MILAN (Reuters) -Stellantis guided on Tuesday for increased net revenues and a low-single digit operating income margin in the second half despite increasing headwinds, as the automaker aims for a gradual recovery after a tough first half.

The group also forecast an improved industrial free cash flow performance in the second half compared with the first six months of the year, when it burned cash for 3 billion euros ($3.48 billion).

"Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results," new CEO Antonio Filosa said in a statement.

Stellantis said its forecasts for the second half were based on tariff rules in place as of Tuesday and estimated an overall tariff impact for 2025 of approximately 1.5 billion euros, including 300 million euros incurred in the first half.

For the first half, the maker of Jeep, Fiat and Peugeot cars broadly confirmed preliminary figures it released last week. They include a 13% drop in net revenues to 74.3 billion euros, an adjusted operating income margin of 0.7%, and a net loss of 2.3 billion euros.

($1 = 0.8630 euros)