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Reinstates guidance, expects improvements in second half

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Filosa to make first public appearance in analyst call

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Company confirms fall in revenue, net loss for first half

(Adds details, context)

By Giulio Piovaccari

MILAN, July 29 (Reuters) - Stellantis ( STLA ) said on

Tuesday it expected higher net revenue and a low-single digit

operating income margin in the second half despite increasing

headwinds, as the automaker aimed for a gradual recovery after a

tough first half.

The company 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 about 1.5 billion euros,

including 300 million euros incurred in the first half.

The Franco-Italian group also forecast improved industrial

free cash flow in the second half compared with the first six

months, 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.

The Italian manager, a company veteran, was appointed in May

after a disastrous performance in the crucial U.S. market in

2024 forced the ousting in December of former boss Carlos

Tavares.

Stellantis ( STLA ) in April withdrew its guidance for a moderate

recovery this year after a profit drop in 2024, citing an

evolving trade scenario and uncertain impact of U.S. tariffs.

Filosa, who faces the challenge of revamping product ranges

and regaining market share and investors' confidence, was set to

make his first official appearance as CEO in a results call with

analysts later in the day.

NORTH AMERICAN REVENUES FALL

On Sunday, the United States and the European Union struck a

framework trade agreement, imposing a 15% U.S. import tariff on

most EU goods - half the threatened rate - and averting a bigger

trade war.

Stellantis ( STLA ), however, is exposed to 25% U.S. tariffs on

Mexico and Canada. Last year, more than 40% of the 1.2 million

vehicles Stellantis ( STLA ) sold in the United States were imports,

mostly from the two neighboring countries.

For the first half, the maker of car brands including

Jeep, Fiat, Peugeot and Ram 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.

Efforts to cut excess inventories in the U.S. brought net

revenues in North America, historically Stellantis' ( STLA ) largest and

most profitable market, to just over 28 billion euros in the

first half, below over 29.2 billion euros in Europe in the same

period.