Latest news with #STLA
Yahoo
12 hours ago
- Automotive
- Yahoo
Stellantis NV (STLA) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Revenues: Approximately EUR74.3 billion for the first half of 2025. Adjusted Operating Income (AOI): Approximately EUR540 million, excluding EUR3.3 billion of net charges. Net Loss: Approximately EUR2.3 billion, inclusive of unusual items. Industrial Free Cash Flow: EUR3 billion outflow. Tariff Impact: Approximately EUR330 million net impact in the first half. Foreign Exchange Impact: Just under EUR1 billion year-over-year, primarily related to the Turkish lira, euro, U.S. dollar, and Brazilian real. Inventory Levels: Total vehicle inventories unchanged from the prior six months; OEM inventories up 60,000 units, dealer inventories down 60,000 units. Warning! GuruFocus has detected 12 Warning Signs with STLA. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Stellantis NV (NYSE:STLA) reported net revenues of approximately EUR74.3 billion for the first half of 2025, indicating strong sales performance. The company launched several new products, including five new B and C segment entries in Europe, which are expected to drive future growth. Stellantis NV (NYSE:STLA) saw sequential improvement from the second half of 2024, with increased volumes and revenues, improved AOI margin, and reduced cash flow outflows. The Middle East and Latin America regions showed strong performance, contributing positively to the company's AOI. Stellantis NV (NYSE:STLA) plans to reestablish financial guidance on July 29, 2025, indicating a proactive approach to addressing current challenges. Negative Points The company reported a bottom line net loss of approximately EUR2.3 billion for the first half of 2025, reflecting significant financial challenges. Stellantis NV (NYSE:STLA) experienced lower-than-expected volumes due to a sluggish European LCV market and lower production ramp-up of newly launched products. Higher industrial costs, including increased fixed asset absorption and warranty costs, negatively impacted profitability. Foreign exchange fluctuations, particularly involving the Turkish lira and euro, resulted in a negative impact of just under EUR1 billion year-over-year. Tariffs had a net impact of approximately EUR330 million in the first half, with expectations of increased impact in the second half. Q & A Highlights Q: Can you explain the continued market share losses in the U.S. and Europe, and how the ramp-up for the Smart platform has been an issue? A: Douglas R. Ostermann, Stellantis NV - Chief Financial Officer: Our market share in Europe is up by about 130 basis points compared to the second half of last year, thanks to new product launches. However, the ramp-up has been slower than expected. The sluggish European LCV market, where we hold a 30% share, has also impacted us. We are addressing these issues with new product launches, including the Fiat Grande Panda, and are working on programs to encourage fleet renewals. Q: Should we expect higher margins in the Middle East, Africa, and LatAm regions due to strong performance? A: Douglas R. Ostermann, Stellantis NV - Chief Financial Officer: We continue to have a strong business in the Middle East, supported by a young and affluent population. Our brands are well-received, and we are well-positioned in these regions. Detailed regional performance will be discussed in the upcoming call on July 29. Q: Can you comment on the gap between operating cash flow and free cash flow? A: Douglas R. Ostermann, Stellantis NV - Chief Financial Officer: The difference is due to the inclusion of the financial services business in operating cash flow, which saw increased capital use, particularly in North America. The industrial free cash flow, which excludes financial services, was negative due to insufficient AOI to cover R&D and CapEx. Q: What actions are being taken to regain market share in the Ram fleet segment? A: Douglas R. Ostermann, Stellantis NV - Chief Financial Officer: We are reintroducing the V8 engine in the Ram pickup truck and launching the Express model to address the lower end of the market. We are also improving production numbers to regain fleet market share and have reintroduced Ram into NASCAR to boost brand excitement. Q: How do you view the liquidity of the business, and what are your expectations for cash generation in the second half? A: Douglas R. Ostermann, Stellantis NV - Chief Financial Officer: We aim to maintain liquidity at 25% to 30% of trailing 12-month revenues. Despite first-half cash burn, we remain within this range. We issued debt in the U.S. and European markets to cover upcoming maturities. We plan to generate positive industrial free cash flow in the second half, with more details to be provided on July 29. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Insider
15 hours ago
- Automotive
- Business Insider
Auto Giant Stellantis (STLA) Warns of $2.7 Billion Loss Due to U.S. Tariffs
Automaker Stellantis (STLA) has warned that it expects to incur a net loss of 2.3 billion euros (US$2.68 billion) for the first half of this year due to the impact of U.S. tariffs. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. The Europe-based company behind vehicle brands such as Dodge, Jeep, Fiat and Chrysler also forecast first-half revenue of 74.3 billion euros, down from 85 billion euros a year ago. The preliminary figures replace Stellantis' financial guidance, which the company suspended on April 30, citing uncertainty caused by tariffs. The update reaffirms the challenges ahead for automakers in the wake of U.S. President Donald Trump's tariffs, and for new Stellantis CEO Antonio Filosa. The company said that its second-quarter vehicle shipments declined sharply due largely to the impacts of U.S. tariffs. North American Sales Specifically, Stellantis said its overall second-quarter shipments fell to an estimated 1.4 million vehicles, down 6% year-over-year. In North America, Stellantis said Q2 shipments are expected to decline by roughly 109,000 units, down an annualized 25%. On April 3 of this year, a 25% U.S. tariff took effect on all motor vehicles imported into America from foreign countries. Stellantis' financial results for the first half of the year will be released on July 29. STLA stock is down 21% so far in 2025. Is STLA Stock a Buy? The stock of Stellantis has a consensus Hold rating among 18 Wall Street analysts. That rating is based on four Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average STLA price target of $10.99 implies 16.36% upside from current levels.
