Stellantis Full Year 2025 Stellantis NV Preliminary Earnings Call | AllMind AI Earnings | AllMind AI
Full Year 2025 Stellantis NV Preliminary Earnings Call
Speaker #1: Ask questions at the end of the call by typing #5 on your telephone keypad. Please do not exceed one question per person, and if necessary, an additional one.
Speaker #1: I now give the floor to Mr. Ed Ditmeyer, Head of Investor Relations, to begin today's conversation. Sir, the floor is yours.
Speaker #2: you. Hello everyone, and thank you for Thank joining us today as we review Stellantis's H2 2025 preliminary financial results. The presentation material for this call, along with the related press release, were posted under the Investors section of the Stellantis Group website.
Speaker #2: Today, our call is hosted by Antonio Filosa, Chief Executive Officer and Joao Laranjo, Chief Financial Officer. After their prepared remarks, Antonio and Joao will be available to answer questions from analysts.
Speaker #2: Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor Statement, included on page two of the presentation.
Speaker #2: As customary, the call will be governed by that language. Now, I'll hand over the call to Antonio Filosa, CEO of
Speaker #2: Stellantis. Thank you, Ed.
Speaker #3: Thank you very much, and thank you all for joining us today. What we are presenting today is a decisive reset for our future profitable growth.
Speaker #3: We are today resetting our organization by empowering our regional teams so that they can accelerate decision-making processes and maximize rigor of execution. We are dramatically resetting our stakeholder relationship, improving all of them, including relationships with our employees, with our partners, the dealers, the the unions.
Speaker #3: We are resetting our product suppliers, the governments, and line, and our EV supply chain, to reflect much more real customer demand and shifting regulation following an initial overestimation of pace of adoption of electrification in the regions.
Speaker #3: We are resetting execution, and improving quality management processes, to address previous operational issues, triggered by past decisions. Those are changes very needed, necessary, that we are aggressively implementing implementation is all in progress, and they are delivering to us initial signs of recovery, already in H2 25.
Speaker #3: So let me talk a little bit about those initial signs of recovery. That will deliver positive foundation for 26 and forward. The first bucket of early improvements is execution improvements.
Full Year 2025 Stellantis NV Preliminary Earnings Call
Speaker #3: We have a new leadership team in place. We have a much leaner organizational structure. We are given power to the regions enhancing local decision-making processes.
Speaker #3: We have recruited more than 2,000 engineers in 25, mainly North them, a lot of field professionals and skilled traders for our plants. We have already enhanced quality.
Speaker #3: With one month in service KPI, which is improving more than America, more than 30% in Europe, this is in 25. The second bucket of improvement is about our product in 25, 10 all-new products in all regions.
Speaker #3: We are returning the 8 to momentum. We are launched our RAM 1500 pickup truck, and we will increase any production a lot in 2026.
Speaker #3: We are progressing the rollout of smart car lineup in Europe, with substantial incremental product offerings, such as the Fiat Grande Panda, for instance, monotonely.
Speaker #3: We have been recovering past launching in quarter four 25, delays, many new products, including which is our Jeep fundamental player in the largest individual segment in the world, the midsize SUV segment in the United States, more than 3 million units sold every year.
Speaker #3: We are launching Dodge Charger IZ6 pack, that together with the Dodge Charger Daytona BV is car of the year for awarded. We are launching the Fiat 500 Hybrid in Italy, and those launches we all expand our market coverage in 26.
Speaker #3: The third bucket of improvement is about our return to growth. We increased our global shipment half two 25 versus half two 24 by 11%, and our North American shipments in the same period by 39%.
Speaker #3: In Europe, we are retaining our segment leadership in the all hybrids market, in the B segment, and in very profitable light commercial vehicle markets.
Speaker #3: And in South America and in Middle Eastern Africa, we are keeping our growth. The fourth bucket of improvement is our order book, which is very robust.
Speaker #3: So our order intake in Europe increased by 13% in half two 25 when compared to half two 24, and 23% only in quarter four 25 when compared to the same period of 24.
Speaker #3: Our order book in North America is up more than 150%, and this is driven by accelerated demand of the new RAM, Jeep, and Dodge products.
Speaker #3: We are receiving year-to-date more than 60,000 orders for our 26 model year RAM 1500 Hemi V8 engine powered. And we have sold out our planned production for model year 26 of the recently launched two-door Dodge Charger 6 pack SCAT pack.
Speaker #3: Through the renewed product strategy, we are addressing many white spaces in the markets where we compete, and this is a very big opportunity for us in 26.
Speaker #3: So in half one 26, we will launch our RAM 1500 TRX. We will launch our all-electric Jeep Recon. We are already launching the new Jeep Grand Wagoneer.
Speaker #3: We are already launching the new Fiat Grande Panda IZ. All those products will enhance our market coverage for 26. And also the many launches of half two 25 will give us a full benefit in 26 of additional market coverage.
Speaker #3: This is the case of the launch of the eight launches that we see in the bottom of the slide, including RAM 1500 Hemi V8, RAM 1500 Espresso, in South America, the RAM Dakota, our midsize pickup truck over there, as we mentioned before, our Dodge Charger IZ6 pack together with the BV car of the year in North America.
Speaker #3: Our Fiat 500 MHEV, our Jeep Cherokee Hybrid, the return of a historic and iconic nameplate in the largest individual segment in the world. In Europe, the Jeep Compass BV, and in Europe again, the Citroën C5 Aircross BV.
Speaker #3: And now I leave the word to Joao.
Speaker #2: Thank you, Antonio. As part of our 2025 second half results, we are announcing 22 billion euros worth of charges that are excluded from AOI.
Speaker #2: We have broken this out for you into three categories: 14.7 billion euros related to product plans, it includes write-offs of canceled products of 2.9 billion, and also impairment of certain platforms of 6 billion.
Speaker #2: This is primarily due to substantially reduced volume and profitability expectations for BV products. It also includes approximately 5.8 billion in projected cash payments expected to be paid over the next four years.
Speaker #2: 2.1 billion euros related to steps taken to resize the EV supply chain. This includes a total of 700 million in cash payments expected to be paid over the next four years.
Speaker #2: 5.4 billion euros related to other items. This includes 4.1 billion due to a change in estimate for contractual warranty provisions. And 1.3 billion of restructuring and other charges.
Speaker #2: The vast majority of charges relate to necessary corrective actions have been taken in 2025. Now, let me review the preliminary results for the second half.
Speaker #2: Revenues rose 10% year over year at the preliminary estimate midpoint on 11% higher consolidated shipments. AOI was negative in the range of 1.2 to 1.5 billion euros.
Speaker #2: Industrial free cash flow was negative in the range of 1.4 to 1.6 billion euros. This represents approximately half of the negative 3 billion euros in the first half of 2025.
Speaker #2: Now, let's dive deeper on the AOI topic. We finished below our AOI expectation for the second half of 2025 due to a combination of specific items which more than offset improvements in other areas.
Speaker #2: First, let's go through the items impacting industrial costs. Warranty expense for second half was 700 million euros higher year over year. 500 million euros of this was triggered by the change in estimate related specifically to vehicles shipped in the first half of 2025.
Speaker #2: Another 200 million euros of warranty expense related to the recall of certain now discontinued PHEV models. The company also booked 500 million euros in compliance fine provisions.
Speaker #2: Related to European LCV volumes. This represented the entire 2025 full year accrual booked in the second half, and moving forward, we project this should be about 300 million euros lower in the first half of 2026.
Speaker #2: Lastly, there were also 500 million euros related to two items: a supplier bankruptcy and forecast incurred due to disruption of the aluminum supply chain.
Speaker #2: Next, two items in the financial service business had a negative impact of 400 million euros in the effects and other bucket. The first was due to the residual value impact incurred in the US for the now discontinued PHEV models.
Speaker #2: And the second was a provision related to an industry-wide motor finance redress program in the UK. So in total, there was 2.1 billion euros of negative impact from the specific items I mentioned.
Speaker #2: At the same time, core foundational business drivers like volumes, price, industrial efficiency, and purchasing costs were all moving in the right over what we expect for the full year 2026 financial guidance.
Speaker #2: over year. Included 2 billion euros in projected cash payments in 2026, of which approximately 1 billion euros is expected in the first quarter. We expect a return to positive industrial free cash flow in Now, let us turn to 2027.
Speaker #2: so. The decision to not pay a dividend this year reflects our net loss. Next, the board has authorized the company to hybrid bonds. This issue up to 5 billion euros of action will contribute to preserving strong balance sheet and liquid company works to return the business to positive industrial free cash flow generation.
Speaker #2: The company finished 2025 with industrial available liquidity of approximately 46 billion euros. Representing a ratio of 30% to net revenues. At the top end of our 25 to 30% target range.
Speaker #2: I want to briefly flag that we are to better understand sharing a supplemental slide for you information on the change in estimate on warranty.
Speaker #2: I will now hand you back to Antonio. Thank you, Joao. you this final slide So to conclude, I present to where, again, I'm presenting a decisive reset to make customer preferences our only guide plan and for the business of Stellantis.
Speaker #2: We have a new CEO, we have a new team in place, we have a new approach to the mini markets where we are relevant, and a new vision that we will be delighted to share with all star for the future of our business of you on May 21st, 26, in our investor day.
Speaker #2: Just some highlights about what we said today. Customer is back at the center of our business strategy. We drive our product plan driven by demand, rather than command.
Speaker #2: And we are very delighted by the very positive reception of our dealers and our customers over the new products that we recently presented to the markets.
Speaker #2: We have a new organization in place; we have empowered regions in our decision-making process will be faster and leaner because closer to customers. We have new expanded range of products, some attacking white spaces where we were not present, some others that represent important return of beloved nameplates in our lineup.
Speaker #2: We are execution. We are improving a lot quality governance and quality processes. Our one-month in services in North America has improved in 25 by 50%.
Speaker #2: Our one-month in services in Europe as KPI has improved in 25 by more than 30%. And we are recruiting. We are recruiting engineers, more than 2,000, to support our quality and time-to-market needed improving a lot manufacturing improvement.
Speaker #2: A profound reset that put our customer at the center of what we do. It comes with a cost, as Joao has already explained. But a very needed and important one to set us back on the road of business growth.
Speaker #2: That is all from my side. And now we will take your questions. Thank you very much.
Speaker #3: Thank you. As a reminder to ask your question, please type pound key five on your telephone keypad. Please do not exceed one question per person, and if necessary, an additional and related one.
