Stellantis reported a modest improvement in operating income for the third quarter of 2026 as the automaker continued its turnaround efforts, although the company recorded an industrial cash outflow of €4 billion during the period.
The automotive group, which owns brands including Fiat and Jeep, posted adjusted earnings before interest and taxes (EBIT) of €256 million for the July-to-September quarter, up from €90 million a year earlier.
Revenue remained broadly unchanged at €37.6 billion. Slight increases in Europe and South America offset a 3% decline in North America, historically one of Stellantis’ most profitable markets.
Turnaround Efforts Continue Amid Financial Pressure
Stellantis has faced two years of declining sales and profitability. In May, CEO Antonio Filosa outlined plans to introduce dozens of new models, reduce costs and deepen cooperation with Chinese partners as part of the company’s FaSTLAne 2030 strategy.
The company also announced more than €22 billion in electric vehicle-related impairments in February, adding to investor concerns about the financial consequences of its earlier electrification investments.
Despite the latest improvement in adjusted operating income, the €4 billion industrial cash outflow highlights the ongoing pressure on cash generation as the company works to restore profitability and improve its financial position.
Cost Reduction Programme Targets €6 Billion in Efficiencies
Stellantis said its Value Creation Program is progressing, with savings beginning to contribute to quarterly results. The company remains on track to implement at least 40% of its targeted €6 billion in annualised efficiencies by the end of 2026.
CEO Antonio Filosa said the company had continued to advance its product and operational plans during the quarter.
“During the quarter, we continued to make progress in the early execution of our FaSTLAne 2030 plan, launching new products, accelerating partnerships as planned, and delivering meaningful improvements in manufacturing and quality. At the same time, our Value Creation Program has ramped up rapidly, with positive contributions being recognized in the quarter, and we remain on track to implement at least 40% of the total €6 billion in run-rate efficiencies by the end of this year. As a result, we reaffirm our 2026 guidance, and our expectation of positive Industrial Free Cash Flow in 2027.”
The company expects to generate savings in the mid-hundreds of millions of euros during the fourth quarter, approximately €500 million. That would be around twice the savings realised in the third quarter.
Stellantis Reaffirms 2026 Outlook
Stellantis confirmed its 2026 financial guidance and maintained its target of returning to positive industrial free cash flow in 2027.
The outlook depends in part on the continued implementation of cost reductions, new product launches and improvements in manufacturing and quality. The company is also pursuing partnerships intended to support its broader business strategy.
While the third-quarter increase in adjusted EBIT marks an improvement from the previous year, revenue remained largely flat and industrial cash outflow continued to weigh on the business.
The coming quarters will show whether Stellantis can convert its cost-saving measures and operational changes into sustained improvements in profitability and cash generation.