Stellantis: North America Returns to Profitability in Third Quarter, Europe Swings to Loss
Stellantis published third-quarter results on October 28, 2026, showing year-over-year improvements across all group indicators, and confirmed its 2026 financial targets, including positive industrial free cash flow in 2027. The regional performance map, however, has reversed.
North America, which posted a deficit a year earlier, returned to positive adjusted operating results, while expanded Europe swung into operating loss despite higher volumes. This publication comes after a turbulent stock performance: the share touched a five-year low of €3.71 on October 22, 2026, before rebounding by nearly 4% on October 26.
Revenue of €37.6 Billion, Exceeding Expectations
Third-quarter revenue reached €37.6 billion, up 1% year-over-year. Analysts had anticipated an average of €35.91 billion. Adjusted operating income reached €256 million, compared to €90 million a year earlier, representing a margin of 0.7% versus 0.2%.
Net loss was reduced to €453 million, compared to €4.532 billion in the third quarter of 2025, a period that had been penalized by significant exceptional items. Adjusted diluted earnings per share came in at -€0.01, when consensus had expected -€0.04.
Industrial free cash flow remained negative at -€4.0 billion, an improvement of €0.3 billion year-over-year. Over the first nine months, revenue grew 7% to €119.2 billion, and adjusted operating margin increased from 0.6% to 1.7%.
The group posted net income of €217 million over this period, compared to a loss of €6.788 billion a year earlier.
Europe Penalized by Negative Net Prices and Unfavorable Mix
In North America, revenue declined 3% to €15.6 billion, with deliveries down 12% due to planned production stoppages on certain Jeep models, including the Grand Cherokee and Compass. The region's adjusted operating result nonetheless improved by €539 million, to €64 million.
This North American turnaround was driven by positive net prices and industrial cost savings, partly offset by the decline in volumes. Regional margin thus increased from -3.0% to 0.4%.
Expanded Europe followed the opposite path. Deliveries there rose 10% and revenue by 3%, to €14.1 billion, but adjusted operating result declined by €468 million, to -€311 million.
This decline is mainly explained by negative net prices and an unfavorable mix, partially offset by volumes and cost savings. European margin fell from 1.2% to -2.2%, and market share in the EU30 zone declined by 60 basis points, to 14.8%.
South America generated €431 million in adjusted operating income, for a margin of 10.5%. The Middle East and Africa zone saw revenue fall 19%, but its margin improve from 13.2% to 14.6%.
2026 Targets Confirmed, Positive Industrial Free Cash Flow Targeted for 2027
Stellantis confirmed single-digit average annual revenue growth, a single-digit low adjusted operating margin, and industrial free cash flow improving year-over-year. The latter includes approximately €1.6 billion in cash outflows related to charges from the second half of 2025.
For the fourth quarter, the group expects deliveries higher than those of the third quarter and a positive contribution from working capital requirements, linked to usual seasonality. It also anticipates additional costs related to memory chips and vehicle recalls.
Net tariffs are estimated at €1.0 billion for the year, of which €0.6 billion borne by end of September.
Available liquidity from industrial operations stood at €42.7 billion at end of September, compared to €45.7 billion at end of 2025, representing 26% of revenue for the past twelve months. This level remains within the 25% to 30% range targeted by the group.
According to analyst consensus reviewed, the share trades at approximately 6.5 times expected earnings for the current fiscal year.
The group expects savings from its value creation program to reach several hundred million euros in the fourth quarter, approximately double those of the third quarter. It thus targets implementation of at least 40% of the €6 billion in cost savings on an annualized run-rate basis by year-end.
