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Investing.com - Stellantis has posted its first revenue growth after seven quarters, signaling potential progress in CEO Antonio Filosa’s attempt to overhaul and revive the carmaking giant, but shares fell as analysts noted an upcoming second-half charge.
Filosa, who took over the helm of the company behind brands like Jeep and Fiat , has moved to reposition the business to bolster flagging sales and bring down elevated inventory levels in North America.
The firm has also said it would invest $13 billion in boosting its U.S. production operations over the next four years, in a bid to appease President Donald Trump, whose sweeping tariff policies are now estimated to cause Stellantis roughly 1 billion euros in 2025.
Still, this projection was below its previous prediction of an expense of between 1 and 1.5 billion euros.
During the quarter ending in September, Stellantis reported net revenue of 37.2 billion euros, a 13% increase compared to a year ago, thanks in large part to strength in its key European and North American markets. The top-line figure matched analysts expectations, according to Reuters.
Consolidated shipments totaled 1.3 million units, up 13%, boosted by an improvement in North America linked to the ongoing drive to normalize inventory levels at dealers in the region.
But, in a note, analysts at Jefferies flagged that Stellantis said it would book upcoming charges due to its strategic and product plans, and "more concerning," changes to its warranty calculations.
Still, the company confirmed its guidance for higher net revenue and cash flow generation, along with a low-single digit adjusted operating profit margin, in the second half of the fiscal year.
"We are also taking decisive actions to align Stellantis’ resources, programs and plans to support long-term, profitable growth," Filosa said in a statement.
Milan-listed shares in Stellantis were lower by more than 4% in early trading on Thursday.