Stellantis announced in the second half of 2025 that it had a net loss of –20.1 billion Euros, which brought to an end a troubled fiscal year during which the company struggled with the electric vehicle initiative. Previously, in the month the company reported charges amounting to €22.3 billion, and these were later reported as a total write down of €25.4 emetic on the company amounts to around 27 billion in the current exchange rate. STLAM dropped 1.34%, trading at approximately 12.50 in the first part of Milan trading on 26 February 2026, as investors are concerned about the industry being electrified.
Roots Of The Crisis
The factual loss sustainability is suggested to be caused by aggressive investment in the energy transition. CEO Antonio Filosa described the state of affairs as the price of over-estimating the speed, with the huge impairments being associated with a scaled-back electric vehicle programme due to a drop in demand. Others are quality shortcomings as cost-cutting efforts were introduced in previous executive Carlos Tavares recalls and follow-up corrective actions that undermine the profitability, which, in general, compose a combination of negative factors.
Adjusted operating income had dropped to a loss of €1.38 billion -1.63 billion, despite net revenues rising by 10% year-on-year to a year-end level of undisclosed. The cash outflows of the period were to an amount of above 6.5 billion Euros, to be passed over to a period of four years commencing in 2026.
Numbers Tell the Story
The write-downs in 2025 full-year write-downs are €25.4billion Euros, which is significantly more than those reported by rivals in the electric vehicle market. Stellantis vehicle deliveries in the world dropped 12%, according to industry data published on 23 February 2026, and electric vehicle sales were down 25% by targets, due to trade tensions in China and Europe.
Ferdinand Dudenhoffer, an analyst at Center Automotive Management, noted that, however, Stellantis got the hybrid sweet spot incorrect; competitors like Toyota experienced a 20% sales growth. In the US, inventory levels rose 30% and required margins were forced down to negative.
Road Ahead
The company estimates a small recovery that will see the company realize mid-single-digit revenue growth and low single-digit adjusted margins by 2026, and negative free cash flow will only appear in 2027. Those who can pay no dividend this financial year are an indication of prudence, whereas Filosa returning to hybrids and strict cost control can serve the interests of the shareholders.
It is important to note that as of 23 February, the electric vehicle penetration in global vehicle sales is only at 30%; therefore, the impact of the write down is more likely to occur; however, there is a risk of execution in case of the increase in tariff pressure.
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