Stellantis accelerated its electrification strategy in the second quarter of 2026, reporting a 20 percent year-on-year increase in global battery electric vehicle (BEV) and low-emission vehicle sales, while low-emission vehicles accounted for 29 percent of total sales, underscoring growing customer demand for electrified mobility across key markets.
The automaker generated €43.48 billion in second-quarter net revenues, an increase of 13 percent from a year earlier, driven by stronger vehicle shipments and improved market performance. Adjusted operating income (AOI) more than tripled to €773 million from €213 million a year earlier, although it remained below analysts’ expectation of €914 million. The adjusted operating margin improved to 1.8 percent, and Stellantis reaffirmed its full-year guidance for mid-single-digit revenue growth and a low-single-digit adjusted operating income margin.
Chief Executive Officer Antonio Filosa said electrification remains central to Stellantis’ long-term strategy, even as the company adopts a more balanced approach between battery electric and hybrid vehicles. Stellantis plans to launch 60 new vehicle models by 2030, expanding its portfolio of BEVs and hybrid vehicles while improving product quality, reducing manufacturing costs and increasing market coverage.
Regional performance reflected strengthening demand for electrified vehicles. Revenue in North America increased 32 percent, supported by higher sales of Jeep and Ram models, while revenue in Europe remained broadly stable amid intense pricing pressure from Chinese electric vehicle manufacturers. Stellantis said its partnership with Leapmotor will play a key role in expanding its EV footprint in Europe, supported by the development of new vehicle platforms designed to compete with Chinese rivals on cost and technology.
The company’s first-half 2026 performance also highlighted continued growth in its automotive business. Combined vehicle shipments increased to 2.968 million units from 2.690 million units a year earlier, while net revenues rose 9.9 percent to €81.6 billion. Stellantis returned to profitability with net profit of €670 million, compared with a €2.256 billion net loss in the first half of 2025.
Investment in future electric vehicles remained strong. Research and development expenses increased 18.3 percent to €1.669 billion during the first half of 2026, driven by advanced engineering, product enhancements and next-generation vehicle programs. Total R&D expenditure reached €2.942 billion, although capitalized development spending declined because of asset impairments and the timing of new product development activities.
The automaker continues to reshape its electrification roadmap by moving away from hydrogen-powered vehicles. Profitability improved in 2026 following the non-recurrence of significant charges recorded in 2025 after the company discontinued its hydrogen fuel cell technology program, which had resulted in major impairments and write-offs.
Regulatory developments also supported earnings. Stellantis recorded a €317 million gain from renegotiated regulatory credit purchase commitments and recognized a €66 million gain related to changes in U.S. greenhouse gas regulations, reflecting an evolving emissions compliance landscape.
Despite the improving outlook, Stellantis identified market demand for electrified vehicles, government incentives for battery electric vehicles and tightening emissions regulations as key business risks. The company also expects €1.0 billion to €1.2 billion in U.S. tariff-related costs during 2026 but maintained its forecast for positive industrial free cash flow in 2027. Management believes continued EV sales growth, broader model availability, manufacturing efficiencies and sustained investment in electrified technologies will support the company’s long-term recovery and global electrification ambitions.
BABURAJAN KIZHAKEDATH
