Stellantis Shares Hit On EUR 22.2 Bln EV Reset Charge, Dividend Suspended

(RTTNews) - Automajor Stellantis N.V. Friday announced that its it will record 22.2 billion euros in charges in the second half of fiscal 2025, largely reflecting the cost of over-estimating the pace of the energy transition, as it resets its electric vehicle or EV business to meet customer preferences and to support profitable growth.

In recognition of the 2025 net loss, the company will not pay a dividend in 2026. In addition, the Board authorized the issuance of up to 5 billion euros non-convertible subordinated perpetual hybrid bonds.

In pre-market activity, the shares were losing around 20.3 percent to trade at $7.60.

In Milan, the shares were plunging more than 19 percent, trading at 6.60 euros.

The company said it expects the latest actions to contribute to preserving a strong balance sheet and liquidity position, as it works to return the business to positive industrial free cash flow generation.

Stellantis said second-half net income and adjusted operating income or AOI will be negatively impacted by specific items, and AOI margin for the second half would be below the guided low-single digit range. However, improved net revenues are projected.

The firm also initiated fiscal 2026 guidance, projecting improvement in net revenues and AOI margin.

Stellantis said the development comes as it prepares to announce new strategic plan at its Investor Day on May 21.

Regarding the charges, the company said it expects cash payments of approximately 6.5 billion euros, which would be paid over the next four years.

In the charges, 14.7 billion euros is related to re-aligning product plans with customer preferences and new emission regulations in the U.S., largely reflecting significantly reduced expectations for BEV products.

Further, 2.1 billion euros is related to the resizing of the EV supply chain, and 5.4 billion euros is related to other changes in the company's operations.

Stellantis CEO Antonio Filosa said, "The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star. … We have gone deep into every corner of our business and are making the necessary changes, mobilizing all the passion and ingenuity we have within Stellantis. The positive customer reception to our product actions in 2025 resulted in increased orders and a return to top-line growth. In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth."

The full-year 2025 financial results will be released as scheduled on February 26.