Stellantis N.V.

Ladies and gentlemen, welcome to the Stellantis first quarter 2025 shipments and revenues call. I will now hand you over to your host, Mr. Ed Dittmeier, Head of Investors Relations at Stellantis. Mr. Dittmeier, please go ahead.

Hello, everyone, and thank you for joining us today as we review Stellantis' Q1 2025 shipments and revenue update. Earlier today, the presentation for this call, along with the related press releases, were posted under the investor section of the Stellantis website. Our call is hosted today by Doug Osterman, Chief Financial Officer at Stellantis, and after prepared remarks, he will be available to answer questions from the analysts. Before he begins, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor Statement included in page two of today's presentation. As customary, the call will be governed by that language. Now I'll hand the call over to Doug.

Thank you, Ed, and hello to everyone. Thank you for joining the call today. The theme at the top of the page is focused on execution, which I think is a way of saying that we're focused on things that we can control amidst what is a very turbulent backdrop. There are three important topics we want to cover today. First is the top line performance in Q1 in terms of revenue and shipments. which was difficult and not where we want to be. At the same time, we are seeing important progress resulting from our commercial recovery actions. Second, we're executing well on the start of our 2025 new product wave, filling in product gaps and expanding our opportunities. And third, I'll discuss how the company is positioned vis-a-vis the tariff dynamic and the management team's focus on reducing these impacts. now let's look at a summary of today's presentation first in terms of the top line results we had challenging year-over-year comparisons in the period shipments of 1.22 million units were down nine percent while revenues of 36 billion euros were down 14 percent at the same time we were encouraged by initial progress on our commercial recovery efforts for example Our EU30 market share is edging higher, and the U.S. is seeing improvement in retail order intake. A big contributor is our new product wave. Q1 saw strong launch execution with three all-new products kicking off in Europe, along with three refreshed products, including the RAM heavy-duty. Turning, of course, to the issue of the day with tariffs, we are taking actions to protect the company in the short term, including temporary shutdowns and layoffs, while engaging with relevant governments on the policies themselves. Stellantis, of course, appreciates the tariff relief measures decided by President Trump this week, and we're assessing the impact of the updated policy on our North American operations. I'll talk a little bit more about that later in the presentation. Nonetheless, we remain subject to extreme uncertainties. The policy framework on tariffs has shifted since we initially set our 2025 expectations. and is continuing to evolve. And so we're taking what we believe is the appropriate step of temporarily suspending our financial guidance. I'll come back to the tariffs and guidance later in my prepared remarks, but now let's go into more detail on what occurred in Q1 of 2025. First, let's talk about how we're executing on our commercial recovery actions. We said last quarter the recovery will be driven in large part by product, with 10 all new products planned in 2025, as well as full year benefits from the many that were launched in 2024. The first three of the all new products, the B segment Fiat Grande Tanda, the Citroen C3 Aircross, and the Opel Vauxhall Frontera began production in February, filling in product gaps where predecessor products have been out of the market for several quarters. The first quarter also saw the launch of the updated Ram 25 and 3500 medium and heavy duty trucks and the refreshed Opel Vauxhall Mokka. We said last year we had to improve the timeliness of our new product launches after a 2024, which frankly saw too many delays. And I'm happy to report that in Q1, execution was very consistent with our latest planning. Next, let's look at how our new products and other go-to-market improvements are driving our recovery. In Europe, where we've now launched seven major all-new products in the last six months, we've begun to see sequential market share improvement. Q1 2025 share of 17.3% was 190 basis points higher than Q4 of 2024, and in fact, was the highest quarterly level since Q1 of 2024. European shares improved particularly in electrified products as Stellantis climbed to the number one position in hybrids in Q1 and climbed to the number two in BEVs. With Q2 to benefit more fully from the new B segment products, we have the opportunity to continue our market share momentum in Europe. Turning to the United States, the commercial recovery is at an earlier stage. After successfully reducing inventories and recalibrating pricing in the second half of 2024, The company is seeing improvement in the retail channel in key nameplates like the Jeep Grand Cherokee and the Compass, and in Ram light and medium duty trucks. We're also seeing strong retail order intake from our dealers. Overall, I'd say we're seeing encouraging progress on the commercial recovery. Now let's turn to the shipment and revenue comparisons. Consolidated shipments fell 118,000 units, or 9% year-over-year, to 1.22 million. And let's break that down a bit geographically. A little over 80,000 units of the decline was in North America, where shipments fell 20% year-over-year, much more steeply than the sales, due primarily to a later start of production in certain factories in January after extended downtimes. and secondarily due to the transition to refreshed and upgraded RAM 2500 and 3500 models. The remainder of the shipment decline, almost 40,000 units, was driven by Europe, where shipments declined primarily due to product transition gaps, and particularly from the ICE Fiat 500, which remains on hiatus until very late in this year. And to a lesser degree, products like the Citroen C3 Aircross and Opel Vauxhall Frontera, which were reintroduced in mid Q1, but of course will have a bigger impact on our volumes in Q2. On the next page, let's turn to the revenue bridge to understand the larger 14% revenue decline in more detail. In addition to the 9% decline in vehicle shipments, total mix contributed an additional point of headwind mostly due to the fact that the North America region, with the company's highest average selling prices, had lower shipment trends than the group as a whole. Next, pricing contributed three points of additional headwind, mostly again for North America, which was six points lower than the first quarter of 2024, before that region adjusted and recalibrated pricing late last year. Pricing was relatively flat sequentially in Q1 2025 versus where we ended Q4 2024, both at the group level and in North America specifically. And lastly, a decline in other of negative 0.4 billion euros is primarily from the decon consolidation of Comal revenues.