Stellantis CEO Antonio Filosa emphasized that the company’s significant strategic transformation would require time to yield results after the global automaker reported second-quarter results below expectations, leading to a drop in its shares. In a bid to regain lost market share in the U.S., Stellantis unveiled a $70 billion turnaround plan earlier this year, aiming to introduce 60 new models by 2030. Filosa outlined three key priorities during a call with analysts: expanding market reach, cutting industrial expenses, and enhancing product quality, although progress in these areas has been gradual.
Sales in North America for Stellantis saw a 6% increase, driven by a notable 11% surge in sales of high-margin Ram pickup trucks and Jeep models targeted by Filosa to boost the company’s U.S. market share. Notably, the Chrysler Pacifica minivan, manufactured in Windsor, experienced a 7% sales hike year-over-year. On the other hand, revenue in Europe remained flat as Stellantis had to lower prices to fend off mounting competition from Chinese automotive manufacturers.
To combat the growing threat from Chinese rivals like BYD and Chery, Filosa disclosed plans to rely on Stellantis’ Chinese joint-venture partner, Leapmotor, whose sales skyrocketed almost sixfold in Europe in the first half of 2026. Additionally, Stellantis is in the process of developing new vehicle platforms for the European market that will match the competitiveness level seen in China.
Despite an increase in second-quarter adjusted earnings before interest and tax to $884 million US, primarily driven by strong revenue in North America, the figure fell short of analysts’ expectations. The company’s Milan-listed shares closed down by 4.31%. Citi analysts highlighted that the adjusted operating income margin remained low at 1.8%, attributing this to price reductions in Europe, higher administrative and R&D costs, adverse currency fluctuations, and tariffs.
Since assuming office in June last year, Filosa has concentrated on reviving sales volumes and recapturing lost market share after a prolonged downturn, with the belief that rejuvenating the core business will set the stage for a broader recovery. Stellantis has also scaled back its electric vehicle ambitions. The company’s shares hit a record low this month and have declined by approximately 40% since Filosa took the helm as CEO.
The company’s revenue for the second quarter surged by 13% year-on-year, with a substantial 32% increase in North America driven by strong sales of models such as the Jeep Grand Wagoneer and Ram 1500 truck. Fabio Caldato, a fund manager at Stellantis investor AcomeA Sgr, noted that while the North American revenue performance was positive, it was propped up by dealers increasing inventory.
Stellantis maintained its full-year guidance, projecting mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is anticipated to materialize next year. The company also estimated U.S. tariff costs to range from $1.15 billion to $1.38 billion for the year.
