Stellantis stock rises 13% as automaker's turnaround plan, cost cuts gain traction

Summary

• Stellantis third-quarter revenues rose 1% to 37.6 billion euros.
• Adjusted operating income increased 184% to 256 million euros from 90 million euros a year earlier.
• Industrial free cash flow improved to negative 4 billion euros from negative 4.3 billion euros the prior year.
• The company reconfirmed its 2026 guidance to achieve positive free cash flow in 2027.
• Stellantis stock rose 13% on the New York Stock Exchange to close at $4.69 per share.
• Shares in Milan closed at 4.28 euros, up 15.4%.
• CEO Antonio Filosa stated the company is ahead of schedule on its turnaround plan announced in May.
• Stellantis expects to exceed its 6 billion euro cost-cutting target by 2028, including 2.4 billion euros starting in 2027.
• The 2026 guidance includes a mid-single-digit percentage increase in net revenue.
• The 2026 guidance includes a low-single-digit adjusted operating margin.
• The turnaround plan involves 36 billion euros in investment, with 60% allocated to the North America sector.
• The company plans to introduce new vehicles, refresh models, incorporate new technologies, target 23% revenue growth by 2030, reach 190 billion euros in revenue by 2030, 7% adjusted operating margin by 2030.
• European carmakers face intensifying competition in China from domestic brands like Xiaomi, BYD, Geely.
• CEO Antonio Filosa called for European regulations that incentivize, reward, protect companies that design engineer vehicles in the region.