Stellantis stock sinks despite posting first profit in over a year, beating estimates |
Stellantis stock sinks despite posting first profit in over a year, beating estimates
Adjusted operating income nearly tripled year-over-year, but analysts flagged earnings quality concerns and negative free cash flow
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Shares of Stellantis $STLA dropped by as much as 10% on Thursday, a day when the automaker also disclosed €960 million in adjusted operating income for the first quarter — marking its return to quarterly profitability for the first time in over a year, CNBC reported. By later in the session, losses had narrowed to roughly 6%.
That figure surpassed the analyst consensus estimate of €568 million and was nearly triple the €327 million posted in the same period a year earlier.
First-quarter net revenues came in at €38.1 billion, a 6% increase from the same period in 2025, Stellantis said. Net profit reached €377 million, compared with a net loss of €387 million in the first three months of 2025.
Until now, Stellantis had released profit data only twice a year, making this quarter's report the company's first foray into quarterly financial disclosure.
"As we initiate quarterly reporting, the first three months of 2026 reflect the early results of our actions to return Stellantis to sustainable, profitable growth," CEO Antonio Filosa said in a statement.
Citi analyst Harald Hendrikse acknowledged the beat but cautioned that the underlying numbers were "very messy," pointing to "significant moving parts" around provisions and tariffs that cloud the outlook for regional profitability. The company is still burning through cash, he noted, and predicted that questions surrounding earnings quality would keep consensus estimates largely unchanged, according to CNBC.
North America was a bright spot. U.S. sales rose 4%, while Canada and Mexico grew 15% and 19%, respectively. Ram brand sales in the U.S. climbed about 20% year-over-year, the brand's strongest first quarter since 2023, the company said. Stellantis said its U.S. market share rose to 7.9%, up 80 basis points year-over-year, even as the broader U.S. industry declined 6%.
In Europe, Stellantis said its EU30 market share reached 17.5%, up 20 basis points year-over-year. The company said it maintained leadership in the EU30 light commercial vehicle segment with a 28.7% market share.
Stellantis also said it raised €5 billion through hybrid perpetual notes during the quarter and confirmed its full-year 2026 financial guidance.
The company plans to concentrate future investment on four brands — Jeep, Ram, Peugeot, and Fiat — under a strategic plan Filosa is set to present at an investor day in Auburn Hills, Michigan, on May 21. The automaker formed in 2021 through the merger of Fiat Chrysler and PSA, the maker of Peugeot, and has since struggled to regain market share in the U.S. and Europe amid competition from Chinese automakers.
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