Stellantis has today posted a slight increase in operating income in the third quarter as the automaker presses ahead with a slow turnaround process, which still generated a €4 billion industrial cash outflow in the period.
Following two years of sliding sales and profitability, CEO Antonio Filosa in May promised dozens of new models, cost cuts and deeper cooperation with Chinese partners as part of a new business plan up until 2030.
However, investors still need to be convinced that the Franco-Italian automaker, which in February announced EV-related impairments for over €22 billion, is on the path to sustained recovery.
Earlier this month its shares sank to their lowest level since the group’s formation in early 2021 through the Fiat Chrysler-Peugeot merger.
The Fiat-to-Jeep maker said its adjusted earnings before interest and taxes (EBIT) amounted to €256m in the three months from July to September, from €90m a year earlier.
That was broadly in line with a consensus of €191m from a Reuters poll of analysts, who were bracing for a weak quarter before an expected stronger performance in the final part of the year.
Third-quarter revenues were little changed at €37.6 billion, with slight increases in Europe and South America and a 3% drop in North America, which has historically been Stellantis’ most profitable market.
Cost cutting plan accelerates
The company today confirmed its 2026 forecasts and a closely-watched target to return to positive cash flow generation in 2027, as it books benefits for a group-wide cost-cutting plan CEO Filosa launched this year.
“Our Value Creation Program has ramped up rapidly, with positive contributions being recognised in the quarter, and we remain on track to implement at least 40% of the total €6 billion in run-rate efficiencies by the end of this year,” he said in a statement.
The company said it expected to make savings in the fourth quarter in the “mid-hundreds of millions of euros” area, or around €500m, approximately double the amount realised in the third quarter.
Stellantis today also said it would present a new business plan for its struggling Maserati luxury brand on December 10.