The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1205 GMT - German defense company Renk's free cash flow for the fourth quarter will look worse than it really is, MBW's Jens-Peter Rieck writes. The shifting of payments into the first quarter of 2026 will distort the company's cash generation picture, as the timing switch "masks underlying strength," the analyst writes. The company's guidance for 2025 earnings remains intact despite headwinds from a weaker dollar, U.S. tariffs and Germany's ban on the export of arms to Israel, the analyst writes. "That guidance remains unchanged underscores very strong cost control." Renk climbs 8.4%, more than recouping losses of 6% over the week to Thursday's close. (josephmichael.stonor@wsj.com)European car stocks trade lower across the board after Stellantis said it would take a 22 billion-euro write-down as part of a reset of its strategy to shift away from electric vehicles. "Stellantis Write-Down Puts Brakes on European Car Stocks -- Market Talk," at 0942 GMT, incorrectly said Stellantis's strategy reset would shift away from car stocks.

0942 GMT - European car stocks trade lower across the board after Stellantis said it would take a 22 billion-euro write-down as part of a reset of its strategy to shift away from electric vehicles. Milan-listed shares in Stellantis plunge 23%, which would be the stock's worst one-day performance since the company was created in 2021. Sweden's Volvo Car and France's Renault both drop around 4%, with Germany's Volkswagen is down 2.1%. Makers of premium and luxury cars take a hit as well, with Porsche shares falling more than 3%, and Ferrari, BMW and Mercedes-Benz all down. In U.S. premarket trading, Ford Motor and General Motors--which disclosed their own multibillion-dollar charges on their respective EV businesses last year--are little moved. (adria.calatayud@wsj.com) Corrections & Amplifications

This article was corrected at 05:00 a.m. ET to clarify that European car stocks trade lower across the board after Stellantis said it would take a 22 billion-euro write-down as part of a reset of its strategy to shift away from electric vehicles. An earlier article incorrectly said Stellantis's strategy reset would shift away from car stocks.

0935 GMT - Investors expected Stellantis to book an impairment, Citi analysts say. However, the magnitude of the charge including cash payments is a key negative factor, even though they will be spread out, they add. The carmaker announced a deep reset of its business and related impairment charges. Stellantis also expects a net loss for the second half of 2025, and suspended its dividend. Citi expects that any upside to Stellantis would come in relation to capacity reduction, but the carmaker didn't announce factory closures on Friday. Shares trade 18% lower at 6.71 euros, after plunging as much as 21% earlier in the session. (sarah.sloat@wsj.com)

0920 GMT - Stellantis won't need a capital increase after booking extraordinary write-downs of around 22.2 billion euros, Equita Sim's Martino De Ambroggi says in a research note. The Jeep maker said the charges would have a cash cost of 6.5 billion euros spread over four years. This is well above Equita's expectations of over 2 billion euros and likely worse than other analysts anticipated, De Ambroggi says. Stellantis canceled its dividend and announced a bond issue, leaving it with enough liquidity so that it won't need a capital increase, he adds. Moreover, Stellantis's preliminary result estimates for the second half point to full-year numbers below consensus expectations, and its qualitative guidance for 2026 is also lower than expected, the analyst says. Shares fall 22%, which would be the biggest one-day percentage drop since the company was formed in 2021. (adria.calatayud@wsj.com)

0822 GMT - European equity indexes largely falter at the open, following Asian stocks down as another Anthropic release hits software stocks. The U.K.'s FTSE 100 is down 0.3%, as software provider RELX drops 4.6%. London Stock Exchange Group and Sage both fall around 3.5%. Software stocks also slip in France, with the CAC 40 down 0.3%. Dual-listed automaker Stellantis plummets by 15% after guiding for heavy losses, knocking indexes in both Paris and Milan. The FTSE MIB is down 0.5%, where luxury stocks also fall. The German DAX trades flat as healthcare and consumer cyclical losses counter gains for utilities. Spain's IBEX 35 nudges up 0.1% after initially falling, as basic materials companies boost the sector.(josephmichael.stonor@wsj.com)

0229 GMT - Capital A would be able to raise more capital once it exits financial distress status, says Maybank IB analyst Yin Shao Yang. The company has restored positive shareholders' equity after disposing its airline business and is expected to secure an uplift by May or June, he says. This would allow Capital A to raise capital, pursue a potential dual listing in Hong Kong and the list its five subsidiaries. Capital A is also exploring options to monetize or distribute its stake in AirAsia X, which could support a special cash dividend, Yin adds. Maybank raises its target price on Capital A to MYR0.75 from MYR0.69 and keeps a buy rating on the stock. Shares are 0.9% higher at MYR0.58. (yingxian.wong@wsj.com)

1623 GMT - Cummins cites tariff costs as a factor for offering 2026 EBITA margin guidance slightly below analysts' expectations. "Tariffs diluted the EBITDA percent of every single segment in 2025 and will continue to do so in 2026, even though we did well to mitigate the costs and largely recover them," Chief Financial Officer Mark Smith told analysts during a conference call. The engine maker guided an adjusted EBITDA margin of 17% to 18% for this year and forecast 3% to 8% revenue growth. Analysts were looking for a margin forecast above 18%. Shares down 8.1%. (robert.tita@wsj.com)

(END) Dow Jones Newswires

February 06, 2026 12:20 ET (17:20 GMT)

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