By Dominic Chopping

Stellantis still expects to report a sequential improvement in revenue and profitability in the second half of the year, despite warning of one-off costs.

The automaker backed guidance for 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 margin in the first half came in at 0.7%.

However, the company cautioned that as it continues making changes to its strategic and product plans, and as it responds to various regulatory, macroeconomic and other developments, it expects to incur charges in the second half. It also expects one-off charges from changes in how it treats warranties.

Shares fell 4.2% in early European trade.

Stellantis reported strength in North America during the third quarter, which spurred an overall increase in group shipments and revenue.

The automaker was working to reduce bloated inventories in the U.S. last year that included cutting production. Shipments and revenue both rose sharply in the quarter as inventory has now normalized and as customers bought more vehicles such as the Jeep Wrangler and Ram light-duty trucks.

"Sales momentum in the U.S. improved," the company said. "This trend was evidenced across the Jeep, Ram, Chrysler, and Dodge brands - taking the company to a monthly market share of 8.7% in September, the highest in 15 months."

The company earlier this month announced plans to bolster U.S. manufacturing by 50%, earmarking $13 billion to manufacture more Jeeps, pickups and Dodge SUVs in the country through the end of the decade. The plans will see it launch five new vehicles and a new engine on top of other model refreshes.

Stellantis, which also houses brands like Opel, Fiat and Peugeot, reported third-quarter revenue of 37.2 billion euros ($43.16 billion), up 13% on year, while consolidated shipments also rose 13%, to 1.3 million units, thanks mostly to a 35% improvement in North America.

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

(END) Dow Jones Newswires

October 30, 2025 05:40 ET (09:40 GMT)

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