Shares in Stellantis NV (NYSE:STLA, EPA:STLA) fell 5% in early trading after the Vauxhall, Fiat, Citroen, Chrysler and Jeep maker reported a 70% fall in net profit last year but predicted a rebound in 2025.
The conglomerate of European and US automotive brands is also looking to appoint a new chief executive, after the abrupt departure of Carlos Tavares last year, saying the process is expected to be concluded in the first half of the year.
Results from the showed net profit of €5.5 billion for 2024, down from €18.6 billion the previous year as revenues shrank 17% to €156.9 billion.
Vehicle shipment volumes decreased 12% due to production gaps amid a "generational" product portfolio transition and a process to reduce inventories that the group said was now complete, with an 18% reduction overall and 20% drop in US dealer stock to 304,000 units.
Looking forward, 2025 financial guidance was simply for “positive” net revenue growth, mid-single digits underlying profit margin and positive free cash flows.
Chairman John Elkann said 2024 "was a year of stark contrasts" for the company, admitting the results fell short but that "important strategic milestones" were achieved, including beginning to roll out new products and starting production of EV batteries.
"We are firmly focused on gaining market share and improving financial performance as 2025 progresses."
'Ugly' numbers
Analyst Russ Mould at AJ Bell said the numbers are "ugly", with margins at the bottom of the guidance given when warning on profit last year, and earnings almost entirely wiped out in the second half of the year.
Stellantis is "stuck in reverse gear once again", he said, with the appointment of a new CEO a crucial before the end of the first half, "while still making sure it secures the right person for the job".
Any new boss may well look to take the "kitchen sink" to guidance to give themselves a bar to clear, which "could mean the promised return to profitable growth and positive cash generation in 2025 proves overly optimistic".