Stellantis Stock: Profit Plunges 70%, Investors Alarmed

Stellantis is experiencing one of its most severe financial crises as the European automotive giant reported a dramatic 70% collapse in profit to €5.5 billion last year. The company's adjusted operating profit margin plummeted from a solid 12.8% to a concerning 5.5%, triggering investor anxiety and a 4.5% drop in share price to €12.88 in Paris trading. The stock, which previously traded above €27, has struggled to break free from the €12.50 mark since late September. In response to these troubling figures, Stellantis has drastically reduced its dividend from €1.55 to just €0.68 per share. Total revenue fell by 17% to €156.9 billion as vehicle deliveries decreased by 12%, with the second half of the year proving particularly challenging when adjusted operating profit crashed to a mere €185 million.

Cautious Outlook for 2025

The primary source of Stellantis's financial troubles lies in the American market, traditionally a profit center for the multi-brand corporation. Excess inventory at dealerships forced the company to cut production and increase discounts to reduce stock levels. For the current year, interim leadership under John Elkann remains cautious, forecasting another mid-single-digit percentage margin-a projection analysts describe as "uninspiring" and below their average expectation of 6.4%. Despite these challenges, the company plans to introduce ten new models to stimulate revenue growth and improve its financial position after losing €6 billion from vehicle operations in the previous year. Management has emphasized its determination to regain market share and enhance financial performance throughout 2025.