Key facts: Stellantis (STLAM) FCF -€4.0B; Dongfeng JV, Canada assumption

Stellantis reported a Q3 2026 net loss of $503M, a 90% improvement YoY. Adjusted operating income surged 184% to $284M, driven by $919M in cost savings. North America contributed a $467M pricing gain, with new product launches like the Ram Rumble Bee boosting sales. Europe remains challenging, with a $345M operating loss.

Stellantis reported a Q3 net loss of $503 million, an improvement from a $5 billion loss last year. Revenue was $41.7 billion, up 1%, but industrial free cash flow remained negative at $4.4 billion. Tariffs and restructuring costs are major challenges, with $667 million in tariff expenses incurred so far. CEO Antonio Filosa is implementing a restructuring plan, FaSTLAne 2030, targeting $6.7 billion in annual savings by 2028.

Stellantis reported higher third-quarter operating income and expressed confidence in exceeding cost-saving targets, aiming for positive cash flow by 2027. CEO Antonio Filosa's turnaround strategy gained investor confidence, driving shares up nearly 15%. The company targets billions in savings by 2028 through its 'Value Creation Program'.

Stellantis (STLA) reported Q3 earnings, highlighting seasonal working-capital movements and a €500 million year-over-year decline in capital expenditures. The company expects a reversal in Q4 and reaffirmed its 2026 guidance. Cost savings from the VCP program are expected to exceed €2.4 billion by 2027. Regional performance varied, with North America showing improvement and Europe facing challenges due to BEV penetration.

U.S. automakers report higher revenues but face rising costs due to tariffs, diesel, and computer chips. GM, Ford, and Stellantis saw increased sales of trucks and SUVs, with GM up 2.9%, Ford up 2%, and Stellantis up 1%. However, they warn of material cost increases, with GM and Ford estimating $2 billion in added expenses. EV sales dropped after the federal tax credit ended, but hybrids are gaining popularity.

The CAC 40 closed at 7,886.96, down 0.18 points. Stellantis surged 15.39% after strong earnings, while Dassault Systèmes fell. Investors awaited Fed and ECB decisions, with energy prices also influencing sentiment. The CAC 40 has lagged regional peers due to political uncertainty and higher borrowing costs.