Market reaction and trading moves
The stock gained about 9% in Milan and was up roughly 12% in early New York trading. A U.S. real-time quote showed 4.79 dollars, up 0.65 or 15.58% at 12:29 PM EDT. Even with the bounce, shares are still sharply lower year to date.
The quarter and the plan
Revenue reached 37.6 billion euros, an increase of 1% from a year ago, and adjusted operating income was up 184%, coming in at 256 million euros compared with 90 million euros in the prior-year quarter. Industrial free cash flow was negative 4 billion euros, an improvement from negative 4.3 billion euros.
CEO Antonio Filosa told investors the turnaround plan unveiled in May is ahead of schedule. The plan dedicates 36 billion euros to bolster the company's brand portfolio, with 60% slated for the North America business, alongside new models, refreshed lineups, and added technologies.
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Guidance, costs, and long range targets
Stellantis reconfirmed its 2026 guidance and reiterated a target to generate positive free cash flow next year. For 2026, the company projects net revenue to grow by a mid-single-digit rate and expects the adjusted operating margin to be in the low-single-digit range.
On costs, Filosa noted that Stellantis aims to beat its earlier 6 billion euro cost-reduction plan by 2028, with 2.4 billion euros kicking off in 2027.
Competitive backdrop and why it matters
At the same time, European automakers are contending with intensifying competition in China from Xiaomi, BYD, and Geely. This week, Porsche said it would cut its exposure to China, and Mercedes-Benz reported third-quarter car sales fell in the country amid a "challenging market environment."
Earlier this month, Filosa urged Europe to do more to spur local manufacturing to counter Chinese rivals, calling for regulation that "incentivizes, rewards, and protects the ones that are able to demonstrate that they design cars, engineer cars." For portfolios, the through-line is straightforward: guidance held, cash burn narrowed, and management says it is ahead of schedule while planning to exceed cost cuts. Watch how that shows up in margins and free cash flow into 2027.
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