Stellantis NV (STLA) shares plummeted 5.36% in Tuesday trading following the release of its first-half 2025 financial results, which revealed a stark 92% drop in adjusted earnings per share and ongoing challenges from tariffs and market headwinds.

The automaker reported adjusted earnings of €0.18 per share for H1 2025, down from €2.36 in the same period last year. Net revenues declined 13% to €74.3 billion, primarily due to decreased shipments in North America and Europe. The company's net profit turned to a loss of €2.3 billion, compared to a €5.6 billion profit in H1 2024.

Stellantis also updated its estimate for the 2025 net tariff impact to approximately €1.5 billion, with €0.3 billion already incurred in the first half. This looming tariff hit, coupled with the weak financial performance, has clearly rattled investors. However, the company has re-established its financial guidance for the second half of 2025, projecting increased net revenues, low single-digit adjusted operating income margin, and improved industrial free cash flows compared to H1.

Despite the challenges, Stellantis CEO Antonio Filosa expressed confidence in the company's recovery efforts, citing sequential improvements in shipments, net revenues, and adjusted operating income from H2 2024 to H1 2025. The company is banking on its expanded product lineup and revitalized marketing strategies to drive future growth, with plans to launch 10 new models in 2025.