Stellantis NYSE: STLA reported higher shipments and revenue in the first quarter of 2026 and said it returned to profitability following what Chief Executive Officer Antonio Filosa described as a “decisive reset action taken in 2025.” Management emphasized disciplined execution, a focus on customers, and tighter capital and cost control as it works through what Filosa called a challenging environment across regions.
Management points to early progress and product momentum
Filosa said Stellantis is “back on a path to sustainable growth,” highlighting market share gains in several regions and a 12% year-over-year increase in shipments. He also pointed to a busy product cadence in 2026, including “10 all-new products and six refreshed products.”
In North America, Filosa said the U.S. industry declined 6% in the quarter, while Stellantis sales rose 4%, driven by Ram and Jeep. He said the company gained about 80 basis points of market share and described Ram as having its “best quarter one since 2023,” with a 20% year-over-year U.S. sales increase. Filosa also said the North America order book remained strong, up more than 20% year-over-year, and noted late-2025 launches ramping up for the new Jeep Cherokee and Dodge Charger Six-Pack.
In Europe, Filosa said sales rose 5% year-over-year, or 8% including Leapmotor, to more than 730,000 vehicles. He said EU30 market share reached 17.5%, “the highest share in a quarter since Q1 2024,” and highlighted leadership in hybrids and strong positions in France and Italy, with good performance in Germany and Spain. Filosa said Stellantis Pro One ended the quarter as Europe’s light commercial vehicle leader with 28.7% share.
He added that South America maintained leadership, with 29% share in both Brazil and Argentina, while Middle East and Africa market share improved to 11.5%, up 50 basis points year-over-year, driven in part by 18% sales growth in Algeria. In APAC, Filosa said shipments increased 15% despite a weaker industry environment.
Q1 financial results: shipments up 12%, revenue up 6%, AOI positive
Chief Financial Officer Joao Laranjo said consolidated shipments totaled 1.4 million units, up 12% year-over-year, with growth across all regions. Net revenues were EUR 38.1 billion, up EUR 2.3 billion, or 6%, from the prior year period. He attributed the revenue increase primarily to volume and mix, which he said contributed roughly EUR 4.2 billion, partly offset by a EUR 2.4 billion negative foreign exchange translation impact driven mainly by North America and Middle East and Africa.
Laranjo said adjusted operating income (AOI) returned to positive at EUR 1.0 billion, improving EUR 633 million year-over-year, with AOI margin at 2.5% (up 160 basis points). He cited several drivers behind the year-over-year AOI improvement:
- Volume/mix: +EUR 739 million, with North America the largest contributor
- Net pricing: +EUR 99 million, supported by North America and Middle East and Africa, partially offset by negative net pricing in Europe
- Industrial costs: +EUR 412 million, reflecting better manufacturing and logistics performance and a more stable production schedule
- Tariffs: “Broadly neutral” year-over-year, as recognition of about EUR 400 million of IEEPA tariff adjustment offset Q1 2026 tariff costs
- SG&A: -EUR 153 million, largely due to higher marketing to support volume growth
- Foreign exchange/other: -EUR 383 million, mainly tied to Turkish lira devaluation
Cash flow, liquidity, and inventory
Industrial free cash flow was negative EUR 1.9 billion in Q1, an improvement of EUR 1.1 billion year-over-year. Laranjo said the improvement reflected stronger operating performance, disciplined capital allocation, and normal seasonal working-capital dynamics, and that it occurred despite around EUR 700 million of cash outflows related to second-half 2025 charges.
He also said Stellantis issued three tranches of hybrid perpetual notes totaling EUR 5 billion in March 2026, supporting industrial available liquidity of EUR 44 billion at quarter-end, equivalent to 28% of net revenues and within the company’s stated target range of 25% to 30%.
Total inventory rose 11% year-over-year to 1.3 million units. Laranjo said inventory remained aligned with commercial momentum and supported the launch pipeline “while maintaining discipline.”
