Stellantis Reports 2024 Losses but Expects Growth in 2025

Stellantis reports a significant 17% decline in revenue for 2024, with a net profit drop of 70%. Despite these challenges, the company anticipates positive revenue growth and improved margins for 2025, bolstered by strong liquidity and a proposed dividend.

Date: 26-02-2025

AI Rating: 4

Performance Overview
Stellantis' financial performance for 2024 shows significant declines, with net revenues of €156.9 billion, reflecting a 17% drop from 2023. This decline is concerning as it indicates possible challenges in sales and market demand.

Financial Metrics
Key performance indicators reveal further distress: net profit fell sharply by 70% to €5.5 billion, showcasing severe financial distress and potentially undermining investor confidence. Adjusted operating income also saw a hefty decline, falling 64% to €8.6 billion, with an operating margin of just 5.5%. The negative free cash flows of €6 billion raise further concerns around cash management and operational efficiency.

Outlook for Recovery
Despite the challenging financial results, Stellantis remains optimistic about its future. The company expects positive revenue growth and an improved operating margin in 2025. Their strong liquidity position of €49.5 billion presents a buffer during this transitional phase and may help facilitate strategic initiatives aimed at recovery.

Additionally, Stellantis plans to propose a dividend of €0.68 per share, signaling confidence in future profitability pending shareholder approval. This proposed return to shareholders could serve to enhance investor sentiment after a disappointing fiscal year.

Stocks: STLA