Q4 2025 Stellantis NV Earnings Call

February 26, 2026

Operator: Results 2025 Call. You will have the opportunity to ask questions at the end of the call by typing pound key 5 on your telephone keypad. Please do not exceed 1 question per person, and if necessary, an additional 1. I now give the floor to Mr. Ed Ditmire, Head of Investor Relations, to begin today's conference. Sir, the floor is yours.

Speaker #1: Results 2025 call. You will have the opportunity to ask questions at the end of the call by typing "palm key 5" on your telephone keypad.

Speaker #1: Please do not exceed one question per person, and, if necessary, an additional one. I now give the floor to Mr. Ed Ditmire, Head of Investor Relations, to begin today's conference.

Speaker #1: Sir, the floor is yours.

Speaker #2: Thank you, Tibo. Hello everyone, and thank you for joining us today as we review Stellantis's full year 2025 results. Earlier today, the presentation material for this call, along with the related press release, were posted under the Investors section of the Stellantis Group website.

Ed Ditmire: Thank you, Thibault. Hello, everyone, thank you for joining us today as we review Stellantis' full year 2025 results. Earlier today, the presentation material for this call, along with the related press release, were posted under the Investors section of the Stellantis group website. Today, our call is hosted by Antonio Filosa, Chief Executive Officer, and João Laranjo, Chief Financial Officer. After their prepared remarks, Antonio and João will be available to answer questions from the analysts. Before we begin, 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 on page 2 of today's presentation. As customary, the call will be governed by that language. I'll hand over the call to Antonio Filosa, Chief Executive Officer, Stellantis.

Speaker #2: Today, our call is hosted by Antonio Filosa, Chief Executive Officer and Joao Laranho. Chief Financial Officer. After their prepared remarks, Antonio and Joao will be available to answer questions from the analysts.

Speaker #2: Before we begin, 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 on page 2 of today's presentation.

Speaker #2: As customary, the call will be governed by that language. Now, I'll hand over the call to Antonio Filosa, Chief Executive Officer Stellantis.

Speaker #3: Thank you, Ed. Thank you very much. And thank you all for joining us today. What we will discuss today will be familiar to you from our preliminary results announcement of February 6.

Antonio Filosa: Thank you, Ed. Thank you very much. Thank you all for joining us today. What we will discuss today will be familiar to you from our preliminary results announcement of 6 February. In summary, first, our return to top-line growth in H2 2025. Second, the decisive reset we announced on 6 February, which by putting the customer back at the center of everything we do, will enable our return to profitable growth. Third, after this reset, 2026 is our year of execution. What we are committed to deliver is progressive performance improvements on all of our business KPIs. As you can see, we have a very full agenda, so let's get started. First, just a quick summary of what we will talk about. 2025 was a year of reset, with results that reflect the considerable cost of needed changes.

Speaker #3: In summary, first, our return to top-line growth in H225. Second, the decisive reset we announced on February 6th, which by putting the customer back at the center of everything we do, will enable our return to profitable growth.

Speaker #3: And third, after this reset, 2026 is our year of execution. What we are committed to deliver is progressive performance improvements on all of our business KPIs.

Speaker #3: As you can see, we have a very full agenda, so let's get started. First, just a quick summary of what we will talk about.

Speaker #3: 2025 was a year of reset. We have results that reflect the considerable cost of needed changes. But H225 also showed encouraging first signs of the benefits of that reset.

Antonio Filosa: H2 2025 also showed encouraging the first signs of the benefits of that reset. We returned to top-line growth in H2 2025, and that momentum has carried over into early 2026. For example, in January 2026, our US market share was up year-over-year, and European shares saw a sequential increase compared to H2 2025. Our decisive reset around our customer preferences will drive profitable growth. Let me give you just two examples of what this means in practice. Number one, after the return to the ICE muscle car segment, this week, we have started production on three new Dodge Charger SIXPACK variants. Those will represent 90% of the expected volumes.

Speaker #3: We returned to top-line growth in H225. And that momentum has carried over into early 2026. For example, in January 2026, our US market share was up year over year, and European share saw a sequential increase compared to H225.

Speaker #3: Our decisive reset around our customer preferences will drive profitable growth. And let me give you just two examples of what this means in practice.

Speaker #3: Number one, after the return to the easy muscle car segment, this week we have started production on three new Dodge Charger six-pack variants. Those will represent 90% of the expected volumes.

Speaker #3: Number two, our global offensive to improve quality started very strong. We have one month in service over 50% improvement in North America, over 30% improvement in Europe, and 20% improvement in South America since 2025.

Antonio Filosa: Number 2, our global offensive to improve quality started very strong, with 1 month in service, over 50% improvement in North America, over 30% improvement in Europe, and 20% improvement in South America since 2025. Let me ask now, João, to walk you through the numbers.

Speaker #3: Let me ask now Joao to walk you through the numbers.

Speaker #4: Thank you, Antonio. Good afternoon and good morning, everyone. Let me start with the financial figures for the full year 2025, on page 7, which reflect a time of reset for the company.

João Laranjo: Thank you, Antonio. Good afternoon, and good morning, everyone. Let me start with the financial figures for full year 2025 on page 7, which reflect a time of reset for the company. Consolidated shipments of 5.5 million units were up 1%, with increases in South America, North America, and Middle East and Africa. Net revenues of EUR 153 billion were 2% lower year-over-year. AOI margin was negative at 0.5%. These reflected the early stage of our recovery and substantial net tariff expenses, as well as a number of specific items. Our adjusted diluted earnings per share reflect our decline in AOI, and our industrial free cash flow saw outflows of EUR 4.5 billion for the full week.

Speaker #4: Consolidated shipments of 5.5 million units were up 1%, with increases in South America and North America and Middle Eastern Africa. Net revenues of $153 billion were 2% lower year over year.

Speaker #4: AOI margin was negative at 0.5%. This reflected the early stage of our recovery. And substantial net tariff expenses as well as a number of specific items.

Speaker #4: Our adjusted diluted earnings per share reflect our decline in AOI. And our industrial free cash flow saw outflows of $4.5 billion for the full year.

Speaker #4: For net revenues, overall, a challenging picture for the full year. We have a negative 2% year over year comparison. But encouraging second half at plus 10%.

João Laranjo: For net revenues, overall, a challenging picture for the full year, with a negative 2% year-over-year comparison. An encouraging second half at plus 10%, particularly where it comes down to two elements, most under our control: volume and pricing. The H2 net price improvement is driven by increases in North America and Middle East and Africa, partially offset by negative net pricing in Europe. As you can see here, FX headwinds were even stronger in the second half, especially due to the Turkish lira. Keeping our focus on the second half, we look at the AOI walk. Here, we see the beginnings of improved results. First, in the form of top-line bridge factors like volume and net pricing.

Speaker #4: Particularly, where it comes down to two elements, most under our control. Volume and pricing. The H2 net price improvement is driven by increases in North America and Middle Eastern Africa.

Speaker #4: Partially offset by negative net pricing in Europe. And as you can see here, effects headwinds were even stronger in the second half, especially due to the Turkish lira.

Speaker #4: Keeping our focus on the second half, we look at the AOI walk. Here, we see the beginnings of improved results. First, in the form of top-line bridge factors like volume and net pricing.

Speaker #4: At the same time, on the cost side, H2 results were subject to a list of specific items which more than offset both the top-line positives of volume price as well as improvement of other more foundational industrial costs which were moving in the positive direction.

João Laranjo: At the same time, on the cost side, H2 results were subject to a list of specific items, which more than offset both the top line positives of volume price, as well as improvement of other more foundational industrial costs, which were moving in the positive direction. Most of these items, called out in orange, are not expected to be repeated. FX headwinds were nearly EUR 1 billion negative to AOI. This was driven overwhelmingly by the Turkish lira devaluation, which was partially offset in the period by net price improvement in that region. Turning to the industrial free cash flow, both full year and H2 showed improvements. This was largely due to improved working capital and lower capital expenditures. H2 industrial free cash flow of negative EUR 1.5 billion represented a 50% sequential improvement compared to H1 2025, and 73% year-over-year improvement.

Speaker #4: Most of these items called out in orange are not expected to be repeated. Next, FX headwinds were nearly $1 billion negative to AOI. This was driven overwhelmingly by the Turkish lira devaluation, which was partially offset in the period by net price improvement in that region.

Speaker #4: Turning to the industrial free cash flow, both full year and H2 showed improvements. This was largely due to improved working capital and lower capital expenditures.

Speaker #4: H2 industrial free cash flow of negative $1.5 billion represented a 50% sequential improvement compared to H1 2025 and 73% year over year improvement. Our cash flow is now moving the right direction.

João Laranjo: Our cash flow is now moving the right direction, of course, returning it to positive is the objective moving forward. Now, on new vehicle inventory. 2025 was a year of strong inventory discipline in terms of the relationship between stocks and sales. The stock levels increased in absolute terms towards year-end, aligned with sales growth, plus new white space products that began shipping to dealers. Lastly, I would mention here North America and European order books, both finishing 2025 at 3 months of sales. Now, turning to our regional review, where I will focus on the second half. In H2 2025, shipments saw increases in all regions year-over-year. North America posted the strongest contribution, a 39% increase in shipments, and a 31% increase in revenues, reflecting the benefits of normalized inventory dynamics as well as higher sales.

Speaker #4: But of course, returning it to positive is the objective moving forward. Now, on new vehicle inventory. 2025 was a year of strong inventory discipline.

Speaker #4: In terms of the relationship between stocks and sales, the stock levels increased in absolute terms towards year-end aligned with sales growth. Plus new white space products that began shipping to dealers.

Speaker #4: Lastly, I would mention here North America and European order books both finishing 2025 at three months of sales. Now, turning to our regional review where I will focus on the second half.

Speaker #4: In H2 2025, shipments saw increases in all regions year over year. North America posted the strongest contribution at 39% increase in shipments and a 31% increase in revenues reflecting the benefits of normalized inventory dynamics as well as higher sales.

