Stellantis N.V.

What they do

Stellantis was formed by the 2021 merger of Fiat Chrysler Automobiles and Groupe PSA. The company operates manufacturing, assembly and distribution facilities worldwide and sells vehicles through dealer networks. It also provides financial services, including retail and dealer financing, primarily through captive finance subsidiaries.

Revenue drivers

• Vehicle sales — Revenue is generated from wholesale shipments of cars, trucks and light commercial vehicles to dealers and distributors. This is the largest revenue source, driven by volume and pricing across regions and brands.
• Financial services — The company earns interest and fee income from retail financing, leasing and dealer floorplan lending. This segment supports vehicle sales and contributes a smaller, but steady, share of revenue and profit.
• Parts and service — Stellantis sells spare parts, accessories and provides maintenance and repair services through its dealer network and distribution centers. This aftermarket business generates recurring revenue and higher margins.
• Other activities — Includes revenue from the sale of production systems, engines and components to third parties, as well as mobility services and other miscellaneous activities. These activities are not individually material to total revenue.

Recent performance

For full year 2025 Stellantis reported revenues of €181.3 billion, up 3% compared to 2024, driven by higher volumes in North America and Europe. Net profit was €5.6 billion, a decrease from €7.8 billion in 2024, primarily due to higher raw material costs and increased investments in electrification. Industrial free cash flow was €4.2 billion, reflecting strong cash generation from operations. The company ended 2025 with total available liquidity of €61.4 billion, providing financial flexibility.

Strategy

Stellantis is executing its Dare Forward 2030 strategic plan, which targets carbon net zero by 2038 and a 100% battery electric passenger car mix in Europe by 2030. The company is investing in battery joint ventures, including NextStar Energy in Canada, to secure cell supply. It is also realigning its product portfolio and discontinuing certain programs, such as hydrogen fuel cell development, to focus resources on electrification and software-defined vehicles. The plan includes platform consolidations and cost reductions to improve efficiency and fund future technologies.

Risks

• Electrification transition risk — The shift to electric vehicles requires significant capital investment and timely delivery of competitive products, while consumer adoption and government incentives remain uncertain.
• Raw material and supply chain risk — Stellantis depends on scarce commodities like lithium and semiconductors; price volatility or supply disruptions could increase costs and disrupt production.
• Regulatory and trade risk — The company faces increasingly stringent emissions regulations and potential tariffs or trade barriers that could affect vehicle costs and market access.
• Market competition risk — Stellantis competes with established automakers and new entrants, particularly in electric vehicles; failure to maintain market share could pressure pricing and profitability.

Outlook

Management expects continued revenue growth in 2026, supported by new product launches and a recovery in vehicle demand. The company anticipates further investments in electrification and software, which will weigh on near-term margins. Stellantis targets industrial free cash flow of €5-6 billion for the full year 2026. It also expects to maintain a strong balance sheet and return capital to shareholders.