Here's the hottest stuff from the Stellantis $STLAM (-1,42%)
(NYSE: STLA / Euronext: STLAM) Q2 / H1 2026 Financial Results, just released by the multi-brand automotive group (Jeep, RAM, Peugeot, Fiat):
🚀 Second-Quarter Recovery & North America as the Driving Force
Following the devastating previous periods, Stellantis is showing the first visible signs of improvement—primarily thanks to a strong comeback in its core North American market:
Revenue surge in Q2: Net revenue rose in the second quarter by +13% to EUR 43.5 billion (driven by a massive +32% increase in North America).
Deliveries (Shipments): Global shipments climbed in Q2 by +10% to approximately 1.60 million vehicles.
Model Drivers: In the U.S., key models such as the Jeep Grand Wagoneer (+43%), RAM 1500 (+9%), and Chrysler Pacifica (+7%) saw noticeable growth in the retail business.
🔮 Profitability picks up slightly—Europe remains the problem child
The turnaround in operating performance is gaining momentum, but there is still a lot of hard work to be done in terms of margins:
Adjusted Operating Income (AOI): Doubled in the first half of the year (H1) to 1.73 billion EUR (up from 540 million EUR in H1 2025).
AOI margin: Climbed to 1.8% (vs. 0.6% in the prior year) and to 2.1%.
"Enlarged Europe" as a problem area: While nearly all regions were in the black, the European business slipped in Q2 with an AOI margin of -0.6% .
Cash Flow Turnaround: Following massive cash burn, the industrial free cash flow rebounded in Q2 to +1.0 billion EUR.
🤖 Full-Year Forecast Confirmed Despite Tariff Headwinds
Management is sticking to its targets despite political and geopolitical uncertainties:
2026 Full-Year Outlook Confirmed: Revenue growth in the mid-single-digit percentage range and a low-single-digit operating margin (AOI margin) are still expected.
Tariff Impact: Stellantis anticipates a net headwind from import tariffs in FY26 amounting to 1.0 to 1.2 billion EUR.
Cash Flow Path: Free cash flow is expected to continue improving throughout the full year and to be 2027 .
⚡ 💡 Jack’s Take
Stellantis is clawing its way out of the trough, inch by inch! The operational recovery in North America is doing the group a world of good and preventing things from getting worse. But let’s not kid ourselves: meager margins of just under 2% show just how fierce the price war in the automotive industry has been and how deeply the effects of model changes and inventory clear-outs have taken their toll.
The quality verdict: Not a “moat stock” for the faint of heart! Stellantis remains a cyclical restructuring play. The stock is undoubtedly cheaply valued, but as long as margins in Europe don’t pick up sustainably and free cash flow isn’t reliably flowing, this stock is strictly for turnaround speculators with strong stomachs. 🚗⚡