João Laranjo: North America H2 AOI improvement versus prior year was driven by higher volumes in pricing, partially offset by higher industrial costs, mainly tariffs. In larger Europe, H2 AOI decrease versus prior year was driven by higher LEV mix and net pricing decline due to the strong competitive environment. The South America H2 AOI decline versus prior year was due to some increase in costs. Lastly, in Middle East and Africa, shipments had solid growth, driven by increased Stellantis production in Algeria, as well as a strong Turkish market. However, margins declined, primarily due to the very competitive market environment in Turkey, which prevented FX pressures from being fully offset by net price increase. Moving to our summary financial figures table, there are a couple of things I want to point out.

Speaker #4: North America H2 AOI improvement was prior year was driven by higher volumes and pricing partially offset by higher industrial costs mainly tariffs. In large Europe, H2 AOI decreased was prior year was driven by higher LEV mix and net pricing decline due to the strong competitive environment.

Speaker #4: The South American H2 AOI decline was prior year was due to some increasing costs. Lastly, in Middle Eastern Africa, shipments had solid growth driven by increase in Stellantis production in Algeria as well as strong Turkish market.

Speaker #4: However, margins declined primarily due to the very competitive market environment in Turkey, which prevented effects pressures from being fully offset by net price increases.

Speaker #4: Moving to our summary financial figures table, there are a couple of things I want to point out. Our net loss of $22 billion primarily reflects our strategic shift to adjust to customer preference and in response to changes in the US regulatory framework.

João Laranjo: Our net loss of EUR 22 billion primarily reflects our strategic shift to adjust to customer preference and in response to changes in the US regulatory framework. The net loss was steep, but most of the impact was non-cash, and therefore, the company's balance sheet ended the period in a strong place. Our industrial liquidity finished at approximately EUR 46 billion, 30% of revenues at the upper end of the company's target range. Looking ahead to 2026 now. As Antonio mentioned in his opening remarks, we are confirming our 2026 financial guidance laid out at 6 February. As previously disclosed, we will start reporting full year earning results on a quarterly basis, something which I know many analysts and investors have been asking for. There are also some changes in our segment reporting.

Speaker #4: The net loss was steep, but most of the impact was non-cash and therefore the company's balance sheet ended the period in a strong place.

Speaker #4: Our industrial liquidity finished at approximately $46 billion 30% of revenues at the upper end of the company's target range. Looking ahead to 2026 now, as Antonio mentioned in his opening remarks, we are confirming our 2026 financial guidance laid out at February 6th.

Speaker #4: As previously disclosed, we will start reporting full year earnings results on a quarterly basis something which I know many analysts and investors have been asking for.

Speaker #4: There are also some changes in our segment reporting. Most importantly, we will integrate the Maserate business into the regional segments in the way that is consistent with all of the other brands.

João Laranjo: Most importantly, we will integrate the Maserati business into the regional segments in the way that is consistent with all of the other brands. To help analysts and investors prepare for how we will report in 2026 and beyond, we will publish in March an updated financial reference sheet, which shows the updated segments and quarterly earning results for 2025. I will now hand you back to Antonio.

Speaker #4: To help analysts and investors prepare for how we will report in 2026 and beyond, we'll publish in March an updated financial reference sheet which shows the updated segments and quarterly earnings results for 2025.

Speaker #4: I will now hand you back to Antonio.

Speaker #1: Thank you, Joel. Let's talk more about our return to growth in H2 '25 and the actions we have taken to keep that momentum into '26.

Antonio Filosa: Thank you, João. Let's talk more on our return to growth in H2 2025 and the actions we have taken to keep that momentum into 2026. First, let's discuss how the company is returning to top-line growth in H2. Let's start exactly where we began, with our North American inventory management. The discipline we reestablished at the end of 2024, when we cleared accumulated inventory, was carefully maintained in 2025, and now we see rewards for that. US dealer supplies ended the year at 69 days, a very healthy number. At the same time, we made good progress with our net pricing. That was up 2% year-over-year in H2 2025. With these healthier dynamics, we are seeing year-over-year improvements in both sales and net revenues. Let's move to the actions we said we would take in 2025 to strengthen the business.

Speaker #1: First, let's discuss how the company's returning to top-line growth in H2. Let's start exactly where we began. With our North American inventory management, the discipline we re-established at the end of 24 when we cleared accumulated inventory was carefully maintained in 25.

Speaker #1: And now we see rewards for that. US daily supplies ended the year at 69 days, a very healthy number. At the same time, we made good progress with our net pricing that was up 2% year over year in H2 25.

Speaker #1: With this healthier dynamics, we are seeing year over year improvements in both sales and net revenue. Now let's move to the actions we said we would take in 25 to strengthen the business.

Speaker #1: On growth, we launched 10 all-new products in 25. Among them, the return of the Jeep Cherokee in the midsize SUV segment. The largest segment in the world.

Antonio Filosa: On growth, we launched 10 all-new products in 2025. Among them, the return of the Jeep Cherokee in the mid-size SUV segment, the largest segment in the world. We also progressed in the rollout of our Smart Cars in Europe, and the Ram Dakota launch in South America that addresses the mid-size truck segment, home of the region's largest profit pool. On execution, we launched a deep reset of our quality organization, hiring over 2,000 new engineers to drive improvement. Finally, on profitability, we will increase production of the HEMI V8 engine by 100,000 units in 2026. We already relaunched the SRT division in the US, and in Europe, we will benefit mixed gains with the recent introduction of Fiat 500 Hybrid. These are only a few actions among many that will lay down strong foundation for 2026 results.

Speaker #1: We also progressed the rollout of our smart cars in Europe. And Ram Dakota launched in South America that addresses the midsize truck segment home of the region's largest profit pool.

Speaker #1: On execution, we launched a deep reset of our quality organization hiring over 2,000 new engineers to drive improvement. And finally, on profitability, we will increase production of the MEV-8 engine by 100,000 units in 26.

Speaker #1: We already relaunched the SRT division in the US and in Europe we will benefit mixed gains with the recent introduction of Fiat 500 hybrid.

Speaker #1: These are only a few actions among many that we lay down strong foundation for 26 results. So let's look at the early effects of those actions.

Antonio Filosa: Let's look at the early effects of those actions. Looking at the combination of Europe and North America, starting from the left, you see net revenues in Europe and North America up 13%. In the same period, order portfolio, North America and Europe combined, is up 46%, with North America up 150% and Europe up 18%. Looking at the rest of the world, where performance was always and already strong, we see their commercial strength keeping momentum. Turning to industrial free cash flow. We are making progress from a very difficult place, sequentially improving in each of the last two halves. We expect that progress will continue in 2026 and 2027, when we expect industrial free cash flow to turn positive.

Speaker #1: Looking at the combination of Europe and North America, starting from the left, you see net revenues in Europe and North America up 13%. In the same period, order portfolio in North America and Europe combined is up 46%.

Speaker #1: With North America up 150% and Europe up 18%, and then looking at the rest of the world, where performance was always and already strong, we see their commercial strength keeping momentum.

Speaker #1: Now turning to industrial free cash flow. We are making progress from a very difficult place. Sequential improving in each of the last two halves.

Speaker #1: We expect that progress will continue in 26 and 27 when we expect industrial free cash flow to turn positive. Okay. So now that we have covered how we started the journey in 25, let's talk about the important changes we made to position the business for long-term profitability.

Antonio Filosa: Okay, now that we have covered how we started the journey in 25, let's talk about the important changes we made to position the business for long-term profitability. Starting in the US, we are investing to dramatically improve our market coverage while improving the utilization of our US manufacturing footprint. This $13 billion investment over 4 years is a strategic long-term business decision designed to drive big growth. Under this plan, we will introduce 5 new vehicles and complete the renewal of our current lineup with 19 additional product actions. At the same time, we will deliver to our customers freedom of choice in powertrains with innovative new ICE, BEV, hybrids, and range-extended products.

Speaker #1: Starting in the US, we are investing to dramatically improve our market coverage while improving the utilization of our US manufacturing footprint. This $13 billion investments over four years is a strategic long-term business decision designed to drive big growth.

Speaker #1: Under this plan, we will introduce five new vehicles and complete the renewal of our current lineup with 19 additional product actions. At the same time, we will deliver to our customers freedom of choice in powertrains with innovative new ISI, BEV, hybrids, and range-expanded products.

Speaker #1: And it is exactly that freedom of choice that takes us to the next slide. And why on February 6th we announced the profound reset that puts the customer back at the center of everything we do.

Antonio Filosa: It is exactly that freedom of choice that takes us to the next slide, and why on 6 February, we announced the profound reset that puts the customer back at the center of everything we do. We have reset our organization to empower the regional teams, reset our stakeholder relationships so that we can address challenges together, reset our product plan and EV supply chain to reflect real-world customer demand, and we are resetting our manufacturing and quality processes to deliver to our customers the experience that they deserve. Now, let's turn to 2026, the year of the execution. First, let's look at our ongoing product wave, which is critical to enable growth.

Speaker #1: We have reset our organization to empower the regional teams; reset our stakeholder relationships so that we can address challenges together; reset our product plan and EVP supply chain to reflect real-world customer demand; and we are resetting our manufacturing and quality processes to deliver to our customers the experience that they deserve.

Speaker #1: Now let's turn to 2026, the year of the execution. First, let's look at our ongoing product wave, which is critical to enable growth. In '26, we will benefit strongly from a long list of new products launched in late '25.

Antonio Filosa: In 2026, we will benefit strongly from a long list of new product launches in late 2025 that address wide spaces of the market, with several more being introduced in early 2026. Our product wave paves the way for us to grow in the right segments. For example, it includes our midsize SUV offensive in the US, the largest segment of the world, with our all-new 2026 Jeep Cherokee. Also, our C-SUV offensive in Europe, which is the largest profit pool there, now strengthened by the all-new Jeep Compass and Citroën C5 vehicles. With this next slide, I just want to highlight two new models recently announced by Ram. These show the quick and decisive actions we have taken to connect again with buyers. The return of the TRX, with 777 horsepower from its supercharged HEMI V8... and immensely capable power vehicle.

