Stellantis CEO Antonio Filosa has emphasized that the company’s significant strategic changes will require time to yield results, following the unveiling of weaker-than-anticipated second-quarter financials, which led to a decline in its stock value.
In a presentation made in May, Stellantis proposed a $70 billion turnaround initiative aimed at introducing 60 new models by 2030 and reclaiming lost high-margin U.S. market share from the tenure of former CEO Carlos Tavares, who exited in late 2024.
During a conference call with analysts on Thursday, Filosa outlined the company’s key focus areas as enhancing market presence, cutting industrial expenses, and enhancing product quality. Despite these efforts, progress in these areas has been gradual.
Addressing reporters, Filosa acknowledged the challenges, stating, “We need time… these are not challenges that you address overnight.” He reassured that Stellantis is on the right path, executing diligently and swiftly.
Stellantis experienced a 6% sales increase in North America, driven by an 11% boost in sales of high-margin Ram pickup trucks and Jeep models, which Filosa has prioritized to regain U.S. market share. Notably, sales of the Windsor-manufactured Chrysler Pacifica minivan surged by 7% year-over-year.
However, revenue in Europe remained stagnant as Stellantis was compelled to reduce prices to combat rising competition from Chinese automakers. Similarly, other European automakers like Volkswagen and BMW reported disappointing quarterly performances due to challenges from Chinese rivals, tariffs, and escalating expenses.
To counter the competition from Chinese automakers like BYD and Chery, Filosa mentioned that Stellantis will leverage its Chinese joint-venture partner Leapmotor, whose sales in Europe surged nearly sixfold in the first half of 2026. Additionally, Stellantis is developing new vehicle platforms for the European market aimed at achieving competitiveness comparable to Chinese standards.
In its second-quarter report, Stellantis disclosed adjusted earnings before interest and tax amounting to $884 million, primarily bolstered by robust revenue from North America, reflecting a significant increase from the previous year. However, these figures fell short of analysts’ expectations as per a Reuters poll, leading to a 4.31% decline in the company’s Milan-listed shares by the close of the trading day.
Citi analysts highlighted the company’s low adjusted operating income margin of 1.8%, attributing it to factors like price reductions in Europe, increased administrative and R&D costs, adverse currency fluctuations, and tariffs. Since assuming leadership in June last year, Filosa has concentrated on reviving sales volumes and reclaiming lost market share, banking on a business resurgence to pave the way for broader recovery.
Stellantis has also scaled back its electrification ambitions. The group’s shares hit a record low this month, marking a 40% decline since Filosa’s appointment as CEO.
The company’s revenue for the second quarter surged by 13% year-on-year, with North American sales increasing by 32%, driven by strong performance in 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 presented positive results, it was partly influenced by dealers increasing inventory.
Looking ahead, Stellantis reaffirmed its full-year projections, including mid-single-digit percentage revenue growth and a low-single-digit adjusted operating income margin. Positive industrial free cash flow is anticipated from next year onwards, with estimated U.S. tariff costs ranging between $1.15 billion and $1.38 billion for the current year.