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Investing.com -- Moody’s Ratings has affirmed Stellantis N.V.’s Baa2 rating but changed the outlook from stable to negative, citing weak operating performance and uncertainty about the company’s recovery timeline.
The rating agency pointed to Stellantis’ declining market share in Europe and the US since the first half of 2024, which it attributed to dealer-level de-stocking, lower demand related to gaps in the model lineup, and delays in launching new products.
Stellantis recorded a Moody’s-adjusted EBIT margin of negative 1.3% for the twelve months ending June 2025, reflecting higher warranty costs and continued weak operating performance.
The company’s free cash flow has been significantly negative, with Moody’s-adjusted FCF at €-9.2 billion in 2024 and €-6.3 billion in the first half of 2025. Despite some expected improvement in the second half of 2025, Moody’s projects a negative FCF of around €-5 billion for the full year 2025.
Stellantis reported some positive developments in recent months, including a 16% reduction in independent dealer stock and a 14% increase in its order book in the first half of 2025 compared to the second half of 2024. In the third quarter of 2025, US sales rose by 6%, and European new car registrations returned to year-over-year growth in August. The company also reported a 13% year-over-year increase in shipments during Q3, with particularly strong growth in North America.
Despite these challenges, Moody’s noted that Stellantis maintains a strong liquidity position with €29 billion in cash and cash equivalents and €4 billion in marketable securities as of June 2025, along with access to €16.3 billion in undrawn committed credit lines.
The Baa2 rating continues to be supported by Stellantis’ scale as one of the world’s largest automotive manufacturers, its diverse brand and product portfolio, balanced exposure to North American and European markets, and its strong liquidity and conservative financial policy.
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