Speaker #1: That addresses wide spaces of the market with several more being introduced in early 26. Our product wave paves the way for us to grow in the right segments.

Speaker #1: For example, it includes our midsize SUV offensive in the US, the largest segment of the world with our all-new 26 Jeep Cherokee, also our C SUV offensive in Europe.

Speaker #1: Which is the largest profit pool there now strengthened by the all-new Jeep Compass and Citroën C5 Aircross. With these next slides, I just want to highlight two new models recently announced by RAM.

Speaker #1: These show the quick and decisive actions we are taking to connect again with buyers. The return of the TRX with 777 horsepower from its supercharger MEV-8 and immensely capable power vehicle—those are examples of products that bring next-level performance and next-level appeal to some of our most demanding customers.

Antonio Filosa: Those are examples of products that bring next level performance and next level appeal to some of our most demanding customers. Next, the Jeep 12 4 12 program represents an exciting reinvigoration of our Jeep Wrangler franchise, with monthly drops of special editions. The latest, the Wrangler Willys 392, has been exceptionally well received, combining the HEMI V8 power with a more affordable price. Now, a couple important topics outside the US, starting with Leapmotor. We had an incredible first full year of the partnership, with around 50,000 units shipped in 2025. We are accelerating across multiple dimensions. We continue our commercial expansion in Europe, not only with additional products, but with local production in our plant in Spain, planned to start in the second half of 2026.

Speaker #1: Next, the Jeep 12412 program represents an exciting reinvigoration of our Jeep Wrangler franchise, with monthly drops of special editions. The latest, the Willys 392, has been exceptionally well received, combining the MEV-8 power with a more affordable price.

Speaker #1: Now a couple of important topics outside the US, starting with LEAP model. We added incredible first full year of the partnership with around 50,000 units shipped in 25.

Speaker #1: And we are accelerating across multiple dimensions. We continue our commercial expansion in Europe, not only with additional products, but with local production in our plant in Spain.

Speaker #1: Planning to start in the second Alpha 26. These will be followed by South America, where we intend to start local production in our Pernambuco o plant with big commercial expansion there too.

Antonio Filosa: These will be followed by South America, where we intend to start local production in our Pernambuco plant, with big commercial expansion there, too. Stay tuned. Next, let's turn to the Smart Car platform. Those vehicles that are becoming a bigger part of what we do, both in Europe and in the rest of the world. This platform was designed to produce affordable, multi-energy vehicles. Those include Citroën C3, Citroën C3 Aircross, Fiat Grande Panda, and Opel Frontera, all already in the market. These Smart Car vehicles work very well, with 325,000 orders collected in 2025, and an order book which is up 80% year-over-year. We'll walk through high-level regional updates, starting with North America.

Speaker #1: So stay tuned. Next, let's turn to the smart car platform. Those vehicles that are becoming a bigger part of what we do both in Europe and in the rest of the world.

Speaker #1: This platform was designed to produce affordable multi-energy vehicles. Those include Citroën C3, Citroën C3 Aircross, Fiat Grande Panda, and Opel Frontera, all already in the market.

Speaker #1: The smart car vehicles go very well with 325,000 orders collected in 25 and an order book, which is up 80% year over year. Now we'll walk through high-level regional updates, starting with North America.

Speaker #1: As we have touched on, the return to growth was strongest in North America in H2, and the product wave will continue that momentum as we begin 26.

Antonio Filosa: As we have touched on, the return to growth was strongest in North America in H2. The product way will continue that momentum as we begin 2026. In H2, we achieved a 4% growth in sales, improved our market share by 20 basis points, grew our order book by 150%. Ram continues to be a huge long-term opportunity for us, with more details to come at our Investor Day in May. Europe. Here we continue to have strong positionings. Number two in overall share, number one in B-segment, number one in light commercial vehicles. Building on this, we have product tailwinds that will help us in each of the A, B, and C-segments in 2026. At the same time, the regulatory dynamics present real headwinds for the industry and our customers, in particular, in the light commercial vehicle business.

Speaker #1: In H2, we achieved a 4% growth in sales, improved our market share by 20 basis points, and grew our order book by 150%. RAM continues to be a huge long-term opportunity for us with more details to come at our investor day in May.

Speaker #1: Now Europe. Here we continue to have strong positionings. Number two in overall share, number one in B segment, number one in light commercial vehicles.

Speaker #1: Building on this, we have products tailwinds that will help us in each of the A, B, and C segments in 26. At the same time, the regulatory dynamics present real headwinds for the industry and our customers.

Speaker #1: In particular, in the light commercial vehicle business. The trajectory of electrification demanded by regulators for light commercial vehicles is nowhere near real market demand.

Antonio Filosa: The trajectory of electrification demanded by regulators for light commercial vehicle is nowhere near real market demand, and we continue urging practical solutions in our engagement with institutions and policymakers. Now for the rest of the world. South America continues to maintain its number one share position. The Ram Dakota launched in Argentina in December and will launch in Brazil in March, entering into the very attractive mid-size truck market. In Middle East and Africa, we have improved our market share and have seen shipment up 9%. We are deepening roots in the region by expanding local production. Lastly, in China and India, Asia Pacific, shipments saw growth up to 18% year-over-year. Well, a quick reminder of our upcoming Investor Day on 21 May, where we will communicate in detail our new strategic plan. The registration for this event is now open.

Speaker #1: And we continue urging practical solutions in our engagement with institutions and policymakers. Now for the rest of the world. South America continues to maintain its number one share position.

Speaker #1: The RAM Dakota launched in Argentina in December and will launch in Brazil in March, entering into the very attractive midsize truck market. In the Middle East and Africa, we have improved our market share and have seen shipments up 9%.

Speaker #1: We are deepening routes in the region by expanding local production. Lastly, in China and India, the Pacific, shipments so growth up to 18% year over year.

Speaker #1: Well, a quick reminder of our upcoming investor day on May 21st. Where we will communicate in detail our new strategic plan. The registration for this event is now open.

Speaker #1: You can register now online and we look forward to welcoming you in May to Obernills for virtually on the webcast. Before opening to your questions, let me recap the key points from today's presentation.

Antonio Filosa: You can register now online, and we look forward to welcoming you in May to Auburn Hills or visually on the webcast. Before opening to your questions, let me recap the key points from today's presentation. H2 2025 saw a return to top-line growth as we executed a deep reset of our business to put the customer back at the center of everything we do. As we move into 2026, which will be the year of execution, we expect to see progressive performance across all our business KPIs. Thank you. Now we'll ask our operator, Thibaut, to open up the line for questions.

Speaker #1: H225 saw a return to top-line growth as we executed a deep reset of our business to put the customer back at the center of everything we do.

Speaker #1: As we move into 26, which will be the year of execution, we expect to see progressive performance across all our business KPIs. Thank you.

Speaker #1: And now we'll ask our operator, Tibo, to open up the line for questions.

Speaker #2: Thank you. If you wish to ask a question, please type pound key five on your telephone keypad. Please do not exceed one question per person, and if necessary, a related follow-up.

Operator: Thank you. If you wish to ask a question, please type pound key 5 on your telephone keypad. Please do not exceed 1 question per person and, if necessary, a related follow-up. The first question comes from the line of José Asumendi from J.P. Morgan. Your line is open.

Speaker #2: Now, the first question comes from the line of José Asumendi from JP Morgan. Your line is open.

Speaker #3: Thank you very much. It's José JP Morgan. Thank you, Antonio. One question, one related follow-up. When it comes to Europe, it looks like you may need to take larger restructuring measures to turn the business profitable.

José Asumendi: Thank you very much. It's José, J.P. Morgan. Thank you, Antonio, for the job. One question, one related follow-up. When it comes to Europe, it looks like you might need to take larger restructuring measures to turn the business profitable. We see that market share is rebounding, thanks to the strong product lineup, but we could potentially argue that it's coming at the expense of incentives. Can you talk a bit about Europe and whether we need larger restructuring measures to turn the business into profit-making? A related follow-up.

Speaker #3: We see that market share is rebounding thanks to the strong product lineup. But you could potentially argue that it's coming at the expense of incentives.

Speaker #3: So can you talk to me about Europe and whether we need larger restructuring measures to turn the business into profit-making? And the related follow-up, we already obviously in the first quarter, do you think the US business is starting to turn the corner and bring profits?

Angelo Zino: ... obviously, you know, in Q1, do you think the US business is starting to turn the corner and bring profits? If you could give us any color there. Thank you.

Speaker #3: If you could give us any color there. Thank you.

Speaker #4: Okay. Thank you, José. Thank you very much for this very important question or the two main important and the largest regions that we manage around the world: Europe and North America.

Antonio Filosa: Okay. Thank you, José. Thank you very much for this very important question on the two main important and the largest regions that we manage around the world, Europe and North America. Let's start with Europe. As you said, very encouraging rebound on market share and on volumes in January. We see same results coming for February as well. We see very strong demand for Smart Car products, and those will be one of the foundation for profit building in Europe in 2026. We have an order portfolio which is very large, up 80% year-over-year. We also see our strong position, our immense strength in light commercial vehicle in Europe, where we have a dominating position in the market with a market share of around 30%. Obviously, this is the second lever for profit building in 2026.

Speaker #4: So let's start with Europe. As you said, very encouraging rebound of market share and on volumes. In January, we see the same results coming for February as well.

Speaker #4: We see very strong demand for smart car products. And those will be one of the foundations for profit-building in Europe in 2026. We have an order portfolio which is very large, up 80% year over year.

Speaker #4: We also see our strong position, our immense strength in light commercial vehicle in Europe. Where we have a dominating position in the market with a market share of around 30%.

Speaker #4: And obviously, this is the second lever for profit-building in 26. Obviously, Europe stays a tough environment. We have regulation still is unclear. And we are engaging the policymaker to talk about regulation mainly on light commercial vehicle, where we understand it is very urgent a change of rules.

