Stellantis operating profit rises as cost cuts gain traction
STLA•Stellantis' third-quarter adjusted EBIT rose to €256 million from €90 million a year earlier, beating analysts' €191 million forecast. The automaker said it expects about €500 million in fourth-quarter savings and recorded a €4 billion industrial cash outflow in July-September.
1. Cost cuts gather pace
Stellantis said its group-wide Value Creation Program was ramping up, with visible benefits in the third quarter. CEO Antonio Filosa said the company remained on track to implement at least 40% of its €6 billion in targeted run-rate efficiencies by year-end. The company expects fourth-quarter savings in the mid-hundreds of millions of euros, around €500 million and approximately double the amount realized in July-September.
2. Quarterly results
Adjusted earnings before interest and taxes rose to €256 million from €90 million a year earlier, above a Reuters poll forecast of €191 million. Revenue was little changed at €37.6 billion, with slight increases in Europe and South America and a 3% decline in North America. Stellantis recorded an industrial cash outflow of €4 billion in the quarter.
3. Targets and Maserati plan
Stellantis confirmed its 2026 forecasts and target to return to positive cash flow generation in 2027. The automaker said it will present a new business plan for Maserati on December 10. After two years of falling sales and profitability, investors still need to be convinced that the company is on a path to sustained recovery, the article said.
