Stellantis reports H1 2024 financial results

Stellantis N.V. has reported its financial results for the first half of 2024, reflecting a challenging yet strategically pivotal period. The company posted net revenues of €85.0 billion, marking a 14% decrease compared to H1 2023, and a net profit of €5.6 billion, a sharp 48% decline year-on-year. Despite these setbacks, Stellantis achieved an Adjusted Operating Income (AOI) of €8.5 billion, translating to a 10% AOI margin.

Key financial metrics include:

• Net revenues: €85.0 billion (down 14% y-o-y)
• Net profit: €5.6 billion (down 48% y-o-y)
• Adjusted Operating Income (AOI): €8.5 billion
• AOI Margin: 10%
• Industrial Free Cash Flow: Near zero (-€0.4 billion)

The financial dip was primarily attributed to a decline in volume and mix, compounded by foreign exchange headwinds and restructuring costs. Notably, the North American market faced significant challenges, impacting overall performance.

Commenting on the results, Carlos Tavares, CEO of Stellantis said: “The Company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues. While corrective actions were needed and are being taken to address these issues, we also have initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well. We have significant work to do, especially in North America, to maximize our long-term potential. I want to thank every employee for their teamwork and commitment during this very consequential chapter of our story.”

Strategic responses and operational adjustments

In response to the operational hurdles, Stellantis’ management has undertaken decisive actions aimed at enhancing performance. Key areas of focus include improving market share and inventory management in North America. These measures are expected to bolster performance in the latter half of the year and into 2025.

Product and market developments

2024 is set to be a crucial year for Stellantis’ product portfolio, with over 20 launches planned. These include a refreshed Ram 1500, a revamped European van range, and the Peugeot 3008, debuting on the new STLA platform.

Additionally, the company has secured all necessary approvals to launch the Leapmotor International joint venture, with initial deliveries slated for Q3 2024 in Enlarged Europe, followed by South America, Middle East & Africa, and India & Asia Pacific.

The Leapmotor International JV is poised to introduce technologically advanced, cost-competitive electric vehicles, including the C10 SUV and T03 car. These launches are expected to strengthen Stellantis’ position in the growing electric vehicle market across various regions.

Commercial performance

Despite financial challenges, Stellantis maintained robust commercial performance. The company continues to lead in commercial vehicle market share in Europe and South America and has now achieved the top spot in the Middle East & Africa. In the US, Stellantis holds the number 1 position in plug-in hybrid vehicle sales and is second in Low Emission Vehicle (LEV) sales.

Capital returns and future outlook

In the first half of 2024, Stellantis returned €6.7 billion in capital, partially reflecting the acceleration of its €3.0 billion share buyback program. The company remains committed to returning at least €7.7 billion before the end of the year.