KEY TAKEAWAYS
- Stellantis shares fell in premarket trading Wednesday after the struggling automaker’s 2024 profit disappointed investors, although the Jeep and Chrysler parent said it expects to return to revenue growth this year.
- The company posted 2024 net profit of 5.5 billion euros ($5.77 billion), a 70% year-over-year slump and below consensus estimates of analysts surveyed by Visible Alpha.
- Stellantis, whose CEO Carlos Tavares resigned in December, said it expects to name his replacement in the first half of 2025.
Stellantis (STLA) shares fell 3.5% in premarket trading Wednesday after the struggling automaker’s 2024 earnings disappointed investors, although the Jeep parent said it expects to return to revenue growth this year.
The company, whose brands also include Fiat and Chrysler, posted 2024 net profit of 5.5 billion euros ($5.77 billion), a 70% year-over-year slump and below consensus estimates of analysts surveyed by Visible Alpha.
Revenue fell 17% year-over-year to 156.9 billion euros but topped expectations. Shipment volumes fell 12% due to “temporary gaps in product offerings, as well as now-complete inventory reduction initiatives,” Stellantis said.
Stellantis, whose CEO Carlos Tavares resigned in December, has been struggling with excess inventories in the U.S., where some dealers have complained of high prices. It said U.S. dealer stock fell 20% last year and that it expects to name a new CEO in the first half of 2025.
Stellantis also guided toward “positive” revenue growth for 2025, “mid-single digits” adjusted operating income margin, and “positive” industrial free cash flow, “reflecting both the early stage of the commercial recovery as well as elevated industry uncertainties.”
Stellantis shares had lost nearly half their value in the past 12 months entering Wednesday’s session.
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