Antonio Filosa: Obviously, Europe stays a tough environment, where regulation still is unclear. We are engaging the policymaker to talk about regulation, mainly on light commercial vehicle, where we understand it is very urgent, a change of rules. In North America, what we are seeing in January is, again, market share up, I believe, around 0.3 year-over-year. We see new products coming into the inventory of our dealers. Much expected Jeep Cherokee will be visible in March to our dealers. Charger Sixpack, where we have already launched the higher trim. We will complete the lineup of this important IC model with three additional trims. They will represent 90% of the total volume. Obviously, profit coming from additional production of trucks, light duty and heavy duty, and very strong demand of the V8 engine HEMI.

Speaker #4: In North America, what we are seeing in January is, again, market share up. I believe around 0.3 year over year. We see new products coming into the inventory of our dealers.

Speaker #4: Much expected Jeep Cherokee will be visible in March to our dealers. Charger six-pack, where we have already launched the higher trim and we will complete the lineup of these important IC model with three additional trims.

Speaker #4: They will represent 90% of the total volume. And obviously, profit coming from additional production of trucks. Light duty and heavy duty. And very strong demand of deviate engine Emmy.

Speaker #4: On the cost structure of Europe and North America, we are working a lot. Obviously, higher detail will be disclosed to you in the best of day.

Antonio Filosa: On the cost structure of Europe and North America, we are working a lot. Obviously, higher detail will be disclosed to you in the investor day. Thank you very much.

Speaker #4: Thank you very much.

Speaker #5: The next question comes from the line of Michael Tindall from HSBC. Your line is open.

Operator: The next question comes from the line of Michael Tyndall from HSBC. Your line is open.

Speaker #6: Yeah, hi. Thanks, Jens. I wonder if I could just ask one well, a couple, as it were. Just on operating leverage in North America, very, very strong shipment growth, circa 7 billion increase in revenue year on year.

Michael Tyndall: Yeah. Hi. Thanks, gents. I wonder if I could just ask one, well, a couple, as it were. Just on operating leverage in North America, very, very strong shipment growth, circa EUR 7 billion increase in revenues year-over-year, but the volume drop-through seemed to be quite low on that revenue. I wonder if this is part of the rebuilding relationships, whether that's means that the business is perhaps going to take a bit longer to get to that cadence in terms of operating leverage. Sort of related, South America, just on the Brazilian real impact on industrial performance, could you just unpack that a little bit for us? Is the cost base not in real, or is there some other factor there that's driving that?

Speaker #6: But the volume drop through seemed to be quite low on that revenue. I wonder if this is part of the rebuilding relationships whether that's means that the business is perhaps going to take a bit longer to get to that cadence in terms of operating leverage.

Speaker #6: And then sort of related, South America, just on the Brazilian real, impact on industrial performance. Could you just unpack that a little bit for us?

Speaker #6: Is the cost base not in real or is there some other factor there that's driving that? Just trying to figure out what happens going forward on the margins in South America.

Michael Tyndall: Just trying to figure out, you know, what happens going forward on the margins in South America. Thanks.

Speaker #6: Thanks.

Speaker #4: Perfect. Well, thank you very much for this question. So, what happened in Q4 '25 in North America is a very strong growth in volume, as you said.

Antonio Filosa: Perfect. Well, thank you very much for this question. What happened in H2 2025 in North America is a very strong growth in volume. As you said, this is very encouraging. This is commercial momentum that we will strongly carry on into 2026. We also had pricing up, as you mentioned. What we had is some mix effect driven by light-duty and heavy-duty truck production, a little constrained by technical issues that we have in the ramp-up of our plans that now we have basically entirely solved. What we see for 2026 is mix improvement driven by light-duty and heavy-duty additional production, mainly due to very high demand of the HEMI V8 engine. Also, mix will improve in 2026 because we will build and sell less PHEV.

Speaker #4: This is very encouraging. This is commercial momentum. That we will strongly carry on into 2026. We also had pricing up, as you mentioned. And what we had is some mixed effect driven by light duty and heavy duty truck production.

Speaker #4: A little constrained by technical issues that we have in the ramp-up of our plants that now we have basically entirely solved. So what we see for 2026 is mixed improvement driven by light-duty and heavy-duty additional production, mainly due to very high demand of the MEV8 engine.

Speaker #4: Also mixed with improving 26 because we will build and sell less PHEV. So those are the major driver of the growth for North America, in profitability in 26.

Antonio Filosa: Those are the major driver of the growth of North America in profitability in 2026, and this growth will be the largest contributor in the world for Stellantis profitability. Let's move to South America, which is your second part of your important question. In South America, in H2, we see 2 things. One, cost structure in Brazil, impacted by FX headwinds, and for 2026, we'll be keen in doing 2 things: reducing costs technically and recovering price difference. We go to Argentina. To Argentina, what we see in H2 2025 is price not fully recover the strong devaluation of the Argentinian pesos. That will be for sure the focus of 2026 of the team. South America is a big contributor to our profitability.

Speaker #4: And this growth will be the largest contributor in the world for Stellantis' profitability. Now, let's move to South America, which is your second part of your important question.

Speaker #4: So in South America, in H2, we see two things. One, cost structure in Brazil impacted by FX headwinds. A426 will be keen in doing two things.

Speaker #4: Reducing cost technically and recovering price the difference. Then we go to Argentina. And to Argentina, what we see in H225 is price not fully recovered.

Speaker #4: The strong devaluation of the Argentina pesos. And that will be for sure the focus of 26 of the team. Now, South America is a big contributor to our profitability.

Speaker #4: South America enjoys a very large leadership position in the market with us number one and number two which is less than half of our market share.

Antonio Filosa: South America enjoys a very large leadership position in the market, with us number one and number two, which is less than half of our market share. Based on that, we will build profitability for 2026, again, working on price and cost, both in Brazil and Argentina. Angelo, if you want to add something?

Speaker #4: Based on that, we will build profitability for 26. Again, working on price and cost, both in Brazil and Argentina. And João, if you want to add something.

Speaker #3: Just on South America, on the industrial cost, on the second half, there's prior year. There is also an impact of one of the specific items that we are communicating on February 6 and we repeated at this call.

Angelo Zino: Just on South America, on the industrial costs, on the second half last prior year.

João Laranjo: There is also an impact of the, one of the specific items that we communicate on 6 February, and we repeated at this call. It's a provision for a supplier, and part of that provision was recorded in South American industrial costs. There is a portion of the industrial cost negative impact in the second half of 2025, that it's not gonna carry over to 2026.

Speaker #3: It's a provision for a supplier and part of that provision was recorded in South American industrial cost. So there is a portion of the industrial cost negative impact in the second half of 2025 that it's not going to carry over to 26.

Speaker #4: Thank you.

Patrick Hummel: Thank you.

Itay Michaeli: Got it. Brilliant. Thank you.

Speaker #6: Got it. Brilliant. Thank you.

Operator: The next question comes from the line of Itay Michaeli from TD Cowen. Your line is open.

Speaker #5: The next question comes from the line of Ite Michaeli from Teddy Cohen. Your line is open.

Itay Michaeli: Great. Thank you, everyone. Wanted to ask a question on the mid-single digit revenue growth outlook for 2026. I was hoping you could provide a bit more color on some of the market assumptions for the US and Europe, as well as perhaps some of your market share assumptions. I ask because it seems like the outlook might be a little bit conservative, just relative to some of the US retail sales targets, at least we've seen reported out there for the companies. Hoping to get a little bit more detail on the assumptions behind that outlook. Thank you.

Speaker #7: Great. Thank you, everyone. I wanted to ask a question on the mid-single digit revenue growth outlook for 2026. I was hoping you could provide a bit more color on some of the market assumptions for the US and Europe, as well as perhaps some of your market share assumptions.

Speaker #7: I ask because it seems like the outlook might be a little bit conservative, just relative to some of the US retail sales targets, at least we've seen reported out there, for the companies.

Speaker #7: Hoping to get a little bit more detail on the assumptions behind that outlook. Thank you.

Speaker #3: Yes, first on the market assumptions, we are forecasting North America to be slightly down, about 2% year over year. In terms of total market.

João Laranjo: Yes, first on the market assumptions, we are forecasting North America to be likely down about 2% year-over-year in terms of total market. In Europe, about flat. As we talked before, Antonio also explained, the growth that we expect to see is on the back of the new vehicles. In North America, the HEMI and the Ram Express, the Jeep Cherokee, and the Dodge ICE Charger. In Europe, it's the finalization of the ramp up of the Smart Car. We are very excited about the demand that we are seeing on those products. That's basically what's gonna drive the revenue growth. I'm sure, Antonio, you want to add something here?

Speaker #3: In Europe, about flat. And as we talked before in Antonio also explained, the growth that we expect this year is on the back of the new vehicles.

Speaker #3: In North America, the Hemi and the Ram Express, the Jeep Cherokee, and the Dodge Ice Charger and in Europe, it's the penalization of the ramp-up of the smart car.

Speaker #3: So we are very excited about the demand that we are seeing on those products. And that's basically what's going to drive the revenue growth.

Speaker #3: So I'm sure Antonio, you want to add something here.

Speaker #4: No, you said it all. We are seeing a big response of the market on what we are launching. A lot of expectation for the Jeep Cherokee.

Antonio Filosa: No, you said it all. We are seeing a big response of the market on what we are launching. A lot of expectation for the Jeep Cherokee, a lot of expectation for the HEMI, a lot of expectation for Dodge Charger ICE. As I said, we are completing the lineup with additional three trims that we are launching this week. Within North America, in a context of, let's call it, stable industry, potential market growth available to us because of the new products, are all launching in wide spaces of the market for us. Thank you.

Speaker #4: A lot of expectation for the Hemi. A lot of expectation for Dodge Charge ICE, as I said, we are completing lineup with additional three trims that we are launching this week.

Speaker #4: So we see North America in a context stable industry. Potential market growth available to us because of the new products are all launching in white spaces of the market for us.

Speaker #4: Thank you.

Speaker #7: Terrific. Thank you.

Itay Michaeli: Terrific. Thank you.

Speaker #5: The next question comes from the line of Thomas Besson from Kepler Chevreux. Your line is open.

