Stellantis shares rose 13% on Wednesday after the automaker reported third-quarter results that it said showed progress on its 60 billion euro turnaround plan. The stock closed at $4.69 on the New York Stock Exchange. Shares in Milan closed at 4.28 euros, up 15.4%.
Third-quarter revenue rose 1% from a year earlier to 37.6 billion euros, the company said. Adjusted operating income rose 184% to 256 million euros, up from 90 million euros a year earlier. Industrial free cash flow was negative 4 billion euros, compared with negative 4.3 billion euros the year before.
Stellantis also reconfirmed its 2026 guidance and its target of positive free cash flow in 2027. CEO Antonio Filosa told investors the company is ahead of schedule on the plan, which was announced in May. He said Stellantis expects to exceed its previously announced cost-cutting goal of 6 billion euros by 2028, including 2.4 billion euros to start 2027.
RBC Capital Markets analyst Tom Narayan wrote in an investor note that "Q3 was soft, but consensus expectations were far lower." He added that the maintained 2026 guidance stood out while other automakers and suppliers are cutting on elevated costs.
The turnaround plan includes 36 billion euros of investment in the company's brands, with 60% directed to North America. Stellantis is targeting revenue of 190 billion euros by 2030, up from 154 billion euros last year, and a 7% adjusted operating margin by then.
Shares in both markets remain sharply down since the start of the year, according to the report.
Filosa also said European regulators need to do more to encourage carmakers to build vehicles in the region to compete with Chinese rivals. He called for rules that "incentivizes, rewards, and protects the ones that are able to demonstrate that they design cars, engineer cars."