Stellantis CEO: Earnings 'Fell Short Of Expectations,' Expect 20 New Vehicles This Year

Stellantis NV STLA stock plunged after the automaker reported dismal financial results for the first half of 2024 on Thursday.

• Net revenue was 85 billion euros ($91.53 billion), down 14% year over year, primarily due to the decline in volume and mix.
• First half net profit came in at 5.6 billion euros ($6.07 billion). That’s down 48% compared to the first half of 2023.
• Adjusted EPS declined by 35% Y/Y to 2.36 euros.
• Combined shipments declined by 12% year over year to 2.93 million units.
• Consolidated shipment decreased by 10% year over year to 2.87 million units.
• Adjusted operating income (AOI) declined by 40% year over year to 8.5 billion euros, primarily due to decreases in North America. The margin declined by 440 bps to 10%.
• Total inventory was reduced by 3% to 1,408 thousand units.
• The company used 392 million euros in Industrial free cash flows.

Stellantis CEO Carlos Tavares noted that the first half of 2024 “fell short of our expectations.”

The Auburn Hills, Michigan-based company plans to launch “no fewer than 20 new vehicles” this year, he added.

What’s Next: Stellantis aims to address weak margins and is prepared to eliminate underperforming brands.

“If they don’t make money, we’ll shut them down,” Tavares told reporters. Following a new cooperation agreement, Stellantis now also counts China’s Leapmotor as its 15th brand.

Outlook: Stellantis reiterated financial guidance of double-digit AOI margin in 2024 and positive Industrial free cash flow.

Price Action: STLA shares traded lower by 8.37% at $17.96 premarket at last check Thursday.