Stellantis has returned to revenue and profit growth, but its shares continue to reflect doubts about the strength of the recovery. Recent downgrades from Morgan Stanley and Berenberg show that improving financial results have not eliminated concerns about profitability or the time the group will need to make its product lineup more competitive.
Stellantis financial recovery gains ground, but shares have lost 56% this year
In the second quarter of 2026, revenue rose 13% to €43.5 billion, while net income reached €293 million. Adjusted operating margin increased to 1.8%, compared with 0.6% a year earlier. The direction has improved, but profitability remains limited. In practical terms, every €100 in revenue generates about €1.80 in adjusted operating income, which differs from net profit.
North American revenue increased 32%, while Enlarged Europe remained broadly flat and posted a negative 0.6% adjusted operating margin. Stronger results in North America therefore coexist with an European business that still loses money on this measure.
Industrial free cash flow reached positive €1 billion in the second quarter, although the first-half total remained negative at €921 million. At the end of June, Stellantis reported €44.1 billion in available industrial liquidity, within the range targeted by the group.
Investors are also weighing the cost of the industrial reset announced in February. Stellantis reported €22.2 billion in charges related to the second half of 2025, mainly tied to revised product plans and lower expectations for electrification. The total includes about €6.5 billion in cash outflows spread over four years, meaning the full amount did not leave the company’s accounts immediately. The 2025 loss also led Stellantis to cancel its dividend for 2026.
Recent bank assessments help explain why investors remain cautious. Morgan Stanley downgraded Stellantis to Underweight, citing delays in the arrival of new products. Berenberg cut its rating from Buy to Hold and lowered its price target from €7.80 to €5.10 because of concerns about the pace of margin recovery.
The FaSTLAne 2030 plan targets a return to positive annual industrial free cash flow in 2027 and an adjusted operating margin of 7% by 2030. Stellantis also aims to cut annual costs by €6 billion by 2028 compared with 2025.
The gap between those targets and current results helps explain why higher revenue alone has not reassured the market. Investors still want evidence that Stellantis can fund its investments, rebuild margins and eventually resume shareholder returns.
Meanwhile, Stellantis shares have lost about 56.6% of their value since the start of 2026, falling from €9.72 on January 2 to €4.22 on September 22.