Speaker #3: So the first question is coming from the line of Patrick Hummel from UBS. Your line is
Speaker #3: So the first question is coming from the line of Patrick Hummel from UBS. Your line is open. Thank you very
Speaker #2: much, hi Antonio, hi Joao, hi Ed. Thanks for taking my questions. I would like to start with AOI. Looking at your 2026 guide, low single-digit, I guess, translates into one, two, three percent.
Speaker #2: AOI margin. Now, the second half of 2025, if I strip out those non-recurring items, that are within the AOI, the clean margin of the second half of last year seems to be around 1%.
Speaker #2: So basically, you're guiding for a very moderate margin expansion, if I take the midpoint of just around 100 basis points. And that, despite quite and you're guiding the top lineup mid-single digit.
Speaker #2: So I'm just wondering if you can share a bit more color about the puts and takes, why there is so little operating leverage despite a better top line.
Speaker #2: And if you can, also by regions. Is it just that Europe or the third engine is worse? Or is it that the recovery path and the US is flatter than what we had in mind?
Speaker #2: And my second question is a very, very simple one. Can you just say loud and clear that with the measures announced today for the balance sheet, rights issue is off the table?
Speaker #2: Thank strong progress made on the commercial front, you.
Speaker #4: Okay, Patrick, thanks very much for your question. So I'll address the second one first. We are not contemplating any that we are contemplating. equity raise.
Speaker #4: So that is not something On the AOI, we expect to see a continuous improvement in 2026. And the key drivers for the improvement in AOI throughout 2026 will be volumes, as we ramp up the production of the new volumes, as we are indicating in our guidance.
Speaker #4: We expect mix to be a positive in US. We've had a reduction of PHEVs and VEVs and increase of HEMIs. We expect price to be basically flat with positive improvements in US, likely some negative price in Europe, given the strong competition.
Speaker #4: And then we have headwinds on tariffs and raw materials. Off around 1 billion that we expect to offset with industrial cost efficiencies due to the higher volume and much better operational execution.
Speaker #4: And then there is the non-recurrence specific items. So our guidance incorporates those levers and we expect to make as much progress as we can throughout 2026.
Speaker #2: Well, and complementing what Joao just said, so the pace of our reset, because this is a new successful product profound strategic launches that we will execute with very high quality.
Speaker #2: So the speed of this reset is driven by those launches, that requires time, obviously, that we will deliver to the market with high-quality standards.
Speaker #2: When it comes to the regions, the major engines of our business growth will be North America, US specifically, where we have a big concentration of new product launches coming to the market and a very high expectation around that.
Speaker #2: It is important to remind that our order book in North America is up 150% year over year. And our market share is growing. Especially the US retail market share, which is obviously the most profitable.
Speaker #2: And this is a very good sign. So those are the major answers to your question. I thank you for that.
Speaker #3: Thank you. The next question comes from José Asumendi from JP Morgan. Your line is open.
Speaker #5: Thank you very much. Thank you, Antonio, Joao, for the presentation. It's hosted from JP Morgan. Just one question, please. I can clearly see how the white space products or the products coming into white space are going to give you that additional momentum in volumes and earnings.
Speaker #5: I just my question is, is there not a need to take more drastic action in Europe taking down capacity? Or is it simply another word?
Speaker #5: Can you talk about how the announced measures are going to help improve our industrial footprint both in Europe and in North America? Thank you.
Speaker #2: for this question. And I will Well, thank you very much answer to that. This profound reset that has been done to put back our customers in all the regions at as a company, obviously, it comes with a strategy of business growth.
Speaker #2: That is why we are investing $13 billion in the next four years in US with the launches of five all-new products and 19 relevant.
Speaker #2: That is why only in 2025 we launched globally more than 10 all-new products. North America, Europe, but also South America and Middle East and Africa.
Speaker #2: So once we put our real world customer demand at the center of what we do, and once we set up for ourselves a foundation through product launches of growth, our main strategy is to grow.
Speaker #2: Is to grow in North America, is to grow in Europe, is to consolidate South America, is to grow in Middle East and Africa, and elsewhere.
Speaker #2: Then obviously, our business is also a business of efficiency. So we will take a lot of care at industrial efficiency as well. And for what we think on our brand portfolio and our industrial footprint, well, we will share with a lot of pleasure all those considerations in our investor day May 21st of 2026.
Speaker #2: Thank you very
Speaker #2: much. Thank
Speaker #5: you. Looking forward to it.
Speaker #3: The next questions come from Philippe Ochoa from Jefferies. Your line is open.
Speaker #6: Yes, good afternoon and thank you. My question is on the perpetual hybrid bond. I'm just trying to understand, considering that how balance sheet, am I right to assume that the driver of that hybrid bond is more to protect the rating rather than add liquidity?
Speaker #6: And if I can follow up with that, is to what extent protecting the rating or I guess you're trying to protect the rating to continue to invest in the cap lens organization in the US?
Speaker #6: And if you can comment on this, is this the right logic? Am I thinking about it the right way? And as your balance sheet in any way constrain your ability to continue building that finco?
Speaker #6: And I'm just wondering, you've said up to 5 billion. Which suggests you could do less or and how could we think about the cost of that instrument?
Speaker #6: Currently, Volkswagen pays about 4.5% interest growth on that on a similar facility. Is that the kind of cost of funding we should be looking at?
Speaker #6: Thank you.
Speaker #2: Yeah, thank you. Well, the first thing is, obviously, the hybrid, it's one more instrument in our toolbox to make sure that our balance sheet continues to be strong and it's something that we are very focused on.
Speaker #2: Including to make sure that we protect our investment grade, which is very important to us and we are working very hard as well to improve the operating performance.
Speaker #2: Including to protect the growth of the finco here in the US. So all the points that you mentioned relate to the hybrids are the rationales that we are also looking at.
Speaker #2: And the cost of the hybrid, right now, it's at historical lows. So we think it's a very competitive instrument. And as you said, competition and other large companies especially in European use those instruments at large scale.
Speaker #2: So we think it's a very good instrument to add to our debt portfolio.
Speaker #6: Thank
Speaker #3: The next questions come from Thomas Besson from Kepler Chevreux. Your line is open.
Speaker #7: Hi, good afternoon. It's Thomas from Kepler Chevreux. I'd like to ask you a couple of questions, please, as well. First, when I look at your deck on page seven, could you please explain us the difference between your operating cash burn at about 2.4 1.5 billion?
People that can pays about 4.5% interest gross on that, um, on a similar facility is that the kind of, um, cost of funding, we should be looking at. Thank you.
Yeah, thank you. Um,
Well, the first thing is, uh, obviously, uh, the hybrid. It's
Speaker #7: Can you isolate the elements that are related to the bank and other items that can explain why there isn't a greater industrial cash 6.5 billion cash portion of the charges that you plan to pay over the next question is on the four years.
Uh, one more instrument in our toolbox. You, um, make sure that our balance sheet continues to be strong, and it's something that we are very focused on.
Um, including, uh, to make sure that we, uh,
We protect our investment grade, which, uh, is very important to us, and we are working very hard as well to improve the, uh, uh, the operating performance.
Speaker #7: Could you confirm that it has been agreed with something that you still need to negotiate? Thank
Speaker #7: you. Yes.
Um, including, uh, to protect the, uh, the growth of the, the single here in U.S. So, all the points that you, you mentioned relate to the—just the hybrids, or the rationals that, uh, uh, you're also looking at?
and um,
Speaker #2: flow and the industrial free cash flow. So the operating cash flow as shown here, it's IFRS measure. And it does not include CapEx. But it includes the operating performance of the thing primarily in the US.
Also.
those instruments, uh, at the market experience, but we think it's uh, um,
It's a a very competitive instrument and as you said uh competition and other large companies, especially in European, use those those instruments uh at the largest scale. So we think it's uh um a very good uh, instrument to add to
Speaker #2: So that operating drivers, not investments or financing. While the industrial group. And it's basically including free cash flow does not include the finco actives, but includes the investments on the industrial company.
To our depth portfolio.
A very good practice for them to add your event for, for
Thank you.
Thank you.
The next questions come from Tomah bison from Kepler. Your line is open.
The next question, come from.
Speaker #2: So the walk between the it's there is a 1.5 to the 2.5, CapEx of 4.5 and operating from the finco of 5.3. And that is the delta that then an reconciles.
Uh, hi. Good afternoon. It's, uh...
uh,
I'd like to ask you a couple of questions, please, as well. Uh, first, when I look at your, uh, deck on page 7, uh,
I'd like to ask you a couple of questions as well. Uh, will I get you back on page 7? Uh,
Speaker #2: And if you'd like, we can provide the details after the call. But that's the difference between the operating cash flow at group level and the industrial free cash flow as we are reporting here.
Could you please explain to us the difference between your operating cash bar, not about $2.4 billion?
Please explain to us the difference between your operating cash flow—$4 billion.
Speaker #2: On the cash payments, the 6.5, yeah. And on the cash payments, we are in negotiation with the suppliers. We have not closed all the negotiations.
Speaker #2: On the cash payments, the 6.5, yeah. And on the cash payments, we are in negotiation with the suppliers. We have not operating cash flows, it's a view for the The negotiations that we have closed so this payment terms far are aligned with the deal that we have announced today, the 700 million euros that we state to be in four years.
And the industrial free cash flow at $1.5 billion. Uh, can you, uh, isolate the elements that are related to, uh, the bank, uh, and other items that can explain why there isn't a greater, uh, industrial cash? Well,
To the bank, uh, and other items that can explain why there is a better industry. Cash. Well,
And the second question is uh on the uh 6.5 billion, cash portion of the Chargers that you plan to pay over uh the next 4 years.
And the second question is on the $5 billion—the charges you want to pay over 4 years.
Somebody.
Has been agreed with you.
Speaker #2: That is exactly the terms of the transaction that we just closed.
Could you confirm that? It has been agreed, uh, with your suppliers, that this payment can be done over four years, or is it something that you still need to negotiate? Thank you.
Need to negotiate. Thank you.
Speaker #7: Thank you very
Speaker #7: much. The next
Yes, no, thank you for the question. So first on the
Oh, thank you for the question. So, first on the—
Speaker #3: Goldman Sachs. Your line is open.
On the reconciliation between the operating cash flow and the industrial free cash flow. So the operating cash flow as shown here. It's
On the concern here, it's a
a IFRS measure.
