Stellantis Reports Weaker-Than-Expected Q1 Revenue, Suspends Full-Year 2025 Guidance Due To Trump Tariff-Led Uncertainties
Synopsis
The company stated that it is engaging extensively with relevant governments on tariff-related policy and is also taking steps to adjust production plans and identify improved sourcing opportunities.
Chrysler parent Stellantis NV (STLA) on Wednesday suspended its full-year 2025 guidance, citing tariff-related uncertainties after reporting a year-on-year drop in first quarter (Q1) revenue.
The company reported net revenues of €35.8 billion ($40.66 billion), down 14% compared to Q1 2024, and below an analyst estimate of €35.92 billion, as per Finchat data.
While the drop was primarily due to lower shipment volumes, adverse regional mix and price normalization also impacted revenues, the company said.
Earlier this month, Stellantis reported consolidated shipments of approximately 1.2 million units for the quarter, down from 1.3 million in the corresponding quarter of 2024, due to a decline in shipments in North America and Europe.
“While Q1 2025 top-line results were below prior-year levels, other KPIs reflect early, initial progress on our commercial recovery efforts,” CFO Doug Ostermann said.
The company also suspended its full-year financial guidance due to tariff-related uncertainties, highlighting the difficulty in predicting the possible impacts of tariffs on market volumes and the competitive landscape.
Stellantis said it is engaging extensively with relevant governments on tariff-related policy and is also taking actions to adjust production plans and identify improved sourcing opportunities.
In February, the firm stated that it expects “positive” net revenue growth, a “mid-single-digit” adjusted operating income margin, and positive free cash flow for 2025.
Stellantis’ rival General Motors (GM) also withdrew its previously provided full-year guidance on Tuesday.
Stellantis, meanwhile, is also in the process of appointing a new and permanent CEO, which is expected to be concluded by the first half of 2025.
NYSE-listed shares of Stellantis traded 1% lower in pre-market on Tuesday morning.
The stock is down by about 25% so far this year and by about 57% over the past 12 months.
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