Stellantis is set to record its first annual operating and net loss since its inception in 2021, driven by massive asset write-offs and a challenging pivot toward its global electrification strategy.
Automotive giant Stellantis is navigating a significant financial downturn, with the company likely to report a full-year net loss for 2025. This marks a stark reversal for the group, which has remained profitable since its creation through the merger of PSA Group and Fiat Chrysler Automobiles. The downturn is largely attributed to unexpectedly large write-downs totaling €22 billion ($26 billion), primarily linked to an ambitious electrification strategy initiated under former leadership.
The Breakdown of the Deficit
While Stellantis managed an adjusted operating income of €500 million in the first half of 2025, the second half of the year proved far more difficult. In a financial preview issued on Feb. 6, the company projected a second-half adjusted operating loss between €1.2 billion and €1.5 billion.
These “adjusted income” figures account for discrete and rare events, including restructuring charges, termination costs, and significant asset write-offs. When combined with the first-half performance, these results are expected to put the group in the red for the first time in its history.
Impact of Impairments and Strategy Shifts
The scale of the net loss is even more pronounced. Stellantis recorded a first-half net loss of €3.2 billion, which included €1.4 billion in investment write-offs stemming from platform impairments and canceled programs.
The situation intensified in the latter half of the year. The company confirmed it is taking €22.2 billion in write-downs for the second half of 2025 alone. Consequently, Stellantis predicts a second-half net loss ranging from €19 billion to €21 billion. These massive charges underscore the high costs associated with shifting legacy manufacturing platforms toward a purely electric future, particularly when certain programs are deemed no longer viable in a shifting market.
The automotive industry is now looking toward February 26, 2026, when Stellantis is scheduled to announce its detailed, audited full-year 2025 results. This report will provide further clarity on the group’s restructuring efforts and its revised roadmap for electrification.