Speaker #7: Yeah, hello question. Just three questions from you've announced today, can you any risk to your European operations from increased pricing pressure or what have you is sort of captured in these provisions?
measure.
And, um, it does not include CapEx.
But it includes,
But it includes,
uh, the operating performance of the the think primarily in US
Uh, the operation, primarily in the US.
Speaker #7: That's question one. And question two would be just a detail on the 6.5 billion cash out from your structuring just confirm that activities. It's clear that 5.8 billion comes from the product realignment.
So, that's operating cash flows. It's a view for the group, and it's basically including operating drivers, not investments or financing, while the industrial free cash flow does not include the FinCo activities but includes the investments on the industrial companies. So, um, the walk between the $1.5 to the $2.5—it's...
So that operation, the group and its basically drivers for finance, does not include the investment from the industry. So, um, and we walk $1.5 to $2.58.
Speaker #7: And then you have 0.7 billion from the EV supply chain. What about the 1.3 billion from workforce reductions? How much of that is a cash issue?
Speaker #7: And then lastly, for everyone. And thanks for taking my subsidiary, it was outline already a question on that. But could you just the cash will consume in, I guess, both investment that the finco for 2025 and maybe your thoughts on 2026 where we should assume?
There is a topic of 65 and then uh an operation that is set out to that represents if you would like to provide the details after this as well. But that's that's
Uh, there is a capex of 4.5 and then uh, an an an operating from the think of 5.3 and that is the Delta that uh reconciles. And if you you would like, we can provide the details after the call. But that's that's that's the difference between the operating cash flow at group level and the industrial free cash flow as we are reporting here.
We are recording.
This.
Speaker #7: Thank
Speaker #7: you. Yeah.
Speaker #2: So on the provisions, we have provisioned what we have listed here. Obviously, based on our regular closing process, we're taking consideration risks on the residuals and related items including in the European market.
On the cash payments. Uh, the 6.5. Yeah. And and then the cash payments we uh we are in negotiation with the suppliers. We have not closed. All the negotiations the negotiations that we have closed so far are aligned with this uh uh payment terms condition, including uh the as uh deal that we have announced today, the 700 million euros that we State, you're being 4 years. That is exactly the terms of the transaction that we we just closed.
We have not negotiation—negotiations that we have to do so far. Our line is, is, uh, payment terms transition, including, uh, the—with €100 million that we spent before we just closed.
Thank you very much.
Thank you very much.
Speaker #2: So that is contemplated on there is nothing exceptional for price in Europe. On the 6.5 or the 1.3 billion of restructuring, as you can see on our financials in '24, '25, we continue to have restructuring actions that it's a billion euros.
The next question, come from the line of Christian friend from Goldman Sachs, your line is open.
And the next question comes from the line of Christ. Your line is open.
Yeah, hello everyone. Um, question for me—
Regarding the provisions that you've announced today, can you just confirm if there is any risk from your European operations—from, you know, increased pricing pressure?
Um, or what have you is sort of captured in the uh provisions?
Speaker #2: So the cash out in 2025 was about around about 1.3 billion euros. And we expect a similar amount or slightly less, around a billion euros in 2026.
I thought, question, 1 and question would be just detail on the
Speaker #2: And then the finco especially for you on the full year earnings call.
Speaker #7: Okay. Thank you. And just to be clear, so that's an additional billion than out from restructuring? That we should assume?
Yeah. Hello everyone and thanks for taking my question. Uh, just 3, um, questions from me. Um, regarding the provisions that you've announced today, can you just confirm that any risk to your European operations from you know, increased pricing pressure um or what have you is sort of captured in these uh Provisions. Uh, that's question. 1 and question 2 would be just a detail on the 6 and a half billion cash out from your structuring activities. Uh, it's clear that, you know, 5.8 billion comes from the product realignment and then you have 0.7 billion from the EV supply chain. What about the 1.3 billion from Workforce reductions? How much of that.
Speaker #2: But yes, but that is not a headwind versus 2025. 2026, I'll follow up with It's actually going to be the cash out in restructuring cash out.
Cash out from your structuring activities, uh, fear that, you know, 5.8 billion and then you have supply chain. What about the 1.3 billion from Workforce reduction, which of that is a cache cache issue. And then lastly, for your thinko, finished zero.
Is a cash cash issue. And then lastly, uh, for your Finco—for your financial subsidiary—uh, there was already a question on that, but could you just outline
Sorry, just outline.
Speaker #2: The restructuring 2026, we expect to be slightly lower than 2025. In 2025, it was 1.3, and we are expecting about a billion euros in '26.
The, um, the the cash investment that the finger will consume in I guess both for 2025 and and maybe your thoughts on 2026 where we should assume. Thank you.
The, um, the cash investment that the Shingo will consume, and I guess both for 2025 and maybe your thoughts on 2026, but we should assume—thank you.
Speaker #7: Thank
Speaker #7: you.
yeah, so the um,
Speaker #2: Thank you.
so the, um,
Speaker #3: Question comes from the line of Stephen Reitman from Bernstein. Your line is open. That's clear.
The provisions.
Speaker #8: Reitman from Bernstein in Yes. Good afternoon. Stephen London. My question is about market share in North America or rather in the United States, excuse me.
We're taking consideration Christmas on a different video. And, uh,
Speaker #8: Obviously, after the 8.1% you achieved in the fourth quarter, which was obviously heralded as a sign that things are improving from the lower levels you've seen before, we went down to 7.5% in January, in the United States.
If you like your content, you could get a market. So that's on the, uh, exceptional.
Price in Europe.
Ation of risk is on the residuals and, uh, and its related items, uh, including in the European market. So that is contemplated on the, uh, on our regular closing. But on the provisions, there is nothing exceptional for pricing, Europe, on the 6.5 or the $1.3 billion of U.
Speaker #8: Now, obviously, the weather played a large part in disrupting a large number of the US automakers. What would you your expectation for the market share that you feel comfortable with, or what would be should be able to achieve in the United States in 2026?
The 6.5 for the 1.28.
um,
Um,
restructuring.
um, as you can see on our financials in 2425 we uh we continue to have uh, restructuring actions that it's about uh
structuring, um, we are continuous, we have action that it's about uh
Speaker #8: And could you comment on some of the year suggesting that you were looking at more of a volume strategy, going to put more emphasis on fleet sales as well in order to grow volume?
Speaker #8: newspaper reports that were coming out last
Speaker #8: Thank you very
Speaker #8: much. Oh, thank you.
Speaker #2: Thank you for your question. I will take it. So our market share in the US and in North America is
Uh, around a billion Euro. So uh the cash out in 2025 was about 1.3 billion euros and we expect a similar amount or a slightly less. So around a billion euros in in 2026, and then the finco, uh, especially for 2026. So I'll follow up with you on the, uh, full year earnings call.
Around here. So uh fresh 1666 follow up on the uh 2 year earnings call.
Speaker #2: overall growing January '25 against January '24, growing in all the segment and the channels that includes US retail, US fleet, Canada, and Mexico. It's also growing in January '25 versus December '24 if we consider US retail only.
and then out,
Okay, thank you. And just to be clear, so that's and then an additional billion out from restructuring that we should assume?
Structure. So we should have seen—I mean,
It is not a headline test for 2025.
Speaker #2: So US retail is growing. What is not growing is fleet. When we compare December with January, and this is because basically seasonality of our production.
But yes, but that is—uh—it is not a headwind versus 2025. It is actually going to be the infrastructure we carry out. The restructuring is cash out in 2026. We expect it to be slightly lower than 2025. In 2025 it was $1.3 billion, and we are expecting about $1 billion in 2026, okay? That's clear. Thank you.
2020, 65 to go again. Okay, here. Thank you.
Thank you. Question comes from the line of Steven wrightman from Bernstein. Your line is open.
Speaker #2: So we usually plan our plans to ramp up in January and the beginning of February and then go full production starting from second half of February and going forward.
Questions on the line are open.
Yes.
Speaker #2: And obviously, on that, we limit our supply of fleet volumes. In quarter four, we grew, as you saw. And US retail is still growing in January.
Yes, uh, good, good afternoon, Steve, Rob from Bernstein in London. Um, my question is about market share in North America or rather in the United States. Excuse me. Um, obviously after the 8.1% you achieved in the fourth quarter, which was obviously heralded, as a sign that things improving from the lower levels you've seen before.
Excuse me. Um, before
Speaker #2: So our market share in '26 will grow in those numbers, neither in quarter four numbers nor in January there is a significant impact of the new products.
Speaker #2: That will become significant starting from March just was want to remember that the new products are the Jeep Cherokee produced in Mexico. So there is a lead time to get to the US retail stores.
We went down to 7.5% in January in the United States. Was the makers. How would you feel achieved in the United States?
Speaker #2: So our dealer network, that will start showing up in March. And also, a new product which is the Dodge Charger that is produced in Canada.
We went down to 7.5% in January in the United States. Now, obviously, the weather played a large part in disrupting a large number of the US automakers. What would you feel comfortable with, or what would be your expectations for the market share that you should be able to achieve in the United States in 2026? And could you comment on some of the newspaper reports that were coming out last year suggesting that, uh, that you were looking at more of a volume strategy—going to put more emphasis on fleet sales as well in order to grow volume? Thank you very much.
Thank you very much.
Oh, thank you. Thank you for your question. I will take it.
For your question. I will take it.
Speaker #2: This will start to show up in our dealer lots starting from second half of February. But again, our firm trust is that the new products and the additional performance in US retail and fleet will lead us growing in market share in US and in North America.
So, our market share in North America.
January.
24th going in all the channels that you put retail.
So our market share in the US and in North America is overall growing January 25th, against January 24th, growing in all the, the segment and the channels that includes the US retail us Fleet, Canada and Mexico.
By split Canada, Mexico.
Speaker #2: Thank you very much.
Speaker #3: The next question comes from the you.
Is also growing in January, 25 versus December 24. If we consider us retail only,
Speaker #3: line of Tom Narayan from RBC. Your line is Thank open.
Blowing in generate, 254 only.
So us retail is growing.
Is growing.
Speaker #9: Hi, Antonio. Joao Ed. Thanks for taking the questions, Tom RBC. First question on brands. I didn't see any commentary on brand rationalization. It seems like the idea is to keep all the brands intact as you have.
what is not growing is Fleet when we compare December with January, and this is because, basically seasonality of our production,
But it's not growing is free January. And it is, it was basically internality of our production.