Operator: The next question comes from the line of Thomas Besson from Kepler Cheuvreux. Your line is open.

Speaker #6: Thank you very much. I have a couple of questions as well. Maybe circling back to the earlier questions and asking that a bit more bluntly.

Thomas Besson: Thank you very much. I have a couple of questions as well. Maybe circling back to the earlier questions and asking that a bit more bluntly, should we expect or can we hope to see your 2 main regions, North America and Europe, in positive territory, in 2026, in terms of AOI? This is the first question. The second, you've been building up your SFS, Financial Services, operation quite dynamically over the last couple of years. Could you please talk about the equity addition and profit contribution in 2025, and what we could expect, could it be a driver to help you effectively move back to profits in the US? Thank you.

Speaker #6: Should we expect or can we hope to see your two main regions, North America and Europe, in positive territory in 2026 in terms of AOI?

Speaker #6: This is the first question. And then the second, you've been building up your FS financial services operation quite dynamically over the last couple of years.

Speaker #6: Could you please talk about the equity addition and profit contribution in 2025 and what we could expect? Could it be a driver to help you effectively move back to profits in the US?

Speaker #6: Thank you.

Speaker #4: Well, thank you very much. I will take the first part of your question. I'll leave the second part to João. First part of the question, the answer is very easy, is yes, being North America the largest engine and the largest contributor for our 26 profitable growth for Stellantis in the world.

Antonio Filosa: Well, thank you very much. I will take the first part of your question, I'll leave the second part to Joao. First part of the question, the answer is very easy, is yes, being North America, the largest engine and the largest contributor for our 26 profitable growth for Stellantis in the world. Joao?

Speaker #4: And João?

Speaker #3: Yeah. So the first comment here is just to reinforce that we are fully committed with our financial sales and especially the financial sales in the US.

João Laranjo: Yeah, the first comment here is just to reinforce that we are fully committed with our financial services, and especially the financial services in US. We see that as a huge opportunity for growth, to support the OEM sales, increase loyalty, and obviously generate AOI and cash flow. We expect to grow in 2026. The X contribution that we are forecast for 2026, it's similar to what we have done net of dividends in 2025 for SFS overall. SFS globally in 2025 had impact of some of the specific items. Two of them, it's the UK fines and the behavior procedural. Definitely SFS will be a big contribution for the year-over-year profit improvement for Stellantis globally.

Speaker #3: We see that as a huge opportunity for growth to support the OEM sales. Increased loyalty and obviously generate AOI and cash flow. We expect to continue to grow in 2026.

Speaker #3: The ex-contribution that we are forecast for 2026, it's similar to what we have done net of dividends in '25 for SFS overall. SFS globally in 2025 had impact of some of the specific items.

Speaker #3: Two of them, it's the UK fines and the PHAV residual. So definitely SFS will be a big contribution for the year-over-year profit improvement for Stellantis globally.

Speaker #4: Thank you.

Antonio Filosa: Thank you.

Speaker #6: Thank you very much.

Thomas Besson: Thank you very much.

Speaker #5: The next question comes from the line of Patrick Hummel from UBS. Your line is open.

Operator: The next question comes from the line of Patrick Hummel from UBS. Your line is open.

Speaker #6: Yeah. Hi, it's Patrick from UBS. Thanks for taking my question. The first one is on your investments. They came down quite a bit in the second half of the year.

Patrick Hummel: Yeah. Hi, it's Patrick from UBS. Thanks for taking my question. The first one is on your investments. They came down quite a bit in the second half of the year. From a conversation I had earlier today with Ed, it seems like 2026 is not gonna see an increase in investments. Can you confirm that is correct? If so, how does that square with the $13 billion you're planning to invest in North America? Are you taking money off the table elsewhere? Just to understand the context of, yeah, how you, how you got to that low CapEx or overall investment level. My second question. Regarding Maserati, you said you're gonna integrate it into the regional accounting.

Speaker #6: And from a conversation I had earlier today with Ed, it seems like 2026 is not going to see an increase in investments. Can you confirm that is correct?

Speaker #6: And if so, how does that square with the $13 billion you're planning to invest in North America? You're taking money off the table elsewhere.

Speaker #6: Just to understand the context of, yeah, how you got to that low capex or overall investment level. And my second question regarding Maserati, you said you're going to integrate it into the regional accounting.

Patrick Hummel: Should we read that as a strategic decision that Maserati is going to remain part of the Stellantis group, even after the strategic review of your entire brand portfolio? Is that a decision now already taken?

Speaker #6: Should we read that as a strategic decision that Maserati is going to remain part of the Stellantis group even after the strategic review of your entire brand portfolio?

Speaker #6: Is that a decision now already taken?

Speaker #4: Well, thank you for your question. I will take the second part of your question. I will leave João answering the first part. So the overall organizational strategy for Stellantis, starting from half 2 or 25, has been to increase level of regionalization.

Antonio Filosa: Thank you for your question. I will take the second part of your question. I will leave Joao answering the first part. The overall organizational strategy for Stellantis, starting from H2 2025, has been to increase the level of regionalization. Since we strongly believe we are a strong global company with even stronger regional roots. Putting back Stellantis as individual segment into the regions where it is sold, is a follow-up of this execution of having our organization much more regional than before. For details on Maserati, as on all the brand portfolio, I will invite you to attend our investor day, 21 May. Now, we leave the first part of your question to Joao.

Speaker #4: Since we strongly believe we are a strong global company, we've even stronger regional roots. So putting back Stellantis as individual segment into the regions where it is sold is a follow-up of this execution.

Speaker #4: Of having our organization much more regional than before. Then all the brand portfolio, I will invite you to attend our investor day May 21st.

Speaker #4: Now we leave the first part of your question to João.

Speaker #3: Yeah. So I confirm that we are forecasting investments to be flattish year over year. It includes all the commitments that we have communicated. The $13 billion were over four years.

João Laranjo: Yeah. I confirm that we are forecasting investments to be flattish year-over-year. It includes all the commitments that we have communicated. The $13 billion were over four years period. The investments that we have for 2026, it's consistent to that. Again, at the investors, they will give you more information about how we are thinking about investments going forward. One thing that we can anticipate is that we're gonna focus our investments where we have the highest opportunity for return on capital.

Speaker #3: So the investments that we have for 2026, it's consistent with that. Again, at the Investor Day, they will give you more information about how we are thinking about investments going forward.

Speaker #3: But one thing that we cannot anticipate is that we're going to focus our investments where we have the highest opportunities for return on capital.

Speaker #4: Thank you.

Antonio Filosa: Thank you.

Speaker #6: Thank you very much.

Patrick Hummel: Thank you very much.

Speaker #5: The next question comes from the line of Philippe Auchois from Jefferies. Your line is open.

Operator: The next question comes from the line of Philippe Houchois from Jefferies. Your line is open.

Philippe Houchois [Managing Director, Equity Research: Yes, thank you very much. The first question is, can you make any comments on your recent quality development? You've told us you've updated on the cost, on the cash impact. Would you say, industrially speaking right now, is quality trending up, down, flat? That would be helpful. The follow-up question is, sorry to go back to this, but this issue of operating leverage, the volume drop through. I mean, you mix volume and mix, so we cannot separate the two, unlike GM, for example, separates the two. It feels like if you have a normal volume leverage, then the mix looks like a drag. Am I misreading this? Would you give an indication maybe what this normal drop-through should be in North America going forward? To me, it should be around 20% at least.

Speaker #7: Yes. Thank you very much. The first question is, can you make any comments on your recent quality development? You've told us you've updated on the cost, on the cash impact.

Speaker #7: Would you say industrially speaking right now is quality trending up, down, flat? That would be helpful. And the follow-up question is, sorry to go back to this, but this issue of operating leverage.

Speaker #7: The volume dropped through—I mean, you mix volume and mix, so we cannot separate the two. And, like, Nick at GM, for example, separates the two.

Speaker #7: But it feels like if you have a normal volume leverage, then the mix looks like a drag. And am I misreading this? And would you give an indication maybe what this normal dropthrough should be in North America going forward?

Speaker #7: To me, it should be around 20% at least. If you have any comment on this, that would be very helpful.

Philippe Houchois [Managing Director, Equity Research: If you have any comment on this, that'd be very helpful.

Speaker #4: Okay. I will answer starting from the second part of this question. So as I said before, there has been a mixed effect by half 2 or 25.

Antonio Filosa: Okay. I will answer, starting from the second part of this question. As I said before, there has been a mixed effect by half 2 or 25, driven by production of light-duty and heavy-duty trucks, restrained by specific operational issues that we have solved. I can tell you very clearly, that mix will improve already in Q1 a lot. We will increase production of light duty, we'll increase production heavy duty, and we will follow and reflect the higher demand that we see on any V8 engine. This is the second part of your question. The first part of your question is about quality. We have changed the organization. We have put the leadership of quality in our SLT team, so in the top tier of our organization.

Speaker #4: Driven by production of light duty and heavy duty trucks, restrained by specific operational issues that we have solved. So I can tell you very clearly that mixed will improve already in quarter one a lot.

Speaker #4: We will increase production of light duty. We'll increase operational heavy duty. And we will follow and reflect the higher demand that we see on any V8 engine.

Speaker #4: So this is the second part of your question. The first part of your question is about quality. So we have changed organization. We have put the leadership of quality in our SLT team.

Speaker #4: So in the top tier of our organization. We are recruited to 2,000 additional engineers, mainly dedicated to quality improvements. And quality is improving already.

Antonio Filosa: We have recruited 2,000 additional engineers, mainly dedicated to quality improvements. Quality is improving already, and a lot. We see, for instance, in the one month of services indicator, in North America, improvements in about 50%. We see in the same indicator, one month in service in Europe, improvement over 30%. We see 20% improvement of the same indicator in South America. Now, it's execution, it's daily execution that will drive even more positive momentum in quality. Thank you very much.

Speaker #4: And a lot. So we see for instance, in the one month for services indicator in North America, improvements in about 50%. We see in the same indicator, one month in services in Europe, improvement over 30%.

