Stellantis has turned a profit in the second quarter, driven by a rebound in North American demand, signaling early progress under CEO Antonio Filosa's turnaround strategy. The automaker reported a net profit of 293 million euros ($335.3 million) for the period, compared to a loss of 1.87 billion euros a year earlier. However, the stock fell sharply as the earnings missed market expectations.

The parent company of brands like Jeep, Dodge, Fiat, Chrysler, and Peugeot posted an adjusted operating profit of 773 million euros for the April-to-June quarter, more than tripling from 213 million euros in the same period last year. This figure, however, fell short of the consensus analyst estimate of 914 million euros compiled by Reuters.

The key driver behind the turnaround

The improved performance was largely fueled by a recovery in the North American market, which was the biggest contributor, with support from all other major regions. Filosa stated in the release that the "FaSTLAne 2030" strategy is being steadily implemented, with several major new models launched on schedule this year, reinforcing confidence in meeting full-year 2026 financial targets.

Market reaction and analyst views

Investors reacted negatively to the earnings miss. Shares of Stellantis listed in Milan plunged, with intraday losses exceeding 8% before narrowing. The stock was recently trading down about 5% at 5.07 euros, a drop of 0.22 euros.

While the automaker generated industrial free cash flow of 1.0 billion euros by the end of June, significantly beating Citigroup's 600 million euro forecast, the adjusted operating margin remained very low at just 1.8%. Citigroup analysts noted that while the positive free cash flow is a plus, investors will likely need to see more concrete evidence of sustained operational improvement before they become bullish on Stellantis again.