Speaker #9: And it's just a follow-up on that. The Jeep Cherokee, you mentioned the market for that in the US, 3 million cars. We haven't really seen much volumes yet on that.
We usually when our plans to ramp up January and beginning of February and then go through for the afternoon.
Going forward.
so we usually plan our plans to ramp up in January and the beginning of February, and then go full production, starting from second half of February, and going forward, and obviously on that we limit our supply of Fleet volumes,
Probably on that. We need our supply with volumes.
Speaker #9: Just curious if maybe there's some supply issues related there or strategy there. And then if I could just squeeze in an accounting item, given the charges today, can we expect an improvement on DNA for 2026?
Uh, in Q4, we grew, as you saw, and U.S. retail is still growing in January, so our market share in '26 will grow.
Where we grew as you saw and you still grow in January our Market with grow.
Speaker #9: Thank you.
Speaker #2: Okay. Thank you for your question. I will take the first answers, and then I will leave Joao to the charges answer. So Jeep Cherokee has been launched in production in December last year.
In those numbers, neither is working for numbers. Nor in January, there is significant impact new products that will become significant from March.
In those numbers, neither in quarter 4 numbers. Nor in January, there is a significant impact of the new products that will become significant starting from March. I just was, I just want to remember that.
Remember that?
New products are used in Mexico. There is a lead time to get to the US.
Retail stores. Our dinner Network.
Speaker #2: That recovering past delay from the past years. And it's coming now to the dealer lots by March. Again, the production site of Jeep Cherokee is Toluca in Mexico.
The new products are the Jeep Cherokee produced in Mexico. So there is a lead time to get to the US, uh, retail stores. So our dealer Network that will up will start showing up in March and also we a new product, which is the door charger that is producing in Canada. This will start to show up in our dealer Lots, starting from second half of February, but again,
Our firm.
That will be up in March, and also you called out that it is not Chargers. That is produced in Canada. This will start to show up in our second, but again, our firm...
Speaker #2: So there is a logistic lead time to get to our US dealer network. You will see Jeep Cherokee starting being visible in the dealer lot in March, starting accelerate deliveries of this fantastic car to our consumers starting from March.
Firm trust is that the new products and the additional performance in U.S. retail and Fleet will lead us growing in market sharing U.S. and in North America. Thank you very much.
trust is that new product and the additional performance complete we need a growing us and in North America. Thank you very much.
Thank you.
Thank you.
The next question comes from the line of Tom Narayan from OBC. Your line is open.
Speaker #2: This is the major lever of our market share growth and recovery. On the charge, Joao?
Next question comes from the line from OBC. Your line is open.
Speaker #1: Yeah. On the depreciation, we expect to see a benefit of about 250 million euros of lower depreciation amortization versus 2025 driven by the adjustments that we are announcing
Speaker #1: today. Okay.
Speaker #9: And then on the brands, you're okay with all the
Speaker #9: brands? Oh,
Speaker #2: yeah. So brand portfolio is something that we are working a lot on top of it. We are very proud of our brands. They represent iconic brands for our consumers.
Speaker #2: If you imagine there is no more iconic brand in the US than Jeep, RAM, Dodge Chrysler, and we are very many iconic brands in Europe, such as Fiat, Peugeot, Citroën, Opel, Alfa Romeo, and the others.
I didn't see any commentary on brand rationalization, it seems like the the idea is to keep, you know, all the brands intact as you have. And it's just a follow-up on that, the Jeep Cherokee you mentioned. The, the market for that, in the US 3 million cars, we haven't really seen much of volumes yet on that. Just curious, if maybe there's some supply issues related there or strategy there. And then, if I could just squeeze in an accounting item, um, given the, uh, charges today. Can we can we expect in an improvement on DNA, uh, for 2026. Thank you.
The charges today. Can we expect on DNA up to 2026? Thank you.
Okay, thank you for your question. I will take the first answer and then I will leave draw out to the Chargers sensor.
Okay.
So, uh,
Uh,
Speaker #2: Obviously, we have an investor day already scheduled for May 21st this year. We will be more than delighted to share with you all the important considerations that we have for our business plan around our brand portfolio for our future.
in production in September.
Last year.
Jeep Cherokee has been a launched in production in December. Last year that recovering a past to delay from the, uh, the past years.
From the last years.
Uh, and it's coming now to the dealer, Lots by March.
Speaker #2: Thank you very
Speaker #2: much. Thank
Speaker #3: The next you. question comes from the line of Martino de Ambroghi from Equita. Your line is
Speaker #3: open. Yeah.
Again, the production—the production site of Jeep Cherokee is Toluca, in Mexico. So there is a logistic lead time to get to our US dealer network.
And it's coming. Now the real lot by March again the production Logistics need time to get to our us dealer Network.
Speaker #10: Thank you. Thank you very much for taking my question. On free cash flow, my focus on in 2026, it will be probably negative excluding well, including the 2 billion cash out related to extraordinary charges.
You will see invisible March.
Speaker #10: If we could be positive and follow up on the free cash flow. What exclude the extraordinary charges, are the main components in terms of CapEx networking capital and your assumptions?
You will see Jeep Cherokee starting being visible in the dealer lot in March, starting to accelerate, deliveries of this fantastic car to our consumers starting from March. This is the major lever of our market share growth and recovery on the charge as well. Yeah. On the, um, on the depreciation we expect to see a benefit.
Deliveries of this fantastic to our consumers, starting from this group and we expect their benefit.
Speaker #10: Thank
Speaker #10: you.
Speaker #1: Okay. No, thank you. Well, the own investments first, I'll address the second part of your question. So thinking about the 2026 free cash
Of about €250 million of lower depreciation, amortization, verse, 2025, uh, driven by the adjustments that we are announcing today.
Of €250 million as appreciation. Five that we are announcing today.
Okay? And and around the brands, you're okay with all the brands.
The brand you're pay with all the brands.
Speaker #1: flow, we are expecting investment to be very similar to 2025. And we also expect working capital to have a similar performance despite the 2 billion euros payments because of higher volumes and also more efficient on inventories and then some tariff credits that we are going to collect in 2026.
Oh yeah.
Oh yeah.
So, brand portfolio is exactly that. We are working a lot on top of it. We are very proud of our brand; they represent iconic for our consumers.
Imagine, there is no more iconic.
Uh, so brand portfolio is is something that we are working a lot on top of it. We are very proud of Our Brands. They represent iconic brands for our consumers. If you imagine, there is no more iconic brand in the US than Jeep Ram. Dojo Chrysler. And we are building many iconic brands in Europe, such as Fiat, poor Citra and Opel, Alfa Romeo, and the others.
Speaker #1: your question about the results of free So to cash flow in 2026, we'll be primarily correlated or very close correlated to the improvement in AOI.
We are pretty many, many others.
obviously, we have
Speaker #1: So on the AOI at the beginning of the call, I provide the key drivers for the improvement in 2026. So we expect to all the improvements that we see in AOI in '26 versus '25 to flow through the cash flow.
Uh, obviously we have an event investor, they already scheduled for May 21st this year. We will be more than delighted to share with you all the important considerations that we have for our business plan, around our brand portfolio for our future. Thank you very much.
The schedule for me to share with you all important information that we have for our business plan, around our bed portfolio for our future. Thank you very much.
Thank you.
Thank you.
The next question comes from the line.
The next question comes from the line of Martino the ambrogi from equita. Your line is open,
Is open.
Speaker #10: Okay. But excluding the 2 billion extraordinary cash out, could be
Speaker #10: positive? It will depend on the improvement
Speaker #2: of the AOI in
Speaker #2: 2026. Okay.
Thank you. Thank you very much. My focus on, um, in 2026, probably negative charges.
Speaker #10: Thank you, Joao.
Speaker #3: The next.
Speaker #1: Thank you.
Speaker #3: the line of Question comes from Michael Foundoukidis from OdoBHF. Your line is
Speaker #3: open. Yes.
Yeah, thank you. Thank you very much for taking my question. Um on free cash flow. My focus on um in 2026 uh will be probably negative excluding well including the 2 billion Cash Out related to extraordinary charges. Uh if we exclude the extraordinary charges could be positive and uh follow up on the free cash flow. What are the main components in terms of capex, networking capital and your assumptions. Thank you.
If we exclude charges could be positive and cash flow. What are the main components in terms of efforts in working capital assumptions? Thank you.
Speaker #1: Hi. Two questions on my side remaining. So intense competitive environment in Europe. Yet at the same time, you highlighted that order intake improved meaningfully in H2, which should be reassuring.
Okay. Now, thank you. Well, the, uh,
Thank you.
The only Investments. First of all.
so,
Uh, um.
um,
Speaker #1: However, as recently as last week, we also heard from European teams at Stellantis that they intend to adopt a much more aggressive pricing strategy to regain lost market share.
Addressing the second part of your question—so, thinking about the 2026 free cash flow, we are expecting investment to be very similar to
So, in terms of the 2017-2016 cricket, you know, we expect it to be very similar to—
2025.
2025.
Speaker #1: So could you help us reconcile these two points and indicate whether you believe that Europe can realistically return to profitability at some point in 2026 or whether 2027 is a more plausible timeline?
Speaker #1: And maybe second one, very quick, could you tell us if you expect at the AOI level already from to be back in positive territory Q1, as you will report quite early earnings from now on?
And we also expect, uh, a working capital to have a similar performance despite the the 2 billion euros payments because of uh, higher volumes, and also more efficient on on inventories and then some tariff credits that uh we are going to going to collect in 2020.
We also expect it should be higher. That, uh, we are going to go back to 2020.
Speaker #1: Thank
Speaker #1: you. Okay.
Speaker #2: So first on the second question, we expect to be profitable at groupal level through fall before, we are seeing a lot of competitive pressure in Europe.
Uh, 2026. So, uh, to your question about the results of free cash flow in 2026 will be primarily correlated of very close correlated to the uh,
20206. So, um, your question about that—it was primarily for the late, very close correlation between the, uh...
Aoi. So
to the Improvement in aoi. So, um, and uh, on the aoi at the beginning of the call, I, I, I provide the
The aoi, the unit to call. Like I provide the
Speaker #2: So in our forecast for 2026. As I mentioned 2026, we expect some headwind on today specific forecasts by region. positive momentum as we start the year But as you mentioned, we see a lot of with the market share in Europe.
The 2 drivers for the Improvement in 2026. So we expect to
The key drivers for the improvement in 2026—so we expect to, uh, all the improvements that we see, uh, in AOI in '26 versus '25 to flow through to the cash flow.
