Stellantis, the multinational automaker owning brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, returned to profitability in the second quarter. The company reported net profit of 293 million euros for the April to June period, marking a significant turnaround from a 1.87 billion euro loss in the comparable prior-year quarter.
Adjusted operating income more than tripled to 773 million euros in the recent quarter from 213 million euros a year earlier. However, this figure came below the Reuters analyst consensus estimate of 914 million euros. Chief Executive Antonio Filosa attributed the quarterly progress to continued strength in North America alongside contributions from other regions, noting that execution of the FaSTLAne 2030 strategy remained on schedule with new product launches proceeding as planned.
The company generated industrial free cash flows of 1 billion euros at the end of June, surpassing Citi’s projection of 600 million euros. Despite the positive cash generation, analysts at Citi noted that the adjusted operating income margin remained at a low level of 1.8%, suggesting that while operating performance had improved, significant challenges persisted.
Market reaction to the results proved negative. Stellantis shares declined sharply on the announcement, initially plunging more than 8% before recovering somewhat. The stock was last trading down approximately 5% on the day. Citi analysts indicated that investors would likely await further evidence of sustained operating performance improvement before reassessing the company’s stock.
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