By Dominic Chopping

Stellantis reinstated financial guidance for the year, saying it expects to report a sequential improvement in revenue and profitability in the second half of the year.

The carmaker had suspended its full-year guidance in April as it became difficult to predict the impact of President Trump's 25% tariffs on market volumes and the competitive landscape, with the company working to improve sourcing opportunities and cut production.

Stellantis said Tuesday that it now expects net revenue in the second half to increase from the first half, with a low-single-digit adjusted operating income margin and improved industrial free cash flow. Its adjusted operating income margin in the first half came in at 0.7%.

The company pre-released preliminary earnings for the first half of the year last week as it became apparent there was a divide between analysts' expectations and the company's performance. It said at the time that its earnings in the period took a hit of around $350 million from U.S. tariffs, while restructuring efforts and higher costs also dragged on the Jeep maker's results.

The U.S. and EU have since agreed a deal that means cars shipped from Europe to the U.S. will incur a 15% tariff. Duties of 25% still apply to imports from Canada and Mexico--where Stellantis has production--but exclude products that fall under the nations' free-trade agreement.

Stellantis said Tuesday it expects to report a total tariff impact of around 1.5 billion euros ($1.74 billion) this year, of which 300 million euros was incurred in the first half.

"The company remains highly engaged with relevant policymakers, while continuing long-term scenario planning," it said in a statement.

New Chief Executive Antonio Filosa, a 25-year company veteran who was appointed in May and has already moved to reshuffle the senior leadership team, said that 2025 is turning out to be a tough year. However, he noted gradual signs of progress with improving volumes, revenue and adjusted operating income despite intensifying external headwinds.

"Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results," he said in a statement.

Stellantis hopes it can spur its recovery through new products and plans to launch 10 new models in 2025, including a V8-powered Ram truck, as well as a new Jeep Compass. In addition, production of the hybrid Jeep Cherokee and the Dodge Charger Sixpack will resume, having been on production hiatus since 2023.

The automaker, which also houses brands like Chrysler, Fiat and Peugeot, reported a loss of 2.26 billion euros on revenue of 74.26 billion euros in the first six months of the year, confirming the preliminary results it had previously released. The figures mark a sharp decline from the same period last year when it reported 5.65 billion euros in profit on revenue of 85.02 billion euros.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 29, 2025 03:15 ET (07:15 GMT)

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