All the incident that cash flow.
Okay, but excluding the 2 billion extraordinary shout uh could be positive.
Positive.
Speaker #2: Do you want to comment? No, just reassuring that we will be profitable as a group throughout all 2026. This is exactly what we will do this year.
Euro will depend on the Improvement of the oi in 2026.
You don't it depends on the Improvement rate in 2026.
Thank you.
Thank you.
Speaker #1: Thank
Speaker #1: you. The
Speaker #3: next question comes from the line Bank of America. Your line is
2020. Thank you. Question comes from the line of Michael F dittus from oddo bhf. Your line is open
Your line is open.
Speaker #11: Thank you. My question on Europe has
Speaker #11: Thank you. My question on Europe has of Horst Schneider from open. just been asked. So therefore, I just have got one large question left.
Speaker #11: I'm not sure if you want to debate that also at the capital markets day in May, but Antonio from your perspective, what are there still any synergies left between Europe and North America?
Speaker #11: So put it in a different way. Is there maybe a debate at some point if Stellantis should break up so that there should be Stellantis North America where the profit pool is the highest where you have got now where you can do as many ICE world, you still have got more EV regulation engines as you want and in the rest of the maybe that entity should stay together?
Speaker #11: What do you think about this way of
Yes. Hi, two questions on my side remaining. So Joe, earlier you mentioned the very intense competitive environment in Europe. Yet at the same time, you highlighted that other intact improved meaningfully in H2, which should be reassuring. However, as recently as last week, we also heard from European teams at the Montes that they intend to adopt a much more aggressive pricing strategy to regain lost market share. So, could you help us reconcile these two points and indicate whether you believe that Europe can realistically return to profitability at some point in 2026, or whether 2027 is the more plausible timeline? And maybe the second one—very quick—could you tell us if you expect to be back in positive territory at the AOI level already from Q1, as you will report quite earlier earnings from now on? Thank you.
Speaker #11: thought? No, thank you for that question.
Thank you.
Speaker #2: So there is no doubt that Stellantis make a lot of sense being a very strong global company proud to have a very strong regional roots.
We expect to be profitable.
Okay, so, uh, first, on the second question, we expect to be profitable at Group 11 through 5 to 2026.
uh,
We are seeing.
Speaker #2: all the region will enjoy So globally, of a global development of global platform, of global architecture electric electronic modules, a global powertrain. And we will do that globally by interacting architecture, global globally with global suppliers.
A lot of, uh, in Europe. So you are, uh,
As I mentioned before, we are seeing uh a lot of uh competitive pressure in Europe. So in our uh forecast for 2026, we expect some headwind on pricing in Europe. We're not going to comment today. Uh, this specific forecasts by region. Uh, but uh, as you mentioned, we see a lot of positive momentum as we start the EO.
With the market share in Europe.
Speaker #2: What stays regional and local is the go-to-market, right? So what we have done in our organization by regionalizing it is to have those global asset develop globally with global partners and making sure that at a regional level, leaner regional teams are able specific consumer demand and specific geographical regulation in the proper way.
In Europe, we're not going to come in today, uh, region. Uh, but as you mentioned, a lot of problems.
Can you—do you want to comment now, just reassuring that we will be profitable as a group throughout all of 2026? This is exactly what we will do this year.
That we will be talking about what we will do this year.
Thank you.
Thank you.
The next question comes from the line of Schneider from Bank of America in your line is open.
The next question, on the line of Schneider South America, your line is open.
Speaker #2: This is how we want to leverage our to address global synergies that are mainly technical and of supplier base with our regional go-to-market tactics.
In May.
Uh thank you. My question on Europe has just been asked so therefore uh I just have got 1 uh large question left. I'm not sure if you want to debate that also at the capital markets day in May. But uh Antonio from your perspective, what I know is are there still any synergies left?
But Antonio.
Speaker #2: Thank you very
Speaker #2: much. As a follow-up then
In Europe, North America. So
Between Europe uh and North America. Um so put it in a different way.
Speaker #11: maybe, since you just restructured largely Europe, I'm not sure. Is there other planned closures in Europe on the agenda? And why you don't restructure also North America because if I get it right, there's also larger amount of overcapacity?
Speaker #2: Well, this strategic reset comes with a strategy of business growth. That is why we are investing. We are investing 13 billion dollars in our US brands, in the next four years, for Jeep, RAM, Dodge, and plants.
Speaker #2: And we are investing in Europe by launching many of the Chrysler, and for all our US 10 all-new products that we launched for instance in H2.
Speaker #2: course, our business is a business of efficiency as Then, of well. And we will take a very close care to industrial efficiency as well.
Antonio Filosa: Stays regional and local is the go-to-market, right? So what we have done in our organization by regionalizing it is to have those global asset develop globally with global partners, and making sure that at a regional level, leaner regional teams are able to address specific consumer demand and specific geographical regulation in the proper way. This is how we wanna leverage our global synergies that are mainly technical and of supplier base with our regional go-to-market tactics. Thank you very much.
Antonio Filosa: Stays regional and local is the go-to-market, right? So what we have done in our organization by regionalizing it is to have those global asset develop globally with global partners, and making sure that at a regional level, leaner regional teams are able to address specific consumer demand and specific geographical regulation in the proper way. This is how we wanna leverage our global synergies that are mainly technical and of supplier base with our regional go-to-market tactics. Thank you very much.
Speaker #2: And for all of that, and for all the consideration that we might have, I suggest you to join us in day May 21st,
Today's regional and local is to go to market, right? So what we have done in our organization, by regional, analyzing it,
Speaker #2: 2026. Thank you very much.
Speaker #11: Of course, I will do that. Thank
Speaker #2: you.
Speaker #3: The next question comes from the line of Henning Kosman from
It's to have those global assets develop globally with global partners, and making sure that, at the regional level,
Speaker #3: Barclays. Your line is
Speaker #3: open.
Leaner Regional teams are able to address.
Speaker #12: Yeah. Hi. Good afternoon. Thank you for
Speaker #12: taking the question. I wonder if we could talk a bit about
Specific consumer demand and specific geographical regulation in the proper way.
Speaker #12: by region. Is it possible to indicate a bit if you did achieve profitability in North America? I you. think that's something that was contemplated by the previous management, I believe, your team, your current team hasn't entertained that anymore.
This is how we want to leverage our Global synergies that are mainly, Technical and of supplier base with our regional, go to market tactics.
Thank you very much.
[Analyst]: As a follow-up, then maybe, since you just restructure largely Europe, I'm not sure, are there plant closures in Europe on the agenda? And why you don't restructure also North America? Because if I get it right, there's also larger amount of overcapacity.
[Analyst]: As a follow-up, then maybe, since you just restructure largely Europe, I'm not sure, are there plant closures in Europe on the agenda? And why you don't restructure also North America? Because if I get it right, there's also larger amount of overcapacity.
Speaker #12: But I think it's quite important to understand as a starting point to extrapolate from to your point, Antonio, the shipments were already up almost 40%, mix was improved.
As a follow-up then, maybe—since you just restructured largely Europe, I'm not sure—is there other plant closures in Europe on the agenda? And why don't you restructure also North America? Because if I get it right, there is also a larger amount of overcapacity.
Speaker #12: Albeit not with the run rate perhaps of the Hemis that we are going to see, but it was pretty strong. So I'd be really interested to hear even if just directionally if that made it into the positive territory.
Antonio Filosa: Well, this strategic reset comes with a strategy of business growth. That is why we are investing. We are investing $13 billion in our US brands in the next four years for Jeep, Ram, Dodge, and Chrysler, and for all our US plants. We are investing in Europe by launching many of the 10 all-new products that we launched, for instance, in H2. Then, of course, our business is a business of efficiency as well. We will take a very close care to industrial efficiency as well. For all of that, and for all the consideration that we might have, I suggest you to join us in our Investor Day, 21 May 2026. Thank you very much.
Antonio Filosa: Well, this strategic reset comes with a strategy of business growth. That is why we are investing. We are investing $13 billion in our US brands in the next four years for Jeep, Ram, Dodge, and Chrysler, and for all our US plants. We are investing in Europe by launching many of the 10 all-new products that we launched, for instance, in H2. Then, of course, our business is a business of efficiency as well. We will take a very close care to industrial efficiency as well. For all of that, and for all the consideration that we might have, I suggest you to join us in our Investor Day, 21 May 2026. Thank you very much.
Well, these strategic resets come with a strategy of business growth.
Speaker #12: And going forward, the white space product, the most two important ones, the Cherokee and the Charger, of course, coming from Mexico and Canada, which currently still have the very large tariffs.
That is why we are investing. We are investing in 13 billion dollars in our us brands, in the next 4 years, for Jeep Ram, Dodge, and Chrysler, and for all our us plans, and we are investing in Europe by launching. Many of the 10, all new products that we launched, for instance,
Speaker #12: So if you could perhaps speak about the unit margins of these products or the unit economics considering these tariffs and if that's perhaps the reason that the profitability increase or the margin accretion despite the revenue increase is perhaps a bit more great.
In in H2.
Then, of course, our business is a business of efficiency as well, and we will take very close care to industrial efficiency as well. And for all of that, for all the consideration that we might have, I suggest you join us in our Investor Day, May 21, 2026.
Speaker #12: Thank you so modest. That'd be much.
[Analyst]: Of course, I will do that. Thank you.
[Analyst]: Of course, I will do that. Thank you.
Thank you very much. Of course I will do that.
Speaker #2: Okay. I will take some part of this questions, and thank you for that. And then I will leave Joao answering on the regional view and the other aspect of the same question.
Operator: The next question-
Operator: The next question-
Antonio Filosa: Thank you.
Antonio Filosa: Thank you.
Operator: The next question comes from the line of Henning Cosman from Barclays. Your line is open.
Operator: The next question comes from the line of Henning Cosman from Barclays. Your line is open.
The next question. Thank you. The next question comes from the line of handing customer from blay. Your line is open.
Speaker #2: So what is happening in '26 is that we are delivering to our execution very strong foundation to grow. And I'll tell you some numbers, just reminding all of that.
Henning Cosman: Yeah. Hi, good afternoon. Thank you for taking the question. I wonder if we could talk a bit about the H2 performance by region. Is it possible to indicate a bit if you did achieve profitability in North America? I think that's something that was contemplated by the previous management. I believe your team, your current team, hasn't entertained that anymore, but I think it's quite important to understand as a starting point to extrapolate from, to your point, Antonio, the shipments were already up almost 40%, mix was improved, albeit not with the run rate, perhaps, of the HEMIs that we are going to see, but it was pretty strong.
