Jeep maker Stellantis posts revenue jump, warns on one-off costs

Stellantis On Thursday, the embattled automaker issued a warning about one-time costs through the second half of the year as it tries to respond to political, economic and regulatory challenges.

The multinational conglomerate, which owns well-known names such as Jeep, Dodge, Fiat, Chrysler and Peugeot, confirmed again It announced its financial guidance for the second half of the year, citing continued improvement in net revenues, cash flow and operating income.

But Stellantis said it expects to incur charges in the six months through December that will be “substantially excluded” from operating income when finalized.

Milan-listed Stellantis shares fell as much as 6% on the news, before trading nearly 5% lower at 9:17 a.m. London time (5:17 a.m. ET) following losses. The stock price is down more than 25% since the beginning of the year.

The warning about one-time charges comes despite a fairly positive third quarter. CEO Antonio Filosa’s move to implement a turnaround plan will probably be seen as a welcome development.

Stellantis said its net revenues for the July-September period totaled 37.2 billion euros ($43.2 billion), reflecting a 13% annual increase, driven mainly by growth in the North American and European markets.

Analysts expected third-quarter net revenue of 36.58 billion euros, according to a consensus compiled by LSEG.

“We saw positive sequential progress and solid year-over-year performance in the third quarter, driven by the return of sales growth, as we continue to implement significant strategic changes to provide our customers with greater freedom of choice,” Stellantis’ Filosa said in a statement. he said.

“We are also taking decisive action to align Stellantis’ resources, programs and plans to support long-term, profitable growth, including our recently announced $13 billion investment in the United States,” he added.

Stellantis announced plans to invest in the United States earlier this month as part of an effort to accelerate growth and expand its domestic footprint. It’s the largest U.S. investment in the company’s 100-year history, and the company said it will include the launch of five new vehicles and the creation of more than 5,000 jobs.

The announcement comes amid President Donald Trump’s efforts to create more manufacturing jobs in the United States by using aggressive tariffs, especially for the auto industry. The company said the plans expand on information Stellantis Chairman John Elkann gave Trump in January.

— CNBC’s Michael Wayland contributed to this report.