Stellantis reported a modest increase in operating profit for the third quarter, as the automaker continued its turnaround efforts while recording an industrial cash outflow of €4 billion during the period. The Franco-Italian automaker is working to reverse two years of declining sales and profitability, Reuters reported.
The automaker, whose brands include Fiat and Jeep, reported adjusted earnings before interest and taxes (EBIT) of €256 million for the July-September quarter, up from €90 million in the same period last year.
In May, CEO Antonio Filosa outlined plans for dozens of new models, cost reductions and closer cooperation with Chinese partners as part of a business plan running through 2030.
However, investors are yet to be convinced that the company is on a path to sustained recovery. In February, Stellantis announced electric vehicle-related impairments exceeding €22 billion. Earlier this month, its shares fell to their lowest level since the group was formed in early 2021 through the merger of Fiat Chrysler and Peugeot.
The result was broadly in line with the €191 million consensus forecast from a Reuters poll of analysts. Analysts had anticipated a weak quarter ahead of an expected improvement in performance towards the end of the year.
Third-quarter revenue remained largely unchanged at €37.6 billion. Revenue recorded slight increases in Europe and South America, while North America, historically Stellantis’ most profitable market, reported a 3% decline.
Cost-Cutting Targets €6 Billion In Efficiencies
Stellantis reaffirmed its 2026 forecasts and its closely watched target of returning to positive cash flow generation in 2027. The company is also recognising benefits from a group-wide cost-cutting programme launched by Filosa this year.
"Our Value Creation Program has ramped up rapidly, with positive contributions being recognized 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 was quoted as saying in a statement.
The company expects to generate savings in the “mid-hundreds of millions of euros” range in the fourth quarter, or around €500 million. This would be approximately twice the savings achieved in the third quarter.
Maserati Business Plan To Be Unveiled In December
Stellantis also announced that it would present a new business plan for its struggling luxury brand Maserati on December 10.