Henning Cosman: Yeah. Hi, good afternoon. Thank you for taking the question. I wonder if we could talk a bit about the H2 performance by region. Is it possible to indicate a bit if you did achieve profitability in North America? I think that's something that was contemplated by the previous management. I believe your team, your current team, hasn't entertained that anymore, but I think it's quite important to understand as a starting point to extrapolate from, to your point, Antonio, the shipments were already up almost 40%, mix was improved, albeit not with the run rate, perhaps, of the HEMIs that we are going to see, but it was pretty strong.
Yeah, hi, good afternoon. Thank you for taking the question. Um, I wonder if we could talk a bit about, um,
Speaker #2: Our shipments are already growing. 11% H225 versus H224. Our order book in North America, as you mentioned, grew 150% year over year. And our market share is growing including in January against January last year in all channels, including January against December last year, in US retail, which is the most profitable one.
Speaker #2: The new products that will make are many. One of some of them are produced out of US. So they pay tariffs. This is Jeep, Cherokee case, and also Dodge Charger case but we have strong mix adjustments and also we have strong cost efficiencies that we are implementing to us accelerating growing those.
Henning Cosman: So I'd be really interested to hear, even if just directionally, if that made it into the positive territory. And going forward, the wide space product, the two most important ones, the Cherokee and the Charger, of course, coming from Mexico and Canada, which still currently have the very large tariff. So if you could perhaps speak about the unit margins of these products or the unit economics, considering these tariffs, and if that's perhaps the reason that the profitability increase or the margin accretion, despite the revenue increase, is perhaps a bit more modest. That'd be great. Thank you so much.
Henning Cosman: So I'd be really interested to hear, even if just directionally, if that made it into the positive territory. And going forward, the wide space product, the two most important ones, the Cherokee and the Charger, of course, coming from Mexico and Canada, which still currently have the very large tariff. So if you could perhaps speak about the unit margins of these products or the unit economics, considering these tariffs, and if that's perhaps the reason that the profitability increase or the margin accretion, despite the revenue increase, is perhaps a bit more modest. That'd be great. Thank you so much.
the H2 performance by region. Um, is it possible to indicate a bit if you did achieve profitability in North America? I think that's something that was, um, contemplated by the, by the previous management. I believe your team, your current team hasn't entertained that anymore, but um, I think it's quite important to understand as a as a starting point to extrapolate from um, to your point Antonio, the the shipments were already up. Almost 40%, mix was improved um albeit. Not with the the Run rate per perhaps of the hemis that we are going to see, but it was pretty strong so I I'd be really interested to hear even if just um,
Speaker #2: Others mainly in the numbers are the ones that are produced in US. So we are launching Jeep Grand Wagoneer, which is very profitable to plant in Warren.
Speaker #2: us, out of our Michigan We are increasing a lot RAM 1500 '26, we estimate close to 100,000 units produced and sold more. And this is big profit to us.
Uh directionally if uh, if if that made it into the uh into the positive territory. And um going forward, um the the white space product, the most too important ones, the Cherokee, and the charger, of course, coming from from Mexico and Canada, which currently still have the, the very large tariffs. So, if you could, perhaps speak about the, the unit, margins of these products, or the unit economics, um, considering these these tariffs. And if, that's perhaps, the reason that, um, the profitability, um, increase or the, the the margin accretion despite the, the revenue increases is is perhaps a bit more modest. Um, that'd be great. Thank you so much.
Antonio Filosa: Okay, I will take some part of these questions, and thank you for that. Then I will leave João answering on the regional view and the other aspects of the same question. So what is happening in 2026 is that we are delivering to our execution very strong foundation to grow. I'll tell you some numbers, just reminding all of that. Our shipments are already growing 11%, H2 2025 versus H2 2024. Our order book in North America, as you mentioned, grew 150% year over year. Our market share is growing, including in January against January last year in all channels, including January against December last year in US retail, which is the most profitable one. The new products that will make us accelerating growing are many.
Antonio Filosa: Okay, I will take some part of these questions, and thank you for that. Then I will leave João answering on the regional view and the other aspects of the same question. So what is happening in 2026 is that we are delivering to our execution very strong foundation to grow. I'll tell you some numbers, just reminding all of that. Our shipments are already growing 11%, H2 2025 versus H2 2024. Our order book in North America, as you mentioned, grew 150% year over year. Our market share is growing, including in January against January last year in all channels, including January against December last year in US retail, which is the most profitable one. The new products that will make us accelerating growing are many.
Speaker #2: So we have a very important mix lever to activate to accelerate our profitability growth. And then on the regional
Okay, I will take some part of these questions and thank you for that. And then I will leave uh, Joe answering on the regional View and the other aspect of the same question,
Speaker #2: view, please, Joao.
Speaker #11: Yeah.
Speaker #11: And Henning, I appreciate very much your question. And obviously, it's an important point. But we are planning to talk about the regional results on our call in February, '26.
So what is happening in '26 is that we are delivering to our execution a very strong foundation to grow. And I'll tell you some numbers, just reminding all of that. Our shipments are already growing.
Speaker #11: So if we can wait by then to provide you all the necessary information and keep drive by region, we would appreciate it. So thank
Speaker #11: you. Thank you
Speaker #2: Thank you. The next
Speaker #12: both.
Speaker #3: question comes from the line of Stuart Pearson from Oxcap Analytics. Your line is open.
Speaker #13: Yeah. Thank you for taking my questions. A couple of quick ones to finish up on. The warranty side, obviously, one of the big buckets of provisions that you've booked.
11% h225 versus H2 24. Our order book in North America, as you mentioned grew, 150% year-over-year and our market share is growing including in January against January last year in all Channel, including January against December last year, in US retail, which is the most profitable 1
Antonio Filosa: One or some of them are produced out of US, so they pay tariffs. This is Jeep Cherokee case and also Dodge Charger case. But we have strong mix adjustments, and also we have strong cost efficiencies that we are implementing to have profitability out of those. Others, mainly, in the, in the numbers, are the ones that are produced in US. So we are launching Jeep Grand Wagoneer, which is very profitable to us, out of our Michigan plant in Warren. We are increasing a lot Ram 1500 HEMI production. In 2026, we estimate close to 100,000 units produced and sell, sold more. It is a big profit to us. So we have a very important mix lever to activate to accelerate our profitability growth. And then on the regional view, please, João.
Antonio Filosa: One or some of them are produced out of US, so they pay tariffs. This is Jeep Cherokee case and also Dodge Charger case. But we have strong mix adjustments, and also we have strong cost efficiencies that we are implementing to have profitability out of those. Others, mainly, in the, in the numbers, are the ones that are produced in US. So we are launching Jeep Grand Wagoneer, which is very profitable to us, out of our Michigan plant in Warren. We are increasing a lot Ram 1500 HEMI production. In 2026, we estimate close to 100,000 units produced and sell, sold more. It is a big profit to us. So we have a very important mix lever to activate to accelerate our profitability growth. And then on the regional view, please, João.
The new products that will make us, uh, as trading, growing are many.
Speaker #13: But the spending hasn't really gone up that much year on year. I think 6.2 up to 6.4. And I '25 itself were around 7.6 think the provisions you put through for billion, so around 1.2 billion ahead.
One or some of them are produced out of the U.S., so they pay tariffs. This is the Jeep Cherokee case and also the Charger case, but—
Speaker #13: So I mean, what are you seeing on that rate of warranty cash going out of the door in the last quarter or so? Is that starting to stabilize?
Speaker #13: Are you expecting that to carry on increasing in 2026 and into '27? I just wonder whether that gap between what you're provisioning and what's going out the door has some space for narrow because you seem to have produced quite a lot for that and you're balance sheet provision looks similar to your business now.
Speaker #13: And then have a quick question just on the capacity side. A few people have already touched on that. I just wonder other than closing, there's other options we're seeing the Chinese OEMs reportedly looking to partner with incumbents and obviously Geely and Ford.
Are the ones that are produced in the US, so we are launching Jeep Grand Wagoneer, which is very profitable to us out of our missing and plan in Warren. We are increasing a lot. Ram 1500, hemi production in 26, we estimate
Speaker #13: One speculated route there. I mean, what are your thoughts on those kind of partnerships, the pros and cons of that? Obviously, you have the international JV with Leap Motor.
[Company Representative] (Stellantis N.V.): Yeah. And, Henning, I appreciate very much your question, and, obviously, it's a, it's an important point. But we are planning to talk about the regional results on our call on 26 February. So, if we can wait by then to provide you the, all the necessary information, and key drivers by region, we would appreciate. So thank you.
[Company Representative] (Stellantis N.V.): Yeah. And, Henning, I appreciate very much your question, and, obviously, it's a, it's an important point. But we are planning to talk about the regional results on our call on 26 February. So, if we can wait by then to provide you the, all the necessary information, and key drivers by region, we would appreciate. So thank you.
Speaker #13: Could you expand that structure a little bit? Is it impossible in any region, not just Europe, that we see you do something more in terms of where plants sit within your different legal entities when we get to the CMD?
Speaker #13: Thank
Close to 100,000 units produced and sold more. It is this big profit to us. So, we have a very important mix lever to activate to accelerate our profitability growth. And then on the original view, please, Joel and uh, honey, I appreciate very much your question and, uh, obviously it's, uh, it's an important point. But we are planning to talk about the original results on our call on February 26th. So if we can wait by then to provide you all the necessary information,
Speaker #2: Okay. Thank you for your question. I will answer a couple of aspects of your question. And then I will leave Joao talking about the warranty spend.
Uh, in kid drives by region. We would appreciate. So thank you.
Antonio Filosa: Thank you.
Antonio Filosa: Thank you.
Henning Cosman: Thank you, both.
Henning Cosman: Thank you, both.
Thank you. Thank you both.
Operator: The next question comes from the line of Stuart Pearson from Exane BNP Paribas. Your line is open.
Operator: The next question comes from the line of Stuart Pearson from Oxcap Analytics e BNP Paribas. Your line is open.
Speaker #2: So before talking of warranty spend, which is very important, I want to talk on product quality. We have refocused our industrial team in improving our product quality dramatically.
The next question comes from the line of Stuart Pearson from oxcap analytics. Your line is open.
