After a disastrous 2024 that saw its profits crater by 70 percent, Stellantis is forecasting limited profitability for 2025, as the group tries to revive sales and find a successor to former CEO Carlos Tavares.
The company forecasts a “mid-single-digit” adjusted operating margin for 2025, with light revenue growth and “positive” cash flow. However, it acknowledges that market uncertainty and the start of a gradual commercial recovery will make any improvement slow.
“We are focused on gaining market share and improving financial performance as the year progresses.”
- John Elkann, President of Stellantis
Falling profits
In 2024, Stellantis recorded an operating margin of 5.5 percent, well below the 12.8 percent of 2023. Net income plunged by 70 percent to 5.5 billion euros, compared with 18.6 billion in 2023.
Revenues fell by 17 percent to 157 billion euros, due to a 12-percent drop in worldwide deliveries. The company cites “temporary holes” in its range and the end of its inventory reduction initiatives.
Free cash flow is of particular concern: negative 6 billion euros, compared with positive 12.9 billion in 2023.
A difficult market in North America
Stellantis has made progress in reducing inventories, particularly in the United States, where dealers were complaining about excessively high prices on Jeep and Ram models. Inventories have been reduced by 18 percent in one year, and US dealer stocks are down 20 percent.
However, demand remains weak in Europe, and the threat of increased tariffs in the U.S. weighs on the automaker’s future.
A CEO still to be picked, changes underway
While Stellantis has yet to name a successor to Carlos Tavares, the company has reshuffled its management team and announced investments in the U.S. The aim is to boost sales with new models, including a locally produced mid-size pickup.
The Group has been losing market share in North America, with many blaming an unattractive product range and strained relations with dealers and suppliers. The result: an 80-percent drop in operating profit in the region.
An alarming situation in Europe
In Europe, Stellantis saw the sharpest decline among the major manufacturers. Sales were down 7.3 percent in 2024, and plunged 16 percent in January 2025. Operating profit was down 63 percent in 2024
John Elkann wants to stabilize the company before appointing a new CEO, and has already decentralized decision-making, a break with Tavares' centralized management.
Towards greater financial transparency
In 2026, Stellantis will switch to quarterly financial reporting to meet investor expectations for greater clarity on the Group's strategy, objectives and performance.
Until now, Stellantis has followed the French model of publishing results every six months. This change is aimed at improving comparability with the competition and increasing transparency.
The future of Stellantis will depend on its ability to turn around sales, adjust prices and reassure investors.
