Stellantis Shares Surge as Turnaround Strategy Gains Traction

The Chrysler and Jeep owner reported adjusted operating income of 256 million euros, a 184 percent increase from the 90 million euros recorded during the same period last year. Industrial free cash flow improved to negative 4 billion euros, narrowing the gap from the previous year's negative 4.3 billion. Most crucially for the market, the company reaffirmed its 2026 guidance and maintained its target of achieving positive free cash flow by next year.

RBC Capital Markets analyst Tom Narayan noted that while the quarter itself remained soft, the results comfortably beat low consensus expectations. Narayan highlighted that the company's commitment to its long-term financial targets contrasts with widespread spending cuts occurring across other automotive OEMs and suppliers. Despite the double-digit rally in New York and a 9 percent gain in Milan, the stock price remains significantly lower than its valuation at the start of the year.