TLDR
- Stellantis returned to profit in Q1 2026 with net profit of âŹ377 million, versus a loss of âŹ387 million a year ago
- Adjusted operating income of âŹ960 million beat consensus, but a ~âŹ400 million tariff adjustment inflated the headline number
- Stripping out the IEEPA tariff adjustment, North America’s margin falls to 1.2% â below the 1.8% consensus
- Net revenues rose 6% to âŹ38.13 billion, missing analyst expectations
- Full-year 2026 guidance confirmed, with net tariff cost assumption cut to âŹ1.30 billion from âŹ1.60 billion
Stellantis stock dropped more than 6% on Thursday after the automaker posted its Q1 2026 results. On the surface, the numbers looked like a turnaround. Dig a little deeper, and the picture gets murkier.
Net revenues came in at âŹ38.13 billion, up 6% year-over-year. That beat the 4.7% growth analysts had penciled in, but still fell short of absolute forecasts. Net profit was âŹ377 million, a sharp swing from the âŹ387 million loss posted in Q1 2025.
Adjusted operating income landed at âŹ960 million, a 2.5% margin, ahead of the âŹ696 million consensus estimate. So why did the stock fall?
Stellantis shares fell 7% even after Q1 adj oper. income rose to âŹ960M, well above the âŹ568M consensus. Revenue increased 6% to âŹ38.1b, but the quarter also included about âŹ400M of expected U.S. tariff refunds, which likely tempered investor enthusiasm around the turnaround pic.twitter.com/bEOZ5uAxzL
— Wall St Engine (@wallstengine) April 30, 2026
Analysts at Jefferies flagged a roughly âŹ400 million IEEPA tariff cost adjustment buried in North America’s results. Strip that out, and adjusted operating income drops to around âŹ560 million â a 1.2% margin, well below the 1.8% consensus.
“NA missed headline, and to a greater extent excl IEEPA, with mix and cost possibly looking weaker than expected,” Jefferies wrote.
North America: The Key Region Disappoints
North America is the segment Stellantis is counting on most for its recovery. It contributed âŹ16.11 billion in net revenues â the largest of any region.
The division posted adjusted operating income of âŹ263 million at a 1.6% margin, compared to a loss of âŹ542 million in Q1 2025. Shipments rose 17% to 379,000 units, driven by the Ram 1500, the refreshed Jeep Grand Wagoneer, and the all-new Jeep Cherokee.
Progress, yes. But the tariff-adjusted miss suggests the underlying recovery may not be as strong as the headline numbers imply.
Europe told a less flattering story. The region generated just âŹ8 million in adjusted operating income on âŹ14.38 billion in revenues â a 0.1% margin, down from 2.1% a year earlier. Negative net pricing and unfavorable model mix were the main culprits.
Jefferies called it “a small beat with moving parts roughly as expected,” pointing to persistent price weakness as the key issue.
Regional Bright Spots
South America was a standout, posting âŹ393 million in adjusted operating income at a 10.8% margin. Middle East and Africa added âŹ282 million at 11.8%. Asia Pacific remained a trouble spot, recording a âŹ30 million loss.
Industrial free cash flows were negative âŹ1.92 billion â a 37% improvement year-over-year, but still short of Jefferies’ estimate of negative âŹ1.2 billion. Working capital outflows came in higher than expected.
The result included roughly âŹ700 million in cash outflows tied to second-half 2025 charges. Capital expenditure fell âŹ800 million year-over-year to âŹ1.62 billion.
Industrial available liquidity stood at âŹ44.14 billion as of March 31, 2026, equal to 28% of trailing 12-month revenues â within the company’s 25â30% target range.
Stellantis confirmed its full-year 2026 guidance: mid-single-digit revenue growth, a low-single-digit adjusted operating income margin, and improved industrial free cash flows. The company also reduced its net tariff cost assumption to âŹ1.30 billion from âŹ1.60 billion.
Jefferies maintains a “buy” rating on the stock with a price target of $11.70.
CEO Antonio Filosa said the 10 new vehicles planned for 2026 are expected to build on the momentum from 2025 launches.
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