Speaker #4: And we see 20% improvement of the same indicator in South America. Now it's execution. It's daily execution. That will drive even more positive momentum in quality.

Speaker #4: Thank you very much.

Speaker #7: Thank you.

Philippe Houchois [Managing Director, Equity Research: Thank you.

Operator: The next question comes from the line of Michael Foundoukidis from ODDO BHF. Your line is open.

Speaker #5: The next question comes from the line of Michael Fundukidis from Odo BHF. Your line is open.

Speaker #3: Yes. Hi, Michael Fundukidis. Thanks for taking my questions. Two questions on my side. First, in the US, including recently, you talked a lot about upcoming launches, great products, high mix.

Michael Foundoukidis: Yes. Hi, Michael Foundoukidis, thanks for taking my questions. 2 questions on my side. First, in the US, including recently, you talked a lot about upcoming launches, great products, high mix, what could you tell us about your own sales and plan for more affordable options, meaning, well below $40,000 to provide consumers in the current economic context in the US? That's the first question. Second one, very quick one, more for Joao. In terms of one-off adjustment for 2026, of course, it will hopefully not be comparable to what we had last year. Even excluding last year, the average in Stellantis birth is around $3 billion per year. Could you confirm that we should assume a much lower figure than that at this point? Thank you.

Speaker #3: But what could you tell us about your answers and plan for more affordable options? Meaning well below $40,000 to provide consumers in the current economic context.

Speaker #3: In the US, that's the first question. And second one, very quick one, more for João. In terms of one-off adjustments for 2026, of course, it will hopefully not be comparable to what we had last year.

Speaker #3: But even excluding last year, the average in Stellantis births is around 3 billion per year. So could you confirm that we should assume a much lower figure than that at this point?

Speaker #3: Thank you.

Speaker #4: Okay. I will start. So when we look at US and when we look at the sub-40,000 US dollar market for sure, this is a portion of the market where our current penetration is low.

Antonio Filosa: Okay, I will start. When we look at US and when we look at the sub $40,000 market, for sure, this is a portion of the market where our current penetration is low, and we are investing within the $13 billion investment over the next four years, also in that part of the segment. We will deliver products to be credible players also in the below $40K portion or market, which is very large. I will give you an example that we already announced around additional affordability on our lineup, well, Ram, we launch a mid-size pickup truck that we will develop now, and we will launch to the market by Q4 2027. For the other part of the question, I will leave João to answer.

Speaker #4: And we are investing within the 13 billion dollar investment over the next four years also in that part of the segment. We will deliver products to be credible players also in the below 40K US dollar portion of market, which is very large.

Speaker #4: I will give you an example that we already announced around additional affordability on our lineup. Well, Ram will launch a midsize pickup truck that we will develop now.

Speaker #4: And we will launch to the market by quarter 4, 27. Now for the other part of the question, I will leave João to answer.

Speaker #3: Thank you, Antonio. As we have communicated on February 6th, we have taken the vast majority of the charges in HQ 2025. We do not forecast unusual items.

João Laranjo: Thank you, Antonio. As we have communicated on 6 February, we have taken the vast majority of the charge in H2 2025. We do not forecast unusual items. If your question is specific to restructuring expense, although we don't forecast that either, I could confirm that any restructuring expense would be well below EUR 3 billion for 2026.

Speaker #3: But if your question is specific to restructuring expense, although we don't forecast that either, I could confirm that any restructuring expense would be well below 3 billion for 2026.

Speaker #4: Thank you.

Antonio Filosa: Thank you.

Operator: The next question comes from the line of Henning Cosman from Barclays. Your line is open.

Speaker #5: The next question comes from the line of Henning Kussmann from Barclays. Your line is open.

Speaker #8: Yeah. Hi, team. Good afternoon. Good morning. Thanks for taking the question. There seems to be a huge amount of focus on this operational leverage in North America.

Henning Cosman: Yeah. Hi, team. Good afternoon, good morning. Thanks for taking the question. There seems to be a huge amount of focus on this operational leverage in North America, so I was just hoping you could maybe be a little bit more precise, Antonio, with respect to the mix drag from the inefficiencies, and at the end of 2025, which you're hoping to not repeat in Q1 and from there in 2026. That we could perhaps ourself calculate a more sustainable operating leverage for North America. Outside of that, if you could help us with some of the other important buckets for the North America EBIT bridge. For example, the CAFE savings that you hope to have.

Speaker #8: So I was just hoping you could maybe be a little bit more precise Antonio with respect to the mixed drag from the inefficiencies at the end of 2025, which you're hoping to not repeat.

Speaker #8: In the first quarter and from there, in 2026. So that we could perhaps ourselves calculate a more sustainable operating leverage for North America. And then outside of that, if you could help us with some of the other important buckets for the North America EBIT bridge, for example, the CAF fee savings that you hope to have.

Henning Cosman: I believe on the preliminary call, we talked about some relief on D&A attributable to some of the impairments you were able to have, of course, non-repeater one-offs. Anything that you could help us to substantiate a little bit, you know, the positive AOI in North America that you had kindly confirmed before? Then the second piece, if you don't mind, in terms of others, so the other segment separate to the regions, at least compared to my expectations, it was a little bit more negative than I had expected. Perhaps you could tell us what we should expect as a sustainable level for the others segment or specifically, what you think that could be in 2026?

Speaker #8: I believe on the preliminary call, we talked about some relief on DNA attributable to some of the impairments you were able to have of course, non-repeater one-offs.

Speaker #8: Anything at all that you could help us to substantiate a little bit the positive AOI in North America that you had kindly confirmed before.

Speaker #8: And then the second piece, if you don't mind, in terms of others, so the other segments separate to the regions, at least compared to my expectations, there was a little bit more negative than I had expected.

Speaker #8: So perhaps you could tell us what we should expect as a sustainable level for the others segment or specifically what you think that could be in 2026.

Speaker #8: Thank you very much.

Henning Cosman: Thank you very much.

Speaker #4: Okay. Thank you. Thank you for your question. So again, on HQ 25 in North America, what we saw was volume up as we all said.

Antonio Filosa: Okay. Thank you. Thank you for your question. Again, on H2 2025 in North America, what we saw was volume up, as we all said, very high up, net price up, and mix offsetting a little bit the volumes effect and the net price effect, because we produced less pickup trucks, light duty, and heavy duty. We had a set of operational issues in the plant that we have solved. What we see now, already in January, is higher production on light duty, higher production on heavy duty, a better mix driven by those volumes, plus all the volumes of V8 engine that is very profitable to us. This is one of the major lever of growth for 2026. On the others, I will ask João to answer.

Speaker #4: Very high up. Net price up. And mix of setting a little bit the volumes are fed and the net price are fed because we produce at a less pickup trucks light duty and heavy duty.

Speaker #4: We had a set of operational issues in the plant that we have solved. So what we see now already in January is higher production or light duty, higher production heavy duty, a better mix driven by those volumes.

Speaker #4: Plus all the volumes of V8 engine that is very profitable to us. So this is one of the major lever or growth for 2026.

Speaker #4: On the others, I will ask João to answer.

Speaker #3: Yes, okay. Thank you, Antonio. So, for 2026, we expect to see, as Antonio mentioned, a volume growth on the back of the new products.

João Laranjo: Okay. Thank you, Antonio. For 2026, we expect to see, as Antonio mentioned, a volume growth on the back of the new products. We expect to see better mix, both because of the increase on mainly light duty, but also the reduction of BEV and especially our PHEV volumes in 2026. We expect an improvement on the operational efficiencies, both because of the non-repeat of specific items that we had in 2025, but also because of the more stable operational environment that we have, plus the additional volumes. Net of the headwinds that, as we know, tires and raw materials, we expect to be headwinds in 2026.

Speaker #3: We expect to see better mix, both because of the increase on mainly light duty, but also the reduction of BEV and especially PHEV volumes in 2026.

Speaker #3: And we expect an improvement on the operational efficiencies both because of the non-repeat of specific items that we had in 2025 but also because of the more stable operational environment that we have.

Speaker #3: Plus the additional volumes. So net of the headwinds that, as we know, tariffs and raw materials we expect to be a headwind in 2026, we expect that net of those headwinds, we're still going to see a positive industrial cost of operational efficiencies.

João Laranjo: We expect that net of those headwinds, we're still gonna see a positive industrial cost with operational efficiencies. The improvements in North America are primarily driven in 2026 by volume mix and operational efficiency. Those will be the key drivers. Relate to the other segment, the biggest driver for the deterioration in 2025 was on financial sales due to the charges that we have taken there. For 2026, we expect a large improvement year over year because of no repeat of the charge, and we continue the improvement on the financial services business.

Speaker #3: So the improvements in North America are primarily driven in 2026 by volume mix and operational efficiency. Those will be the key drivers. And then related to the other segment, the biggest driver for the two relation in 2025 was on financial sales due to the charges that we have taken there.

Speaker #3: So for 2026, we expect a large improvement year over year because of non-repeat of the charges and the continued improvement on the financial services business.

Speaker #8: Thank you.

Henning Cosman: Thank you.

Speaker #4: Thank you very much.

Antonio Filosa: Thank you very much.

Operator: The next question comes from the line of Harald Hendrikse from Citi. Your line is open.

Speaker #5: The next question comes from the line of Harald Hendriksen from Citi. Your line is open.

Speaker #9: Yeah. Thank you so much for taking my question. Just wanted to ask a little bit more about your assumptions regarding the market and specifically market pricing in 2026.

Harald Hendrikse: Yeah, thank you so much for taking my question. Just wanted to ask a little bit more about your assumptions regarding the market, and specifically market pricing in 2026. You have lots of new product. I know they're white space for you, but they're obviously not white space for the market. You have some really, really strong competitors, Toyota, specifically Hyundai, maybe GM, in a lot of the white spaces you're looking at. Can you talk a little bit about what you're expecting for the pricing environment in the market, and how you expect your competitors to react to your new product? I doubt that they will do nothing. In the rest of the world, you know, European pricing obviously was dramatically negative in the second half of 2025.

