Stellantis shares gained 13% on Wednesday, closing at $4.69 on the New York Stock Exchange, while shares in Milan climbed 15.4% to 4.28 euros. The gains reflected investor confidence in the European automaker’s third-quarter financial performance and strategic direction under its 60 billion euro turnaround initiative.
The company reported third-quarter revenues increased 1% to 37.6 billion euros compared to the prior year, while adjusted operating income surged 184% to 256 million euros from 90 million euros a year earlier. Industrial free cash flow improved to negative 4 billion euros, compared to negative 4.3 billion euros in the prior-year quarter. Stellantis reconfirmed its 2026 guidance and reiterated its target to achieve positive free cash flow next year, a metric closely watched by investors. The automaker’s 2026 outlook includes a mid-single-digit percentage increase in net revenue and a low-single-digit adjusted operating margin.
CEO Antonio Filosa stated the company is ahead of schedule on its cost-cutting initiatives announced in May, projecting cost reductions will exceed the previously disclosed 6 billion euro target by 2028, including 2.4 billion euros in reductions beginning 2027. Analysts noted the results beat diminished expectations, with one noting that while the quarter was uneven, Stellantis maintained its full-year guidance while competitors were reducing forecasts due to elevated expenses.
The turnaround plan includes 36 billion euros in investment across its automotive brand portfolio, with 60% directed toward its struggling North American operations. Stellantis is targeting approximately 23% revenue growth from 154 billion euros last year to 190 billion euros by 2030, with a 7% adjusted operating margin by that time. The plan encompasses introducing new vehicles, refreshing existing models, and integrating new technologies. European automakers including Stellantis face mounting challenges in China, where domestic competitors are gaining market share, prompting some manufacturers to reassess their regional exposure.
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