Stellantis N.V. (STLA) stock took a beating on Friday after the automaker dropped a bombshell: it's heading for a full-year net loss and embarking on a massive business reset that includes roughly 22 billion euros (about $26 billion) in charges. Think of it as corporate spring cleaning, except instead of old furniture, they're tossing out underperforming products and restructuring costs as they prepare to unveil a new strategic plan.
Oh, and Stellantis also announced it sold a 49% stake in NextStar Energy to LG Energy Solution, because why not add a joint venture reshuffling to an already chaotic Friday?
The Numbers Tell Two Stories
Here's where things get interesting. Stellantis posted mixed preliminary results for the fourth quarter of fiscal 2025, and "mixed" is doing some heavy lifting here.
Fourth-quarter shipments came in at around 1.5 million units, up 9% year-over-year. That sounds pretty good until you dig into the regional breakdown and realize not all markets are created equal.
North America was the star of the show, with shipments rocketing up 43% year-over-year to roughly 422,000 units. Normalized inventory levels and strong demand helped, but the real kicker was orders surging about 150% year-over-year, driven by new and updated Jeep, Ram, and Dodge models. Apparently, Americans still love their trucks and SUVs.
Other regions showed more modest gains. South America shipments climbed 7% year-over-year, the Middle East and Africa ticked up 2%, and China, India, and Asia Pacific jumped 20%. Collectively, these "other regions" saw shipments increase 6% year-over-year.
Then there's Europe, which is having a rough time. Enlarged Europe shipments dropped 4% year-over-year to approximately 667,000 units, with declines across both passenger car and light commercial vehicle segments. Not exactly the momentum you want in one of your core markets.
The Big Reset
Stellantis completed a comprehensive review of its strategy and cost structure as part of this broader business reset, ahead of unveiling a new strategic plan in May. The company is betting that decisive action now will pay off later.
Some early signs suggest the turnaround efforts are working. In the second half of 2025, shipments reached 2.8 million units, up 11% year-over-year, marking a return to positive volume growth. The company also pointed to stronger customer and dealer orders and improvements in initial quality metrics.
But those gains came with a price tag. The business reset led to charges of approximately 22.2 billion euros in the second half of 2025, excluding adjusted operating income. About 6.5 billion euros of that will be cash outflows spread over the next four years, so this isn't a one-and-done situation.
What's Next for 2026
Stellantis projects improvements in net revenues, adjusted operating income margin, and industrial free cash flow in 2026, which is corporate speak for "things should get better."
The company expects an adjusted operating margin in the low single-digit percentages, and that includes an anticipated 1.6 billion euros in net tariff expenses (up from 1.2 billion euros in 2025). So tariffs are eating into margins, as they tend to do.
Given the net loss in 2025, Stellantis won't be paying a dividend in 2026. To shore up its balance sheet, the board approved issuing up to 5 billion euros in non-convertible, subordinated perpetual hybrid bonds. The company reported industrial liquidity of around 46 billion euros at year-end, so it's not exactly strapped for cash, but management clearly wants more cushion as it navigates this reset.
STLA Price Action: Stellantis shares plummeted 21.28% to $7.51 during premarket trading on Friday, hitting a new 52-week low.
