Stellantis has just published its financial results for 2024, a year that was particularly eagerly awaited after the turbulence that shook the group last year. Although the figures are marked by sharp declines, they nevertheless demonstrate solid resilience and an ability to reinvent itself. This publication comes at a time when Stellantis is undergoing a strategic change with the departure of Carlos Tavares and the forthcoming appointment of a new CEO.
A difficult year in 2024, but with some resilience
Stellantis' financial results for 2024 show a contrasting year in which the group faced numerous headwinds. Net sales reached €156.9 billion, a decrease of 17% compared to 2023, mainly due to a 12% reduction in consolidated shipments. This decline is explained by a temporary reduction in the product range and the end of destocking activities. Net income fell by 70% to €5.5 billion, while recurring operating income was down 64%, with a margin of 5.5%. Despite the sharp drop in sales, Stellantis still generates good profits and a relatively high margin level for a generalist manufacturer.
However, Stellantis posted a negative industrial free cash flow of €6 billion due to the decline in sales and the temporary increase in working capital related to production adjustments. However, the group highlights its strong liquidity position, with €49.5 billion of available liquidity, allowing it to maintain a net financial position of €15.1 billion.
John Elkann, chairman of Stellantis, said: "Although 2024 has been a very mixed year for the business, with results below our potential, we have achieved key strategic milestones. In particular, we have begun to roll out our new multi-energy platforms, launched new products, started production of electric vehicle batteries through our joint ventures and implemented the partnership with Leapmotor International. This new model offensive will continue in 2025. Stellantis' dedicated and talented teams are continuing their efforts with energy and determination, engaging with key stakeholders and making decisions as close to our customers' needs as possible. We remain committed to gaining market share and improving our financial performance in 2025.
Turnaround initiatives that are showing results
Since September 2024, Stellantis has taken decisive steps to improve its performance and profitability. The interim management team has reduced US dealer inventories beyond defined targets, prioritised strategic launches to better meet customer needs, and used CO2 regulation flexibilities to mitigate risks while continuing to reduce emissions.
The Group has also intensified its engagement with dealers in the US and Europe, facilitated the resolution of supplier issues and strengthened its dialogue with governments and regulators. Increased delegation to the regions has enabled faster decision-making and rigorous execution.
Stellantis launched the first next-generation products on the STLA Medium and STLA Large platforms, as well as on the global Smart Car platform with the Citroën C3 / ë-C3. These platforms offer consumers greater freedom of choice between internal combustion, hybrid and electric engines.
Growth targets for 2025
For 2025, Stellantis expects to achieve positive top-line growth with a single-digit recurring operating margin and positive industrial free cash flow. The process of appointing a new CEO is underway and is expected to be finalised in the first half of 2025. In the meantime, the company remains focused on executing its strategy.
Stellantis will launch 10 new products in 2025 and will continue to integrate artificial intelligence into its processes and vehicles. The Group also unveiled STLA AutoDrive 1.0, its first in-house developed automated driving system, and plans to pay a dividend of €0.68 per ordinary share, subject to shareholder approval.
Although 2024 is a poor year for Stellantis, with significant declines in sales and financial results, the group shows great resilience. Its operating margin of 5.5%, comparable to that of Volkswagen, shows a certain solidity in a difficult environment. Stellantis remains a real cash machine, with a cash flow that allows it to prepare for the future while supporting its strategic projects.
The outlook for 2025 is rather optimistic, with expected sales growth and positive cash flow results. However, the double-digit margin target set by Carlos Tavares now seems out of reach in the short term, which would mark a turning point in the group's strategy.
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