Stellantis narrows third-quarter cash drain to 4 billion euros

Stellantis posted a 4 billion euro cash shortfall in the third quarter, marking a reduction in the company's financial outflow from the previous year.

The European automaker generated 37.6 billion euros in revenue during the period, a 1% increase compared to the same quarter last year. Its adjusted operating income climbed 184% to 256 million euros, up from 90 million euros in the prior year. The negative industrial free cash flow improved to 4 billion euros, down from 4.3 billion euros the year before. Stellantis shares rose 3.6% shortly after European markets opened, although the stock has dropped 62% since the start of the year.

CEO Antonio Filosa announced the figures on Wednesday as the company proceeds with its 60 billion euro turnaround strategy. He stated that the firm continued to make progress in the early execution of its FaSTLAne 2030 plan. Filosa noted that the company launched new products, accelerated partnerships, and delivered meaningful improvements in manufacturing and quality.

The restructuring plan aims to achieve positive industrial free cash flow by 2027. Stellantis has committed to investing 36 billion euros in its automotive brand portfolio, with 60% of that capital directed toward its struggling North American sector. The strategy includes introducing new vehicles, refreshing existing models, and incorporating new technologies.

The report highlights ongoing challenges for European manufacturers in China, where domestic brands such as Xiaomi, BYD, and Geely are gaining market share. This week, Porsche announced it would reduce its exposure to the Chinese market as sales decline. Mercedes-Benz also reported a slump in third-quarter car sales in the region due to a challenging market environment.

Filosa told CNBC earlier this month that European regulators must do more to incentivize local manufacturing to counter Chinese rivals. He called for rules that incentivize, reward, and protect companies that can demonstrate they design and engineer vehicles.

Stellantis reaffirmed its expectation of positive industrial free cash flow in 2027 as it continues to implement the massive overhaul.