Stellantis Shares Surge as Cost-Cutting Initiatives Boost Quarterly Profits

POLICY WIRE — Milan, Italy — Stellantis reported an increase in third-quarter operating income on Wednesday, signaling that its ongoing cost-reduction initiatives are gaining momentum. The positive financial update, which helped push the automaker’s shares up by more than 6%, has bolstered expectations for a more robust performance in the final quarter of the year.

The company is currently executing a $70 billion turnaround strategy aimed at restoring long-term profitability. During the July-September period, adjusted operating income climbed to €256 million, or $285 million, a significant improvement from the €90 million recorded during the same timeframe last year.

Despite the rise in revenue and operating profit, the company experienced a $4.5 billion cash drain during the third quarter. Industrial free cash flows were negative €4.0 billion, though this represents a €0.3 billion improvement compared to the third quarter of 2025, reflecting better operating performance.

Stellantis reaffirmed its 2026 financial guidance, which anticipates a mid-single-digit percentage increase in net revenues for the full year and an adjusted operating income margin in the low-single-digit range. The company also reiterated its expectation to achieve positive industrial free cash flow by 2027.

The recent profit growth was largely fueled by a recovery in North America, which helped offset deepening losses in the Enlarged Europe region. While the company’s operating margin remains thin at 0.7%, the FaSTLAne 2030 program continues to gain traction as the firm works to stabilize its global operations.

Reporting by Policy-Wire (PW)