Stellantis NV (NYSE:STLA, EPA:STLA) ’ US-listed shares fell about 5% on Thursday morning after the automaker reported first quarter 2026 results that missed free cash flow expectations, overshadowing stronger-than-expected revenue and profit.
The company posted negative industrial free cash flow of €1.9 billion, an improvement of 37% from a year earlier but worse than analyst expectations for a €1.2 billion outflow. The miss weighed on investor sentiment despite better-than-expected profitability.
Adjusted operating income came in at €960 million, well above consensus estimates of €568 million, supported by stronger North American volumes and improving execution across key regions.
Revenue rose 6% year over year to €38.1 billion, above the consensus of €37.5 billion.
Net profit reached €0.4 billion, compared with a loss in the prior year period, reflecting higher volumes and improved operating performance.
Regionally, North America led growth with a 6% sales increase and a 4% rise in US volumes, outperforming a declining market. Market share rose to 7.9%, driven by strength in Ram and Jeep, which benefited from new and refreshed models, including the Jeep Cherokee, Grand Cherokee, Wagoneer, and Dodge Charger SIXPACK.
In Europe, sales rose 5%, or 8% including Leapmotor, with market share increasing to 17.5%. Growth was supported by hybrid and electric offerings as well as new launches such as the Fiat Grande Panda ICE.
South America sales rose 1%, though market share declined, while Stellantis maintained leadership positions in Brazil and Argentina. In the Middle East and Africa, sales were stable, with share rising to 11.5%, helped by gains in Algeria and Türkiye. Asia Pacific sales fell 4%, though India posted strong 71% growth.
As we initiate quarterly reporting, the first three months of 2026 reflect the early results of our actions to return Stellantis to sustainable, profitable growth,” Stellantis CEO Antonio Filosa said in a statement.
“The products we launched in 2025 have been well received and we’re confident that the 10 new vehicles planned for 2026 will build on this momentum.”
The company reaffirmed its full-year 2026 outlook, calling for net revenues to increase at a mid-single-digit percentage rate and for its adjusted operating income margin to reach a low-single-digit percentage.
Stellantis also expects industrial free cash flow to improve year over year, despite including about €2 billion in cash payments related to second-half 2025 charges. The automaker added that it still expects to generate positive industrial free cash flow in 2027.