Yahoo
a day ago
- Automotive
- Yahoo
Stellantis Expects Greater Tariffs Impact in Second Half as Weak Shipments Partly Drive First-Half Loss Guidance
Stellantis (STLA) said Monday that US tariffs will likely cost it more in the second half than they Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Automotive
- Yahoo
Stellantis expects $2.7B loss partly from tariffs: What to know
Stellantis (STLA) expects a net loss of $2.7 billion for the first half of 2025, due partially to the effects of tariffs. Yahoo Finance's Ramzan Karmali, who hosts Morning Brief: Market Sunrise, joins Market Catalysts with Julie Hyman to discuss the details. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Stellantis expects to swing to a net loss of $2.7 billion for the first half of the year due to pre-tax net charges and the effects of tariffs. Here with more context is the host of Market Sunrise, Ramzan Kamal. Ramzan, what's going on here? I mean, we've heard from the various European automakers and they're a little bit all over the map with the sort of reaction to tariffs and how they're handling all of it. Yes, so it's interesting, you know, don't forget Stellantis is the fourth largest car maker in the whole world. It's responsible for 14 brands. You know, probably know them for Chrysler and Dodge and Ram. And this loss of $2.7 billion, on the face of it, looks pretty bad, but it looks even worse if you compare it to the same period last year. Last year, it was actually making, for the same period, a profit of $6.5 billion roughly. So this number is pretty dramatic. They say that about $350 million is down to the tariffs, but it's also facing some huge charges. For instance, it's decided to pull out of making hydrogen cars and that's cost it money. But also it's facing charges of around, in total, around $3.85 billion, and that's also to do with new EU regulations on carbon emissions as well. Its light vehicles, commercial light vehicles have been pretty slow at changing over to being battery-only, battery-only engines. So that's really hurt it as well. So the business itself is also going through a bit of an upheaval as well, it's fair to say. You might remember Carlos Tavares who was the CEO for four years roughly. He quit suddenly in December. For four months, they didn't have a permanent CEO. It was an interim CEO and the actual current CEO only started in April. He was the boss of the North America division, Antonio Filosi, and he is being charged basically with turning the business around and resetting the on switch for Stellantis. Ramzan, all of that sounds like an uphill battle. Um and yet the shares are higher at the moment. What's going on there? So the shares in, so, well, for instance, Stellantis has shares listed not just in New York, but also in Milan and Paris as well. In Milan, in early trade, they were down over 4% at one point. They've recovered there. In the US, you can see they're up now around over 2%, but they were down in pre-market quite heavily as well. What's going on here is I think that maybe there might have been an overreaction perhaps at the start when they saw this big loss, but analysts also point out that actually Stellantis, compared to its rivals, is quite well positioned in North America. And North America is clearly the problem area for a lot of these European car makers, but Stellantis is quite well positioned because it has a lot of production in the US and it's pretty compliant in terms of tariffs with Mexico and Canada as well. And so I think that probably may be outweighing some of the doom and gloom that we may have heard earlier. Right. And also, context here, the shares are down 28% this year, at least the US shares, even with the little bit of a bump today. Ramzan, thank you so much, appreciate it. Exactly. Related Videos Why so many companies are trying to become banks Trump's tariffs: Lutnick reaffirms Aug 1 'hard deadline' Trump's 'hard deadline,' the case for Powell, Stellantis: 3 Things IPO outlook: Why you can expect 'more activity' this fall Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
Stellantis (STLA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Stellantis (STLA) was down 2.23% at $9.20. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.05%. The automaker's shares have seen a decrease of 1.47% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 3.5% and the S&P 500's gain of 5.37%. The upcoming earnings release of Stellantis will be of great interest to investors. The company's earnings report is expected on July 29, 2025. For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.6 per share and a revenue of $180.52 billion, signifying shifts of -40.3% and -11.99%, respectively, from the last year. Investors might also notice recent changes to analyst estimates for Stellantis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 18.71% lower within the past month. At present, Stellantis boasts a Zacks Rank of #4 (Sell). Looking at its valuation, Stellantis is holding a Forward P/E ratio of 5.9. This represents a discount compared to its industry average Forward P/E of 9.75. It's also important to note that STLA currently trades at a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Foreign industry currently had an average PEG ratio of 1.06 as of yesterday's close. The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 228, placing it within the bottom 8% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stellantis N.V. (STLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
