Stellantis NV shares rallied sharply during Wednesday morning trading in New York, climbing more than 15% following a quarterly update that signaled early traction in chief executive Antonio Filosa’s ongoing turnaround strategy for the Fiat-to-Jeep manufacturer.
The stock advance provided investors with a measure of relief after shares had tumbled more than 60% since the beginning of the year, touching their lowest valuation earlier this month since the group’s formation in 2021. For the third quarter, the automaker reported a 1% year-on-year increase in revenue to €37.6 billion, equivalent to about $43.5 billion.
Profitability metrics outpaced consensus forecasts. Adjusted operating income surged 184% to €256 million, or approximately $296 million, marking a substantial recovery from €90 million, or $104 million, in the same period last year. That performance easily surpassed the €191 million, or roughly $222 million, average expectation compiled in a analyst poll.
Despite the improved operating results, industrial free cash flow remained negative at €4 billion, or $4.64 billion. However, that cash outflow narrowed compared to the €4.3 billion, or about $4.99 billion, recorded a year earlier, underscoring the formidable hurdles facing Filosa as he attempts to rebuild the company’s financial footing.
Reinforcing investor confidence, Stellantis reaffirmed its medium-term trajectory, including its commitment to generating positive free cash flow by 2027. Management also indicated that the company expects to surpass its previous goal of €6 billion, or $6.96 billion, in annualized cost savings by 2028. Finance chief Joao Laranjo told markets to anticipate hundreds of millions of euros in supplementary savings during the final quarter of the year alone.
Detailing the operational roadmap, Filosa stated that the group remains on schedule to put at least 40% of its planned structural efficiencies into effect by the end of the current year. Management attributes the recovery momentum to a combination of disciplined cost controls, upcoming new vehicle model rollouts, price stabilization, and rigorous manufacturing quality enhancements.
Regional performance figures showed localized headwinds, notably a 3% decline in North American revenue during the quarter. The drop illustrates persistent commercial pressures within a historically critical market for the multinational automotive group as leadership navigates its broader industrial overhaul.