Regional profitability: North America positive, Europe breakeven
Laranjo said North America delivered positive AOI of EUR 263 million (1.6% margin), improving EUR 805 million year-over-year, driven by higher Ram shipments, positive net pricing, and better industrial execution. In “a larger Europe,” AOI was “effectively breakeven,” which management framed as a sequential improvement versus Q4 2025. South America and Middle East and Africa continued to contribute strongly, with AOI of EUR 393 million and EUR 282 million, respectively.
Management noted that reporting segment comparatives were restated following a change in reporting segments, and that Maserati is no longer reported as a separate segment.
Outlook and key themes: sequential margin improvement, cost program, and commodity volatility
Laranjo confirmed Stellantis’ 2026 financial guidance “as outlined on February sixth,” calling for improvement in net revenues, margins, and industrial free cash flow. He said the company expected to manage volatility tied to geopolitical, trade, and inflationary pressures.
In Q&A, Filosa repeatedly emphasized expectations for sequential improvement in North America profitability. In response to multiple analysts, he said Stellantis expects North America margins to improve “quarter by quarter” through 2026, including improvement in Q2 versus Q1 “excluding the IEEPA impact, which is a one-timer.” He highlighted stronger mix tied to pickup trims equipped with the Hemi V8 and said about 40% of Q1 pickup deliveries were with the Hemi V8, which he called higher margin than other configurations.
Both Filosa and Laranjo pointed to cost as a key lever. Filosa said Stellantis launched a global cost management effort called the Value Creation Program (VCP), describing it as “strong in North America, strong in Europe, strong globally,” and suggesting it could include fixed cost management. Laranjo said industrial costs are expected to be a tailwind for the full year despite raw material headwinds, citing manufacturing improvements from higher volumes, product-cost opportunities, and expected warranty improvements following actions taken last year.
On commodities, Laranjo said current market pricing, net of hedges, could bring the full-year impact “close to 1% of revenue,” noting Q1 impact was limited due to raw materials curves and hedge positions. He also said commodity headwinds for the remainder of the year were likely above the roughly EUR 400 million IEEPA credits recognized in Q1, leaving “a minor headwind on top of that.”
In Europe, Filosa described margin pressure tied in part to regulation and CO2 emissions requirements, particularly in light commercial vehicles, and said the company’s “North Star” for the rest of the year is “breakeven plus.” He said pricing pressure was “all around the lineup” on an average basis, while management focused on cost actions and improving mix in LCVs.
On capital spending, Laranjo said 2026 CapEx is expected to be “slightly below 7% of net revenues.” On tariffs, he said Stellantis’ projections assume the current tariff scheme and do not include different assumptions for USMCA.
Management also discussed Leapmotor International, with Filosa saying it sold 24,000 units in Q1 and is profitable, with profits per unit supported by product competitiveness and technology. Filosa told analysts Stellantis has not seen meaningful cannibalization of other brands in Europe, saying cross-shopping has been “very limited” and that Stellantis brands grew “with and without Leapmotor sales.”
Stellantis plans to provide more detail on strategy and targets at its Investor Day on May 21, which Filosa said will outline “clear priorities, clear targets, and a focused roadmap for execution.”
About Stellantis NYSE: STLA
Stellantis N.V. is a global automotive manufacturer formed through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA, a transaction completed in January 2021. The company designs, manufactures and sells a broad portfolio of passenger cars, light commercial vehicles and related powertrains under a large number of well-known brands, including (but not limited to) Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, Ram and Vauxhall. Stellantis also provides parts, accessories, service operations and branded aftersales support through legacy networks such as Mopar and regional dealer ecosystems.
In addition to vehicle manufacturing, Stellantis operates mobility- and software-related businesses and financial services.
Read More
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Stellantis, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Stellantis wasn't on the list.
While Stellantis currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
SpaceX has quietly filed to go public later this year. Ahead of what's expected to be the largest IPO of all time, there are seven space stocks that you can buy today that are positioned to benefit from accelerating space commercialization in 2026.
These seven companies are shaping the next phase of the space economy—from launch leaders and satellite networks to data, defense, and in-space infrastructure.
Get This Free Report