Speaker #9: You have lots of new product. I know there are white space for you, but there are obviously not white space for the market. And you have some really, really strong competitors, Toyota specifically, Hyundai, maybe GM.

Speaker #9: And a lot of the white spaces you're looking at. So can you talk a little bit about what you're expecting for the pricing environment in the market and how you expect your competitors to react to your new product?

Speaker #9: I doubt that they will do nothing. And then in the rest of the world, European pricing obviously was dramatically negative in the second half of 2025.

Speaker #9: I think your competitors are kind of saying the same thing. Chinese competition is obvious, not just in Europe. But also in EMEA and South America.

Harald Hendrikse: I think your competitors are kind of saying the same thing. Chinese competition is obvious, not just in Europe, but also in EMEA and South America. Should we expect that to continue and remain as negative? Again, how can you deal with that environment? It seems like a very difficult environment to improve profitability strongly. Thank you.

Speaker #9: Should we expect that to continue and remain as negative? And again, how can you deal with that environment? It seems like a very difficult environment to improve profitability strongly.

Speaker #9: Thank you.

Speaker #4: Yeah. So first on the US, we expect the market and also ourselves to be to see a stable to a slightly positive price environment.

João Laranjo: First, on the US. We expect the market and also ourselves to be just a stable to a slightly positive price environment as the tariff impact continues to have any effect, and the market has not priced for the tariffs yet. For Europe, we expect to just to continue the strong competitive environment, so we continue to expect a price pressure in Europe. Globally, for Stellantis, we expect the price to be basically flat, with some positives in North America offsetting price pressure in Europe.

Speaker #4: As the tariff impact continues to have an effect and the market has not priced for the tariffs yet. For Europe, we expect to see continue a strong competitive environment.

Speaker #4: So, we continue to expect price pressure in Europe. Globally, for Stellantis, we expect the price to be basically flat, with some positives in North America offsetting price pressure in Europe.

Speaker #4: Thank you.

Antonio Filosa: Thank you.

Harald Hendrikse: Thank you.

Speaker #9: Thank you.

Speaker #5: The next question comes from the line of Emmanuel Rosner from Wolf Research. Your line is open.

Operator: The next question comes from the line of Emmanuel Rosner from Wolfe Research. Your line is open.

Emmanuel Rosner: Great. Thank you so much. My first question is a follow-up on CapEx. Obviously, your, you know, your CapEx was down by about 3 billion last year. You're maintaining it at this lower level in 2026. I wasn't super clear on a go-forward basis. Are you constraining it in the near term? Because obviously, you know, there's some free cash flow consideration. Is this the new sustainable level, or do you anticipate having to spend more in 2027, 2028 in order to achieve some of, you know, the projects and investments? If so, how do we get comfortable with the 2027 positive free cash flow? I have a follow-up.

Speaker #10: Great. Thank you so much. My first question is a follow-up on CapEx. Obviously, your CapEx was down by about 3 billion last year. You're maintaining it at this lower level.

Speaker #10: In 2026, I wasn't super clear on the go-forward basis. Are you constraining it in the near term because obviously there's some free cash flow consideration?

Speaker #10: Is this the new sustainable level? Or do you anticipate having to spend more in 27, 28 in order to achieve some of the projects and investments?

Speaker #10: And if so, how do we get comfortable with the 2027 positive free cash flow? And then I have a follow-up.

João Laranjo: We expect to see CapEx increasing in the coming years. We will talk more about that on the Investor's Day. The cash flow positive for 2027 will be on the back of the continuous of volume increase as we continue to launch new products and ramp up the ones that we have launched right now, and continuous the operation efficiencies that we are driving will continue to drive. Tony just mentioned earlier, improvements in quality, so we believe we have a lot of opportunities on the industrial cost that we're gonna pursue this year, next year.

Speaker #3: So, we expect to see CapEx increasing in the coming years, and we will talk more about that on Investors' Day. And the cash flow positive for 2027 will be on the back of the continuous volume increase as we continue to launch new products, and ramp up the ones that we have launched right now, and continuous—the operational efficiencies that we are driving will continue to drive, Antonio just mentioned earlier, improvements in quality.

Speaker #3: So, we believe we have a lot of opportunities on the industrial cost that we're going to pursue this year and next year.

Speaker #4: Thank you.

Emmanuel Rosner: Thank you.

Speaker #5: The next question.

Operator: The next question.

Emmanuel Rosner: Thank you.

Operator: Sorry. Sorry, you had a follow-up?

Speaker #9: Sorry. Sorry, you had a follow-up?

Emmanuel Rosner: I have my follow-up question, if I could. Yes, please. Just wanted to, I think you made some announcements today around this Leapmotor. I'm just curious if you could just articulate for us how does this help European profitability?

Speaker #10: My follow-up question, if I could. Yes, please. Just wanted to I think you made some announcements today around this leap motor. I'm just curious if you could just articulate for us how does this help European profitability?

Speaker #4: Yeah. So obviously, we will have time May 21st to talk about that, about Europe, about the leap motor in Europe, and in the world.

Antonio Filosa: Yeah. We will have time, 21 May, to talk about that, about Europe, about Leapmotor in Europe and in the world. This is a partnership that is very strong for us commercially, since we are accelerating our market reach in Europe, in South America, and in Middle East and Africa. Also is a technical partnership that will help us in getting to higher level of competitiveness, especially with electric cars, and this is very important for Europe. It's a partnership that will improve our collaboration also on new tech development. That is all for now. I invite you to join our 21 May Investor Day. Thank you.

Speaker #4: But this is a partnership that is very strong for us commercially. Since we are accelerating our market reach in Europe, in South America, and in the Middle East and Africa, but also is a technical partnership that will help us in getting to higher level of competitiveness, especially with electric cars.

Speaker #4: And this is very important for Europe. And the partnership that will improve our collaboration also on new tax development. That is all for now.

Speaker #4: I invite you to join our May 21st investor day. Thank you.

Speaker #10: Thank you.

Emmanuel Rosner: Thank you.

Speaker #5: The next question comes from the line of Horst Schneider from Bank of America. Your line is open.

Operator: The next question comes from the line of Horst Schneider from Bank of America. Your line is open.

Harald Hendrikse: Yes, thank you. My first question is on Middle East and South America, so in a way, the third engine region. You have been clear on your expectations for North America and Europe. Could you maybe also outline your expectations specifically for these two regions? My perception is what I see for January, for example, is that your sales were more or less down, in some cases, down a lot in Middle East and South America. What should we expect here in terms of trade-off, volume and price, given that the Chinese competition is increasing in these regions a lot? That takes me also to the follow-up question with regard to volume and price. You have been clear that you expect this volume increase, and you expect flattish price.

Speaker #11: Yes, thank you. My first question is on Middle East and South America. So in a way, it's a third engine region. You have been clear on your expectations for North America and Europe.

Speaker #11: Could you maybe also outline your expectations specifically for these two regions? My perception is, what I see for January, for example, is that your sales were more or less down.

Speaker #11: In some cases, down a lot. In the Middle East and South America. So what should we expect here in terms of trade-off? Volume and price, given that the Chinese competition is increasing in these regions a lot.

Speaker #11: And that takes me also to the follow-up question. With regard to volume and price, you have been clear that you expect this volume increase and you expect flattish price.

Harald Hendrikse: Just in case, what has got for you priority from here? Let's assume that the competitive pressure increases by the Chinese globally. Would you have a higher emphasis on volume or on price? Thank you.

Speaker #11: Just in case, what has got for you priority from here? Let's assume that the competitive pressure increases by the Chinese. Globally, would you have a higher emphasis on volume or on price?

Speaker #11: Thank you.

Speaker #4: Okay. No, thank you for your question. So for both South America and Middle East and Africa, we see increasing volumes in 2026. Generally, specific month for South America, and also for Middle East and Africa.

Antonio Filosa: Okay. No, thank you for your question. For both South America and Middle East and Africa, we see increasing volumes in 2026. Generally specific mark for South America and also for Middle East and Africa, our vision is higher business and higher volumes for 26. What we will pursue globally in 2026 is profitability, and we know we have a large volume opportunity because we are launching, especially in North America, where obviously Chinese competition is not there, many new products. What we are pursuing is to grow with profitability. Thank you.

Speaker #4: But our vision is higher business and higher volumes for '26. What we will pursue globally in '26 is profitability. And we know we have a large volume opportunity because we are launching especially in North America, where obviously Chinese competition is not there.

Speaker #4: Many new products. But what we are pursuing is to grow with profitability. Thank you.

Speaker #11: Okay. Thank you.

Harald Hendrikse: Okay, thank you.

Speaker #5: The next question comes from the line of Stuart Pearson from Oxcap Analytics. Your line is open.

Operator: The next question comes from the line of Stuart Pearson from Oxcap Analytics. Your line is open.

Speaker #10: Yeah, good afternoon. Thank you for taking my question. So quickly on working capital, can you just give us some indication what your expectations there and especially excluding any impact in that line item from obviously the cash cost of restructuring going to suppliers?

Stuart Pearson: Good afternoon. Thank you for taking my question. Quickly on working capital, can you just give us some indication what your expectations there, and especially excluding any impact in that line item from obviously the cash costs of restructuring going to suppliers? Is that a tailwind ex that this year? With that in mind, when we think about industrial free cash flow this year, ex those cash restructuring costs, and given what you're saying on all the KPI line items improving, is it possible that that's positive ex the restructuring this year? The follow-up is more just a bigger picture on the strategy, Antonio, I guess, ahead of the Capital Markets Day. I mean, I know you're gonna tell us to wait a lot for that, fair enough.

Speaker #10: So is that a tailwind X that this year? And with that in mind, when we think about free cash flow this year, X, those cash restructuring costs, given what you're saying on all the KPI line items improving, is it possible that that's positive X the restructuring this year?

Speaker #10: And then the follow-up is more just a bigger picture on the strategy, Antonio, I guess, ahead of the capital markets day. I mean, I know you're going to tell us to wait a lot for that, fair enough.

