Crisis-stricken auto giant Stellantis announced on February 26, 2025, that it anticipates a return to revenue growth in 2025 following a significant 70% decline in net profit for 2024. The company, which produces well-known brands such as Jeep, Dodge, and Fiat, reported a net profit of 5.5 billion euros ($5.77 billion) for the year, down from 18.6 billion euros in 2023.
- Stellantis expects revenue growth in 2025.
- 2024 net profit fell 70% to €5.5 billion.
- New CEO to be appointed in H1 2025.
- Net revenues decreased by 17% year-over-year.
- Company faces challenges in North America and China.
- Strategic milestones achieved despite poor performance.
Stellantis also revealed that net revenues dropped by 17% to 156.9 billion euros, while the adjusted operating income margin settled at 5.5%. This announcement comes amid ongoing leadership changes, as the company seeks a new CEO after Carlos Tavares’s departure.
Stellantis, a multinational automotive manufacturer, has faced considerable challenges in recent months, including declining sales and market performance issues, particularly in North America and China. The company’s net profit for 2024 sharply decreased to 5.5 billion euros, a significant drop from the previous year’s profit of 18.6 billion euros. Analysts had projected a net profit of 6.4 billion euros for 2024, indicating a larger-than-expected downturn.
Key financial highlights from Stellantis’s 2024 earnings report include:
- Net revenues of 156.9 billion euros, down 17% from 2023
- Adjusted operating income margin of 5.5%, at the lower end of guidance
In a statement, Chairman John Elkann acknowledged the stark contrasts in the company’s performance, emphasizing that while 2024 did not meet expectations, critical strategic milestones were achieved. These include the rollout of new multi-energy platforms, the commencement of EV battery production through joint ventures, and the launch of a partnership with Leapmotor International. Elkann expressed a commitment to improving financial performance and gaining market share in the coming years.
Despite these efforts, shares of Stellantis fell by 4% following the earnings announcement. The company had previously issued a profit warning in September, indicating lower-than-expected sales across most regions for the latter half of 2024.
In summary, Stellantis’s 2024 financial results highlight significant challenges, but the company is optimistic about a return to growth in 2025. With ongoing leadership transitions and strategic initiatives underway, Stellantis aims to navigate the current automotive landscape effectively.
