Auto manufacturer Stellantis has reported a US$2.7 billion loss in the first half of 2025, results that chief financial officer Doug Ostermann described in an earnings call as “far below our potential”.
The firm issued €1.5 billion (US$1.9 billion) in debt between May and June 2025.
On 6 June, €800 million was issued in European Medium-Term Notes (EMTN), due 6 June 2035 with a 4.625% fixed rate. A further €700 million was issued in EMTNs due 6 June 2031, with a 2.875% fixed rate.
On H1 issuance, Ostermann commented, “In the first half [we] issued debt both in the US market and in the European market to replace those maturities that are going to expire this year. In fact, [we] issued a bit more than what will expire this year because the markets were pretty constructive. I feel from a liquidity standpoint, we’re still in very good shape.
“We have a very strong balance sheet, and we’ve worked hard to build up a fortress balance sheet because we know that this business can be volatile, and there will be periods like we’re experiencing right now when cash is in the outflow position, and we need to continue to invest in the business.”
In an April analysis, Morgan Stanley stated that the European auto sector is seeing its largest underperformance in decades, falling behind the EU market and EU cyclicals.
Morgan Stanley analysts, led by equity analyst Javier Martinez de Olcoz Cerdan, wrote, “US tariff exposure has driven Porsche and Stellantis’ relative underperformance, but the fall has spread to all names, including the most defensive and those with no direct US exposure.”
They continued, “[Stellantis] is very exposed to US tariffs and China competition in the rest of the world, as is reflected in last year’s underperformance. Yet consensus seems to be well aware of those issues now and Stellantis has a healthy product pipeline ahead, with room to generate value consolidating the brand portfolio, a strategy that may follow the new CEO appointment, hopefully soon.”
Morgan Stanley’s price target for Stellantis has fallen to US$9.60 from US$15.10 in November 2024. This in itself was a decline from the US$30.40 target seen in April 2024.
Fitch Ratings announced its intention to withdraw its Stellantis ratings earlier this month for commercial reasons.
At S&P, Stellantis’ rating dropped from BBB+ to BBB in March due to weak margin prospects – but held a stable outlook, attributed to expectations that new model launches and inventory correction measures would aid recovery. The rating was affirmed earlier this month.
Similarly, Moody’s dropped its rating from Baa1 to Baa2 in May. However, the negative outlook ascribed in October was revised to stable.
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