Shares slid as much as 8.2% on Wednesday after Stellantis posted second-quarter results that told two very different stories — a headline revenue beat and a profit margin so thin it raised fresh doubts about how quickly the automaker's turnaround plan can deliver. The stock sat near €4.85, well below analyst price targets averaging roughly €11.97, signaling the market is deeply skeptical.
Revenue Is Growing, but the Money Isn't Dropping to the Bottom Line
Net revenues rose 13% year-over-year to €43.5 billion, powered by a 32% jump in North America. Yet analysts at Citi called the 1.8% adjusted operating income margin "perplexing" given strong quarter-on-quarter revenue growth. That margin actually fell from the 2.5% posted in Q1, meaning Stellantis is selling more cars but keeping less on each one. The company is being squeezed alongside Volkswagen and BMW by growing competition from Chinese carmakers, hefty tariffs, and rising costs.
Europe, the Other Half of the Business, Is Losing Money
Enlarged Europe revenues were flat at €16.4 billion, and the region posted a negative -0.6% margin — the only division in the red. For a company born from a French-Italian merger, an unprofitable home market is a structural problem, not a one-quarter blip. While European sales declined 6%, Stellantis gained 20 basis points of market share and held the No. 2 position in passenger cars and light commercial vehicles. Share gains that come with losses attached aren't much comfort.
Tariffs Could Eat Up to €1.2 Billion This Year
Stellantis estimated U.S. tariff costs for 2026 at €1.0–€1.2 billion and warned second-half performance would skew toward Q4 after a summer production shutdown. That back-loaded guidance asks investors to be patient — precisely when patience is running out.
The Full-Year Outlook Barely Moves the Needle
Management reaffirmed full-year forecasts calling for mid-single-digit revenue growth, a low-single-digit operating margin, and positive industrial free cash flows only in 2027.
Net profit swung to €293 million from a €1.87 billion loss a year ago — progress, but at a €43.5 billion revenue base, that's a net margin below 1%. First-half net income of €670 million beat Bloomberg expectations of €555 million , yet the stock still sold off, proving that investors want margin expansion, not just survival.
The bottom line: Stellantis is selling more vehicles than ever but barely profiting from them — and until margins clearly inflect, the stock's deep discount to analyst targets may be entirely justified.