tariffs cost the company 300 million euros ($346 million) in the first six months of the year, Stellantis said. During the period, U.S. shipments were down by nearly a quarter as the carmaker reduced the importation vehicles produced abroad.Stellantis said it expected net revenues to increase over the next six months compared with the first half of the year, when they dropped 13% to 74.3 billion euros ($85.7 billion).
Jeep Maker Stellantis Reinstates Outlook, Sees $1.73B Tariff Impact
Stellantis (STLA) reinstated its full-year outlook Tuesday after suspending it in April due to uncertainty around tariffs.
Jeep maker Stellantis reinstates financial guidance but flags 'tough decisions' ahead
Auto giant Stellantis has touted a gradual recovery over the coming months.
Stellantis expects gradual recovery in H2 and more 'tough decisions'
Stellantis guided on Tuesday for increased net revenues and a low-single digit operating income margin in the second half despite increasing headwinds, as the automaker aims for a gradual recovery after a tough first half.
Stellantis (STLA) Stock Sinks As Market Gains: Here's Why
In the most recent trading session, Stellantis (STLA) closed at $9.58, indicating a -7.35% shift from the previous trading day.
Stellantis Swings to First-Half Loss as Tariffs Bite Jeep Maker
Stellantis (STLA) said Monday that it swung to a net loss in the first half of the year, as the Big Three automaker was hit by tariffs as well as restructuring costs and a sales slump.
Stellantis breaks with tradition, revealing early loss as restructuring weighs
Stellantis NV (NYSE:STLA, EPA:STLA) has taken the unusual step of disclosing preliminary first-half results ahead of schedule, revealing a net loss of €2.3 billion after major restructuring and impairment charges. The Fiat and Chrysler car maker booked €3.6 billion in costs tied to programme cancellations, platform changes and the first impact of new US tariffs.
Stellantis warns of $2.7 billion loss on writedowns, tariff impact
Stellantis on Monday guided for a surprise loss in the first half of the year, as the Jeep and Ram pickup truck maker flagged a big charge ahead of results next week.
