Jeep maker Stellantis posts revenue jump, warns on one-off costs

Stellantis on Thursday issued a warning on one-off costs through the second half of the year as the embattled automaker seeks to respond to political, economic and regulatory challenges.

The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, reaffirmed its financial guidance for the second half of the year, citing continued improvement in net revenues, cash flow and operating income.

Stellantis said, however, that it expects to incur charges in the six months through to December that, once finalized, will be “largely excluded” from its operating income.

Milan-listed shares of Stellantis fell as much as 6% on the news, before paring losses to trade around 5% lower at 9:17 a.m. London time (5:17 a.m. ET). The stock price is down more than 25% year-to-date.

The warning on one-off charges came despite what appeared to be a fairly positive third quarter. It’s likely to be seen as a welcome boost as CEO Antonio Filosa executes his turnaround plan.

Stellantis said net revenues for the July-September period came in at 37.2 billion euros ($43.2 billion), reflecting an increase of 13% year-on-year, mainly driven by growth in its North American and European markets.

Analysts had expected third-quarter net revenues to come in at 36.58 billion euros, according to an LSEG-compiled consensus.

“As we continue to implement important strategic changes in order to provide our customers with greater freedom of choice, we have seen positive sequential progress and solid year-over-year performance in Q3, marked by the return of top-line growth,” Stellantis’ Filosa said in a statement.

“We are also taking decisive actions to align Stellantis’ resources, programs and plans to support long-term, profitable growth, including our recently announced $13 billion investment in the U.S.,” he added.

Stellantis unveiled plans to invest in the U.S. earlier this month as part of a push to accelerate growth and expand its domestic footprint. It marked the largest U.S. investment in the firm’s 100-year history, which the company said will include the launch of five new vehicles and the creation of more than 5,000 jobs.

The announcement comes amid President Donald Trump‘s efforts to create more manufacturing jobs in the U.S. through the use of aggressive tariffs, especially for the automotive industry. The company said the plans expand those Stellantis Chair John Elkann detailed to Trump in January.

— CNBC’s Michael Wayland contributed to this report.