Stuart Pearson: ... Yeah, thank you for taking my questions. A couple of quick ones to finish up on. The warranty side, obviously one of the big buckets of provisions that you've booked, but the spending hasn't really gone up that much, year on year, I think 6.2 up to 6.4. And I think the provisions you put through for 2025 itself are around EUR 7.6 billion, so around EUR 1.2 billion ahead. So, I mean, what are you seeing on that rate of warranty sort of cash going out of the door, in the last quarter or so? Is that starting to stabilize, or are you expecting that to carry on increasing in 2026 and into 2027?
Stuart Pearson: ... Yeah, thank you for taking my questions. A couple of quick ones to finish up on. The warranty side, obviously one of the big buckets of provisions that you've booked, but the spending hasn't really gone up that much, year on year, I think 6.2 up to 6.4. And I think the provisions you put through for 2025 itself are around EUR 7.6 billion, so around EUR 1.2 billion ahead. So, I mean, what are you seeing on that rate of warranty sort of cash going out of the door, in the last quarter or so? Is that starting to stabilize, or are you expecting that to carry on increasing in 2026 and into 2027?
Speaker #2: And we are achieving that. We have recruited more than 2,000 engineers mainly in North America to support both quality improvements and time-to-market improvements. And this is working.
Speaker #2: The early indicators of quality in our business is the one muffin service. In 2025, since we started this new level of execution, we improved one month in services on our product by more than 50% in North America by more than 30% in Europe.
Yeah, thank you for taking my questions. A couple of quick ones to finish up on the warranty side. Obviously, one of the big buckets of provisions that you've booked, but the spending hasn't really gone up that much year on year. I think $6.2 billion, up to $6.4 billion, and I think the provisions you put through for '25 itself were around $7.6 billion, right?
Stuart Pearson: I just wonder whether that gap between what you're provisioning and what's going out the door, you know, has some space to narrow, because you seem to-
Stuart Pearson: I just wonder whether that gap between what you're provisioning and what's going out the door, you know, has some space to narrow, because you seem to-
Antonio Filosa: Yeah
Antonio Filosa: Yeah
Stuart Pearson: -provide quite a lot for that, and your balance sheet provision looks similar to your biz now. And then I have a quick question just on the capacity side. A few people have rightly touched on that. I just wondered, other than closing, there's other options. We're seeing the Chinese OEMs, they're reportedly looking to partner with incumbents and obviously, Geely and Ford, one speculated route there. I mean, what are your or your thoughts on those kind of partnerships, the pros and cons of that? Obviously, you have the international JV with Leapmotor. Could you expand that structure a little bit? Is it impossible in any region, not just Europe, that we see you do something more in terms of where plants sit within your different, I guess, legal entities, when we get to the CMD? Thank you.
Stuart Pearson: -provide quite a lot for that, and your balance sheet provision looks similar to your biz now. And then I have a quick question just on the capacity side. A few people have rightly touched on that. I just wondered, other than closing, there's other options. We're seeing the Chinese OEMs, they're reportedly looking to partner with incumbents and obviously, Geely and Ford, one speculated route there. I mean, what are your or your thoughts on those kind of partnerships, the pros and cons of that? Obviously, you have the international JV with Leapmotor. Could you expand that structure a little bit? Is it impossible in any region, not just Europe, that we see you do something more in terms of where plants sit within your different, I guess, legal entities, when we get to the CMD? Thank you.
Speaker #2: So quality is improving and will improve further. And to Joao. On the capacity question that you just asked, well, we read the declaration of Ford CEO on proposal of capacity sharing with Geely.
Speaker #2: Actually, we were pioneering that because with Motor, through Leap Motor International and through our network of distribution in Europe in South America and the Middle East and Africa, we already selling their cars.
I mean, what are you seeing on that rate of warranty? Because cash going out of the door uh in the last quarter? Or so is that starting to stabilize or are you expecting that to carry on increasing in 2026 and into 7? I just wonder whether that gap between what you're provisioning, what's going out the door, you have some space uh to narrow because you seem to have quite a lot for that and your balance sheet provision looks similar to yours now. And they have a quick question, just on the capacity side. A few people have rightly touched on that. I just wonder there's other than closing. There's other options. We're seeing the Chinese oems, uh, reportedly looking to partner with incumbents and obviously, um, Julian Ford 1, uh, speculated route there. I mean, what are your attitude or your thoughts on those kind of Partnerships the pros and cons of that? Obviously, you have the international JV with leap motor? Could you expand? Um, that structure a little bit, is it impossible in any region? Not just Europe that we see uh you do something more in terms of where plants sit within your different uh I guess, legal entities. Uh, when we get to the CMD thank you.
Thank you.
Antonio Filosa: Okay, thank you for your question. I will answer a couple of aspect of your question, and then I will leave João talking about the warranty spend. So before talking of warranty spend, which is very important, I wanna talk on product quality. We have refocused our industrial team in improving our product quality dramatically, and we are achieving that. We have recruited more than 2000 engineers, mainly in North America, to support both quality improvements and time to market improvements, and this is working. The early indicators of quality in our business is the one month in service. In 2025, since we started this, this new level of execution, we improved one month in service on our product by more than 50% in North America, by more than 30% in Europe. So quality is improving and will improve further.
Antonio Filosa: Okay, thank you for your question. I will answer a couple of aspect of your question, and then I will leave João talking about the warranty spend. So before talking of warranty spend, which is very important, I wanna talk on product quality. We have refocused our industrial team in improving our product quality dramatically, and we are achieving that. We have recruited more than 2000 engineers, mainly in North America, to support both quality improvements and time to market improvements, and this is working. The early indicators of quality in our business is the one month in service. In 2025, since we started this, this new level of execution, we improved one month in service on our product by more than 50% in North America, by more than 30% in Europe. So quality is improving and will improve further.
Speaker #2: And we already planning capacity sharing with Leap Motor in Europe and in South America, as we that path. I believe announced it already. So we are already on that this path will benefit them and us, them to localize production, us to share supplier basis, to share capacity, and to accelerate in some technological step up.
Okay, thank you for your question. I will answer a couple of aspect of your question and then I will leave. Joe, talking about the warranty, spend
So, before talking about what is spent, which is very important, I want to talk about product quality.
We have refocused our industrial team on improving our product quality, uh, dramatically.
Speaker #2: And on the warranty spend, I will leave Joao the answer.
Speaker #11: Yeah. Thank you, Antonio. So on warranty, as you note, 24 and 25 were basically flat. Our base at high levels. We don't expect warranty spend in 2026 to increase versus 2025 levels.
Speaker #11: preparing remarks, we are starting As to see improvements in warranty both in North America and Europe. So eventually, we expect to see benefits also on the warranty spend.
Antonio Filosa: Then the spend, I will leave in a moment to João. On the capacity question that you just asked, well, we read the declaration of for the CEO on proposal of capacity sharing with Geely. Actually, we were pioneering that, because with our partner, Leapmotor, through Leapmotor International and through our network of distribution in Europe, in South America, and in Middle East and Africa, we're already selling their cars. And we are already planning capacity sharing with Leapmotor in Europe and in South America, as we announced it already. So we are already on that path. I believe that this path will benefit them and us, them to localize production, us to share supplier bases, to share capacity, and to accelerate in some technological step up.
Antonio Filosa: Then the spend, I will leave in a moment to João. On the capacity question that you just asked, well, we read the declaration of for the CEO on proposal of capacity sharing with Geely. Actually, we were pioneering that, because with our partner, Leapmotor, through Leapmotor International and through our network of distribution in Europe, in South America, and in Middle East and Africa, we're already selling their cars. And we are already planning capacity sharing with Leapmotor in Europe and in South America, as we announced it already. So we are already on that path. I believe that this path will benefit them and us, them to localize production, us to share supplier bases, to share capacity, and to accelerate in some technological step up.
Speaker #11: But for sure, in '26, we don't expect warranty spend to be a headwind versus '25. Thank you.
And we are achieving that. We have recruited more than 2,000 engineers, mainly in North America, to support both quality improvements and time-to-market improvements. And this is working—the early indicators of quality in our business is the one month in service in 2025. Since we started this, uh, this new level of execution, we improved one month in service on our products by more than 50% in North America, by more than 30% in Europe. So quality is improving and will improve further. And then the spend—I will leave in a moment to draw.
On the capacity.
question that you just asked,
Speaker #3: The next question comes you. from the line of Emmanuel Rosner, from Wolf Research. Your line is open.
Speaker #13: Thank you very much. I have a couple of questions on the cadence, if I may. So you were signaling an improvement in first-half margin, but then in the second half, better than first half.
Uh well we we we read the the the decoration of um uh for the co on uh proposal of capacity sharing with Jilly. Actually uh we we were pioneering that because with our partner lip model,
To leave a model international and through our network or distribution in Europe, in South America, and the Middle East and Africa.
Speaker #13: And then 2027, better again. And then same thing for free cash flow. Besides for maybe the volume or market share trends from ramping up some Thank of the new products, are there consider that will make the second half any other puts and takes that we should further improvement in better than the first half?
Speaker #13: And then '27?
Speaker #2: thank you very much for this question. I will take Well, no, it. Yes, as you mentioned, we see a very big improvement in volumes.
We are already selling their cars, and we are already planning capacity sharing. We flip motor in Europe and in South America, as we announced it already. So, we are already on that path. I believe that this path will benefit them and us, to localize production, to share supplier bases, to share capacity, and to accelerate in some technological, uh,
Antonio Filosa: And on the warranty spend, I will leave João the answer.
Antonio Filosa: And on the warranty spend, I will leave João the answer.
[Company Representative] (Stellantis N.V.): Yeah. Thank you, Antonio. So on warranty, as you note, 2024 and 2025 were, basically flat, albeit at, high levels. We don't expect a warranty spend, in 2026 to, to increase, versus 2025 levels. As Antonio, mentioned during his prepared remarks, we are starting to see, improvements, in warranty, both in North America and Europe. So, eventually, we expect to see, benefits also on the warranty spend. But for sure, in 2026, we don't expect warranty spend to be a, a headwind versus 2025. Thank you.
[Company Representative] (Stellantis N.V.): Yeah. Thank you, Antonio. So on warranty, as you note, 2024 and 2025 were, basically flat, albeit at, high levels. We don't expect a warranty spend, in 2026 to, to increase, versus 2025 levels. As Antonio, mentioned during his prepared remarks, we are starting to see, improvements, in warranty, both in North America and Europe. So, eventually, we expect to see, benefits also on the warranty spend. But for sure, in 2026, we don't expect warranty spend to be a, a headwind versus 2025. Thank you.
