Jeep maker Stellantis swings to profit on rising demand in North America; shares fall 5% - CNBC

What the report says

CNBC reported that Stellantis returned to profit in the second quarter, helped by stronger North American demand and early progress under CEO Antonio Filosa’s turnaround effort. The automaker, whose brands include Jeep, Dodge, Fiat, Chrysler and Peugeot, recorded net profit of 293 million euros, or about $335 million, compared with a 1.87 billion euro loss in the same period a year earlier.

The company’s adjusted operating income rose to 773 million euros for the April-to-June quarter, more than three times the 213 million euros posted a year earlier, but still came in below a Reuters analyst consensus estimate of 914 million euros cited by CNBC. Stellantis also reported industrial free cash flow of 1 billion euros at the end of June, above Citi’s 600 million euro forecast.

Investors reacted cautiously despite the profit swing. CNBC said Stellantis shares listed in Milan dropped more than 8% before trimming losses, while U.S.-listed shares were down about 3% in Thursday morning trading. Citi analysts said investors may want additional proof that the company’s operating performance is improving before taking a more positive view of the stock.

Filosa pointed to his “FaSTLAne 2030” plan as underway but said the company still needs time. He also said production of the Mexico-built Jeep Cherokee is increasing, though Stellantis is limiting some trims because U.S. tariff costs are expected to add at least 1 billion euros this year. The results matter because Stellantis is trying to restore profitability while balancing pricing, tariffs and product launches in a competitive auto market.