Stellantis N.V

2024 Performance Decline: Stellantis reported a significant decline in its financial performance for 2024, with adjusted operating income (AOI) down 64% to EUR 8.6 billion and net revenues declining 17% to EUR 157 billion. This was attributed to reduced vehicle shipments, inventory reduction actions, and lower sales from temporary production gaps. Consolidated shipments dropped by 12% or 750,000 units year-over-year.

2025 Growth Expectations: For 2025, Stellantis anticipates a rebound, expecting both revenue and AOI margin improvement. They forecast mid-single-digit AOI margins, significantly enhanced by new product launches, including 20 launches in 2024 and 10 in 2025. The company expects stronger second-half performance compared to the first half, which highlights their focus on profitable growth.

Risks and Challenges: The challenges include geopolitical tensions affecting market dynamics, particularly in North America and Europe. The company faces uncertainty related to potential tariffs with the USMCA, which could impact financial outlooks. Additionally, Stellantis has lost about 5% of US market share since 2019, indicating a need for improved strategic positioning to regain footing.