Successive profit warnings sent European and American auto stocks plunging.

On Monday, Stellantis issued a profit warning. This conglomerate—uniting brands including Peugeot, Citroën, Opel, Fiat, and Chrysler—significantly lowered its full-year profitability forecast, citing the need to cut production and increase promotional spending amid a slowing and increasingly competitive automotive market. In a statement released today, the company said its adjusted operating profit margin for this year will narrow to between 5.5% and 7%, down by double digits from its prior forecast. Stellantis now also expects industrial free cash flow to range from negative €5 billion (US$5.6 billion) to negative €10 billion—reversing its earlier forecast of positive cash flow. The company further anticipates cutting production by 200,000 vehicles in the second half of the year to meet sales targets—a reduction twice as large as originally planned. Market anxiety was triggered: Stellantis’ share price plunged over 14%, hitting an intraday low not seen since December 2022. Aston Martin, the UK-based automaker, also revised down its full-year outlook today; its share price fell 23%, marking its largest single-day drop since May 1—and a staggering 37% decline year-to-date. Japan’s automotive giant Toyota saw its share price drop 7.6% today. Bad news from Europe’s auto sector continued to pile up. This month, Germany’s three largest automakers—Mercedes-Benz, Volkswagen, and BMW—also successively issued profit warnings. On the 20th, Mercedes-Benz revised its 2024 performance guidance, forecasting this year’s EBIT (earnings before interest and taxes) to be “significantly lower” than last year’s; its share price plunged 8% intraday. On the 28th, Volkswagen again lowered its profit expectations, sending its stock tumbling nearly 4%. BMW Group, meanwhile, downgraded its full-year earnings forecast to 6% on the 10th—down from its previous range of 8%–10%. Chinese automakers bucked the trend, with nine companies hitting daily trading limits While European automakers sank deep into a profit-warning quagmire and their share prices tumbled sharply, Chinese auto stocks surged against the broader A-share rally—delivering an outstanding performance. On September 30, buoyed by the broad A-share rally, 28 A-share auto-related stocks rose collectively. Among them, Altair, CIMC Vehicles, Lifan Technology, Great Wall Motors, Jiangling Motors, JAC Motors, ZOTYE Auto, Seres, and BAIC BluePark all hit the daily trading limit (10% up). Other companies posting gains above 8% included King Long Motor, Sinomach Automobile, Changan Automobile, Zhongtong Bus, Dongfeng Co., Ankai Bus, and BYD. Firms gaining between 6% and 8% included Haima Automobile, SAIC Motor, FAW Jiefang, Foton Motor, China Automotive Technology & Research Center, Jinbei Automobile, GAC Group, Yutong Bus, China Railway Materials, and China National Heavy Duty Truck.

After a staggering $180 billion loss, the world’s fourth-largest automaker seeks a comeback via China’s new-energy vehicle startups.

€2.1 billion relates to adjustments in the electric-vehicle supply chain: Stellantis previously announced the divestment of its 49% stake in NextStar Energy—the Canadian battery manufacturing joint venture with LG Energy Solution—with LG Energy Solution assuming full control of the plant. Another €5.4 billion covers quality-related remediation and restructuring costs: €4.1 billion stems from revised warranty cost estimates due to inflationary pressures and deteriorating product quality, while €1.3 billion covers expenses tied to expanded layoffs across Europe. Delivering such results was, therefore, hardly unexpected. Antonio Filosa, Stellantis’ newly appointed CEO, acknowledged that the group’s full-year 2025 performance reflects two key costs: “Our full-year 2025 results reflect the costs associated with having overestimated the pace of the energy transition—and the need to restructure our business so customers can freely choose across our full portfolio of electric, hybrid, and internal-combustion technologies.” This also implies that, even excluding restructuring impacts, Stellantis’ underlying operational performance—though better than the headline figures suggest—remains far from healthy. Consider several core metrics: In 2025, Stellantis sold 5.417 million vehicles globally, a marginal 1% year-on-year increase, retaining its position as the world’s fourth-largest automaker. Its full-year net revenue stood at €153.5 billion—down 2% from €156.8 billion in 2024. Stellantis attributes this revenue decline to foreign-exchange headwinds in the first half and falling new-vehicle prices dragging down overall revenue. Moreover, even its adjusted operating profit landed in the red—posting a loss of €842 million, a 110% plunge year-on-year—while its corresponding profit margin collapsed from 5.5% to -0.5%. Unmistakably, profitability deteriorated markedly versus the prior year: Operating cash flow turned negative at €4.65 billion, compared to positive €1.53 billion in 2024. Nonetheless, Stellantis remains optimistic: “In the second half, we observed initial positive signs—including early results from our quality improvement initiatives, successful launches of new model lines, and a recovery in sales volume.” Data confirms a clear rebound in Stellantis’ operations during H2 2025: Net revenue reached €79.247 billion, up 10% year-on-year; global consolidated shipments totaled 2.82 million units, up 11%. North America contributed the largest incremental gain—adding 231,000 units, a 39% year-on-year surge. Stellantis reiterated its full-year 2026 outlook, forecasting gradual improvement across all financial metrics. Sales are expected to grow at a mid-single-digit percentage rate; on operating margin, the company aims for a low-single-digit adjusted operating profit margin. 02 Relying on China’s New-Energy Vehicle Startups On paper, 2025 was undoubtedly Stellantis’ most painful year. Yet for a conglomerate generating over €150 billion in annual revenue, the true litmus test isn’t one year’s profit or loss—it’s whether its strategic transformation succeeds.

Ecovyst (ECVT) Raises 2026 Adjusted EBITDA Outlook to $208M–$212M

4 days ago

Ecovyst increased its 2026 adjusted EBITDA forecast to $208M–$212M, citing strong Q3 sales and the Calabrian acquisition. Performance was further supported by sulfur-cost pass-through strategies and robust operating cash flow.

TradingView

2026-01-02

Technip completes acquisition of Ecovyst advanced materials, catalysts business

2026-02-26

Ecovyst beats estimates on stronger sulfuric acid volumes

2026-03-04

Symrise Expects Further Organic Sales Growth Despite 2025 Earnings Decline

2026-04-03

OCP reports strong revenue growth amid robust global phosphate demand

2026-04-04

Ecovyst Inc Reports Q4 Earnings Beat, Highlights Refinery & Sulfuric Acid Growth