By Giulio Piovaccari
MILAN, July 30 (Reuters) - Stellantis' operating income missed analyst expectations in the second quarter, sending shares lower, as investors seek stronger evidence that CEO Antonio Filosa's turnaround of the Jeep maker is paying off.
The carmaker posted adjusted earnings before interest and taxes (EBIT) of €773 million ($884 million) in the second quarter, more than triple a year earlier boosted by strong North American revenue.
But the figure fell well short of the €914 million
expected by analysts in a Reuters poll.
Filosa, who took over the reins in June last year, has focused on restoring volumes and regaining market share after a prolonged downturn, betting that would lay the groundwork for a broader turnaround of the automaker.
Earlier this year, the group booked around €22 billion in charges as it scaled back its electrification ambitions.
Stellantis Milan-listed shares were down 4.8% at 0755 GMT, among the worst-performing stocks in Europe. They fell as much as 8% at the open.
NORTH AMERICA UP, EUROPE FLAT
Stellantis is the latest European automaker alongside Volkswagen and BMW to report disappointing quarterly results hit by growing competition from Chinese carmakers, hefty tariffs and rising costs.
Second-quarter revenues rose 13% year-on-year to €43.48 billion, with a 32% increase in North America where Stellantis said it outperformed in the United States on strength in models including Jeep Grand Wagoneer and Ram 1500 truck.
Second-quarter revenue was however flat in Europe, the automaker's other main market.
Analysts at Citi said Stellantis' adjusted operating income margin remained low at 1.8% - an improvement from a year earlier but below the first quarter of 2026, a result they called "perplexing" given strong quarter-on-quarter revenue growth.
They pointed to sharply negative pricing in Europe, higher administrative and R&D costs, an unfavourable currency swing and tariffs as headwinds.
STELLANTIS STANDS BY FY OUTLOOK
The company reaffirmed its full-year forecasts, which include a mid-single-digit net revenue growth and a low-single-digit adjusted operating income margin, as well as expected positive industrial free cash flows in 2027.
In May, Filosa unveiled a new long-term business plan focused on a slew of new or refreshed models, partnerships in manufacturing and technology and a more disciplined capital allocation.
Stellantis said it expected U.S. tariff costs for 2026 to total €1 billion-1.2 billion, and warned that second-half performance would be skewed towards the fourth quarter following a planned production shutdown during the summer.
($1 = 0.8744 euros)
(Reporting by Giulio Piovaccari in Milan and Gilles Guillaume in Paris; writing by Giulio Piovaccari;editing by Alvise Armellini and Josephine Mason)