Speaker #2: Driven by new products, but also in mixed. So one of the largest volume improvements will happen in the space of RAM, pickup truck, V8 Hemi engine power, where we are planning to produce and sell 100,000 units more in 2026 versus 2025.
step up and on the warranty spend, I will leave you all the answer. Yeah, thank you. So on warranty as you know, um,
I expect, uh, why don't you spend uh, in 22 2026 to increase versus 2025 levels as Antonio?
Speaker #2: And this is obviously a big profit maker for us. The other and third lever of profit enhancement that we see for '26 and forward is to improve industrial improve quality output, execution.
Uh, mentioned during his prepared remarks. Uh, we are starting to see a improvements, uh,
in warranty, both in North America and Europe. So, um, eventually we expect to see, uh, benefits out so on the warranty spend, but for sure in 26, we don't expect warranty. Spend to be ahead, we invest 25,
Speaker #2: That will mean to us to as we said, the already improving and we are keep improving them in many war room that we started in all the regions in all our organization.
Thank you.
Stuart Pearson: Okay.
Stuart Pearson: Okay.
Okay.
Operator: The next question comes from the line of Emmanuel Rosner from Wolfe Research. Your line is open.
Operator: The next question comes from the line of Emmanuel Rosner from Wolfe Research. Your line is open.
The next question comes from the line of Emmanuel. Rosner from Wolfe research. Your line is open.
Emmanuel Rosner: Thank you very much. I have a couple of questions on the cadence, if I may. So, you're signaling an improvement in first half margin, but then in the second half, better than first half, and then 2027, better again, and then same thing for free cash flow. Besides for, you know, maybe the volume or market share trends from ramping up some of the new products, are there any other puts and takes that we should consider that will make the second half better than the first half, and then, further improvement in 2027?
Emmanuel Rosner: Thank you very much. I have a couple of questions on the cadence, if I may. So, you're signaling an improvement in first half margin, but then in the second half, better than first half, and then 2027, better again, and then same thing for free cash flow. Besides for, you know, maybe the volume or market share trends from ramping up some of the new products, are there any other puts and takes that we should consider that will make the second half better than the first half, and then, further improvement in 2027?
Speaker #2: And by improving cost that we are working a lot with our engineering, we recruited more than 2,000 only in 2025 with our suppliers that we are engaging in many and several supplier tables to tackle the work on components system and subsystems.
Thank you very much. Um, I have a couple of questions on the agents if I may so um you're signaling uh,
Speaker #2: volume, mix, cost, So and industrial execution our profit for '26 and forward. Thank you very much.
An improvement in the first half margin, but then in the second half better than first half. And then 2027, uh, better again. And then same thing for free cash flow. Um, besides, for, um, you know, maybe the volume of market share Trends from ramping up some of the new products are there. Any other puts and takes that? We should consider that will make the second half better than the first half. And then, uh, further improvements in 27,
Antonio Filosa: Well, no, thank you very much for this question. I will take it. Yes, as you mentioned, we see a very big improvement in volumes driven by new products, but also in mix. So one of the largest volume improvements will happen in the space of Ram pickup truck, V8 HEMI engine power, where we are planning to produce and sell 100,000 units more in 2026 versus 2025, and this is obviously a big profit maker for us. The other and third lever of a profit enhancement that we see for 2026 and forward is to improve industrial execution. That means to us to improve quality output, as we said.
Antonio Filosa: Well, no, thank you very much for this question. I will take it. Yes, as you mentioned, we see a very big improvement in volumes driven by new products, but also in mix. So one of the largest volume improvements will happen in the space of Ram pickup truck, V8 HEMI engine power, where we are planning to produce and sell 100,000 units more in 2026 versus 2025, and this is obviously a big profit maker for us. The other and third lever of a profit enhancement that we see for 2026 and forward is to improve industrial execution. That means to us to improve quality output, as we said.
Speaker #13: And then a quick follow-up on cadence as well. And apologies if I missed this, but in terms of the cash out for some of these realignments, you said I think you will be over four years.
Well, no, thank you very much for this question. I will take it.
Yes, as you mentioned, we see, uh, a very uh, a big Improvement in volumes driven by new products.
But also in mix.
Speaker #13: Are you able to give us some sense of cadence of how much of it is in which year or specifically how much of it in '26?
So, 1 of the largest volume Improvement will happen in the space of Ram pickup truck.
Speaker #13: And again, apologies if I missed
Speaker #2: Yeah. So of the total 6.5, we expect about
Speaker #2: 2 billion euros to be paid in 2026. And of that 2 billion that. euros, 1 billion to actually be paid in Q1 '26 as we close negotiations.
V8 Hemi engine power, where we are planning to produce and sell 100,000 units more in 2026 versus 2025. And this is obviously a big profit maker for us.
Speaker #2: So that is the cadence. So in '27, '28, '29, it will be evenly spread but in 2026, we expect to pay 2 billion out of the
The other enter, the lever of a profit enhancement that we see for, uh, for, for '26 and forward, is to improve industrial execution.
Antonio Filosa: They are already improving, and we are keep improving them in many war rooms that we started in all the regions, in all our organization, and by improving the cost that we are working a lot with our engineering. We recruited more than 2,000, only in 2025, with our suppliers that we are engaging in many and several supplier tables to technically work on components, systems, and subsystems. So volume, mix, cost, and industrial execution will be the major levers to enhance our profit for 2026 and forward. Thank you very much.
Antonio Filosa: They are already improving, and we are keep improving them in many war rooms that we started in all the regions, in all our organization, and by improving the cost that we are working a lot with our engineering. We recruited more than 2,000, only in 2025, with our suppliers that we are engaging in many and several supplier tables to technically work on components, systems, and subsystems. So volume, mix, cost, and industrial execution will be the major levers to enhance our profit for 2026 and forward. Thank you very much.
That will means to us to improve quality output. As we said,
Speaker #13: Thank you
Speaker #13: very, very 6.5. helpful.
Speaker #3: Ladies and gentlemen, this was the last question for today. Let me know hand the call back to Mr. Antonio Filosa for the
They already improving and we're keep improving them. In many war room that we started in all the regions, in all our organization.
Speaker #2: No, well, thank you very much. Again,
Speaker #2: thank you for joining us in this important moment. What we announced today is a profound conclusion. strategic reset for our company and one that will put back our customer real needs at the center of everything we do.
By improving the cost that we are working a lot with our engineering, we recruited more than 2,000 only in 2025, uh, with our suppliers that we are engaging, uh, in a mini, and several supplier tables to Tech in Gary work on components system. A subsystems
So volume.
Speaker #2: We are very optimistic for 2026 and for the future. Please, I will have all you back, hopefully, in our investor day, May 21st, 2026.
Mix.
Cost and industrial execution will be the major levers to enhance our profit for '26 and forward. Thank you very much.
Emmanuel Rosner: And then a quick follow-up on cadence as well, and apologies if I missed this, but in terms of the cash out for some of these, you know, realignments, you said, I think it will be over four years. Are you able to give us some sense of cadence of how much of it is in, you know, which year, or specifically how much of it in 2026? And again, apologies if I missed that.
Emmanuel Rosner: And then a quick follow-up on cadence as well, and apologies if I missed this, but in terms of the cash out for some of these, you know, realignments, you said, I think it will be over four years. Are you able to give us some sense of cadence of how much of it is in, you know, which year, or specifically how much of it in 2026? And again, apologies if I missed that.
And then a quick follow up on Cadence as well and apologies if I missed it. But uh in terms of the cash out uh for some of these um you know realignments uh you said I think it will be over 4 years. Um, are you able to give us some sense of uh, Cadence of how much of it is in, you know, which year or specifically how much of it in 26 and again apologies if I missed that
[Company Representative] (Stellantis N.V.): Yeah. So, of the total 6.5, we expect about EUR 2 billion to be paid in 2026, and of that EUR 2 billion, EUR 1 billion to actually be paid in Q1 2026 as we close negotiations. So that is the cadence. So, in 2027, 2028, 2029, it will be evenly spread. But in 2026, we expect to pay EUR 2 billion out of the 6.5.
[Company Representative] (Stellantis N.V.): Yeah. So, of the total 6.5, we expect about EUR 2 billion to be paid in 2026, and of that EUR 2 billion, EUR 1 billion to actually be paid in Q1 2026 as we close negotiations. So that is the cadence. So, in 2027, 2028, 2029, it will be evenly spread. But in 2026, we expect to pay EUR 2 billion out of the 6.5.
Yeah, so uh of the total of 6.5.
Um, we expect about 2 billion euros to be paid in 2026 and of that 2 billion euros, 1 billion to actually be paid in q1, 26 as we, we close negotiations. So that is the Canadian. So, um, apart. So in 27 28/29, it will be evenly spread, uh, but, uh, in 2026, we expect to pay 2 billion and out of the 6.5.
Emmanuel Rosner: Thank you, very, very helpful.
Emmanuel Rosner: Thank you, very, very helpful.
Thank you very much, very, very helpful.
Operator: Ladies and gentlemen, this was the last question for today. Let me now hand the call back to Mr. Antonio Filosa for the conclusion.
Operator: Ladies and gentlemen, this was the last question for today. Let me now hand the call back to Mr. Antonio Filosa for the conclusion.
Ladies and gentlemen, this was the last question for today. Let me know hand the call back to Mr. Antonio filosa for the conclusion
Antonio Filosa: Noel, thank you very much. Again, thank you for joining us in this important moment. What we announced today is a profound strategic reset for our company, and one that will put back our customer real needs at the center of everything we do. We are very optimistic for 2026 and for the future. Please, I will have all you back, hopefully, in our Investor Day, 21 May 2026. Thanks again. See you later. Bye-bye.
Antonio Filosa: Noel, thank you very much. Again, thank you for joining us in this important moment. What we announced today is a profound strategic reset for our company, and one that will put back our customer real needs at the center of everything we do. We are very optimistic for 2026 and for the future. Please, I will have all you back, hopefully, in our Investor Day, 21 May 2026. Thanks again. See you later. Bye-bye.
No. Well, thank you very much again. Thank you for joining us in this important moment. What we announced today is a profound strategic reset for our company, and one that will put back our customers' real needs at the center of everything we do. We are very optimistic for 2026 and for the future. Please, I will have all of you back, hopefully, at our Investor Day, May 21, 2026. Thanks again. See you later. Bye bye!