Speaker #10: But just so we know what to expect, is this more of a, I guess, an operational plan, or is it a bigger strategic reset?

Stuart Pearson: Just so we know what to expect, is this more of a, I guess, an operational plan, or is it a bigger strategic reset? Or is it, you know? By which I mean, is it more of just execution, improving on quality, improving efficiency, a lot of the things that you've mentioned, or could we start to see some more radical decisions that you're preparing, as well as you've been working on this plan for some time? Thank you.

Speaker #10: Or is it by which I mean is it more of just execution improving on quality improving efficiency, a lot of the things that you've mentioned?

Speaker #10: Or could we see some more radical decisions that you're preparing as well as you've been working on this plan for some time? Thank you.

Speaker #4: Well, thank you very much. I will answer to the second part of your question, and we'll leave Joao to answer to the first part of your question.

Antonio Filosa: Thank you very much. I will answer to the second part of your question, and will leave Joao to answer to the first part of your question. Obviously, I invite you 21 May, but I can anticipate to you that we will see both things, right? We will see a very strong focus on operational execution and operational efficiency improvement. This is quality. This is time to market. This is obviously industrial productivity. Also we will see, I must say, a lot of answer to all the other strategic items that we have all out in our minds. Stay tuned, and again, I invite you to join us in Auburn Hills, 21 May. Joao?

Speaker #4: So obviously, I invite you May 21st, but I can anticipate to you that we will see both things, right? We will see a very strong focus on operational execution and operational efficiency improvement.

Speaker #4: This is quality. This is time to market. This is obviously industrial productivity. But also, we will see, I must say, a lot of answers to all the other strategic items that we have in our minds.

Speaker #4: So stay tuned. And again, I invite you to join us in Obernitz on May 21st. Joao?

Speaker #11: Okay. On the working capital, just to remind what we said on February 6th is that of the charge that we have announced, the cash out will be 6.5 billion of which 2 billion in 2026 and that 2 billion 1 billion it's in Q1.

João Laranjo: Okay. On the working capital, just to remind what we said on 6 February, is that of the charge that we have announced, the cash out will be EUR 6.5 billion, of which EUR 2 billion in 2026, and of that EUR 2 billion, EUR 1 billion is in Q1. If we exclude this EUR 2 billion payments in 2026, working capital would be a tailwind, primarily due to the volume growth that we are forecasting for this year. Excluding payments, working capital will be a tailwind. On the cash flow positive, excluding payments, we have no other comments versus what we have already communicated in our guidance.

Speaker #11: But if we exclude this 2 billion payments in 2026, primarily due to the volume growth that we are forecasting for this year. So excluding payments working capital will be a tailwind.

Speaker #11: On the cash flow positive, excluding payments, we have no other comments versus what we have already communicated in our guidance.

Speaker #10: Okay. Thank you.

Stuart Pearson: Okay.

Antonio Filosa: Thank you.

Stuart Pearson: Thank you.

Speaker #5: The next question comes from the line of Christian Fren from Goldman Sachs. Your line is open.

Operator: The next question comes from the line of Christian Frenes, from Goldman Sachs. Your line is open.

Speaker #4: Yes, hello. Thanks for taking my question. Can you hear me? Hello?

Christian Frenes: Yes, hello. Thanks for taking my question. Can you hear me? Hello?

Speaker #11: Yes. Yes. Yes, we can hear you.

Antonio Filosa: Yes. Yes, we can hear you.

Speaker #4: Great. Thank you very much. So you took an exceptional significant warranty charge in H2 2025. Could you help me understand how your warranty run rate in North America and Europe will change as we move from 2025 into 2026?

Christian Frenes: Great. Thank you very much. You took a exceptional, significant warranty charge in H2 2025. Could you help me understand how your warranty run rate in North America and Europe will change as we move from 2025 into 2026? That's my first question. My second question has to do with the CAFE opportunity, the elimination of some of the penalties from CAFE. What sort of opportunity that presents? I heard Henning's question earlier on. You don't seem to be willing to answer the question. I'm just wondering, you know, could you help me understand why you would be unwilling to answer? Is it because it's not such a significant opportunity in 2026 and it's a longer-term story?

Speaker #4: That's my first question. And my second question has to do with the CAFI opportunity the elimination of some of the penalties from CAFI. What sort of opportunity that presents?

Speaker #4: I heard Henning's question earlier on, and you don't seem to be willing to answer the question. And I'm just wondering could you help me understand why you would be unwilling to answer?

Speaker #4: Is it because it's not such a significant opportunity in 2026 and it's a longer term story? Or just as you could or is it just conservatism or what have you?

Christian Frenes: Or is it just conservatism or what have you, if you could just help clarify sort of your stance on that. The third one is just a detailed sort of housekeeping question. I can also follow up with Ed after the call, but I'll ask it now. You appear to have restated the components of the profit bridge in H1 2025. For North America and Europe, when I look at the profit bridge, for example, for North America, H1 2025, your net price was reported at the time to be negative EUR 1.2 billion, but the restated number appears to be negative EUR 1.5 billion. I'm just trying to understand what's behind that. I can also follow up with Ed. Thank you.

Speaker #4: If you could just help clarify sort of your stance on that. And then the third one is just a detailed sort of housekeeping question.

Speaker #4: I can also follow up with Ed after the call, but I'll ask it now. You appear to have restated the components of the profit bridge in H125.

Speaker #4: So for North America and Europe, when I look at the profit bridge, so for example, for North America, H125, your net price was reported at the time to be negative 1.2 billion.

Speaker #4: But there were stated number appears to be negative 1.5 billion. I'm just trying to understand what's behind that. I can also follow up with that.

Speaker #4: Thank you.

Speaker #11: Okay. I guess you asked what level of opportunities new cafe regulation are providing to us. If this is your question, the major opportunity that we will yeah, please go ahead.

Antonio Filosa: Okay, I guess you asked what level of opportunities new CAFE regulation are providing to us. If this is your question, the major opportunity that we will. Yeah, please go ahead.

Speaker #4: No, no. That is my question. Yeah. Sorry.

Christian Frenes: No, no, that is my question. Yeah, sorry.

Speaker #11: Yes. So I didn't understand that before. And I apologize for that. But the main opportunity that these new regulations will provide to us and we will absolutely pursue it is to improve our mix of production and sales profit optimizing in North America.

Antonio Filosa: Yes. I didn't understand that before, and I apologize for that. The main opportunity that this new regulation will provide to us, and we will absolutely pursue it, is to improve our mix of production and sales, profit-optimizing in North America. That means basically US, we will sell less PHEV and more ICE. On the ICE side, we have the advantage to launch now any V8 engine, and we are setting up our production to produce 100,000 units more in 2026 than in 2025 of overall V8 engine, which is obviously very positive in mix. I hope that this is the answer that you are expecting. Now, I will leave João to answer to the rest of your question.

Speaker #11: That means basically in the US, we will sell less PHEV and more ISE. And on the ISE side, we have the advantage to launch now MEV8 engine and we have a setting up our production to produce 100,000 units more in 2026 than in 2025 of overall V8 engine, which is obviously very positive in mix.

Speaker #11: And I hope that this is the answer that we are expecting. Now we leave Joao to answer to the rest of your question. Yep.

João Laranjo: Yep. On the third question, on the walk, we didn't restate anything. There is the way that we do the walks for H1. We use the H1 2024 average margins, and then for the H2, we use H2 average margins, and then for the full year, the full year average margins, and the same thing for FX. That's why stacking the walks do not work. On warranty, we have provided a detailed schedule on 6 February, and we can take offline. The way that you should think about that is what we have booked on the P&L, which we have detailed on H2, that we have classified as AOI, which were related to the shipments in 2026, 2025.

Speaker #11: On the third question on the walk, we didn't restate anything. But there is the way that we do the walks for H1, we use the H124 average margins.

Speaker #11: And then for the H2, we use H2 average margins. And then for the full year, the full year average margins. And the same thing for FX.

Speaker #11: And that's why it's stuck in the walks do not work. On the warranty, we have provided yeah. And then on warranty, we have provided a detailed schedule on February 6th.

Speaker #11: And we can take offline, but the way that you should think about that is what we have booked on the P&L, which we have detailed on H2 that we have classified as AOI, which were related to the shipments in 2026, 2025.

Speaker #11: The only thing that you should exclude there is the 500 million euros that were related to the H1. And that you will give you a good run rate going forward.

João Laranjo: The only thing that you should exclude there is the EUR 500 million that were related to the H1. That will give you a good run rate going forward.

Speaker #4: Okay. Thank you very much.

Christian Frenes: Okay.

João Laranjo: Thank you.

Christian Frenes: Thank you very much.

Speaker #11: Thank you.

Antonio Filosa: Thank you.

Speaker #5: Ladies and gentlemen, this was the last question. Let me now hand the call back to Mr. Antonio Filosa for the conclusion.

Operator: Ladies and gentlemen, this was the last question. Let me now hand the call back to Mr. Antonio Filosa for the conclusion.

Speaker #4: Very well. And thank you again for joining us today. As we close today's call, I would like just to let you know this is the last call of our head of investor relationship, Ed.

Antonio Filosa: Very well, thank you again for joining us today. As we close today's call, I would like just to let you know this is the last call of our Head of Investor Relations, Ed. Ed will be leaving us in the coming weeks, and before that, will be supporting a handover to his successor, Charlie Chrisman, that have been with us for the last 8 years, working closely to our CFO, João Laranjo. All of us at Stellantis would like to extend our thanks to Ed and for his years of services and wish him the best for his future. Thank you, everyone, for the time and focus you have put into reviewing our results and listening to our business updates, and we look forward to talking to you regularly throughout that with what we expect to be a very productive 2026. Thank you again.

Speaker #4: Ed will be leaving us in the coming weeks. And before that, we'll be supporting a handover to his successor. Charlie Christman. That have been with us for the last eight years working closely to our CFO, Joao Laranjo.

Speaker #4: All of us at Stellantis would like to extend our thanks to Ed. And for his years of services and wish him the best for his future.

Speaker #4: Thank you everyone for the time and focus you have put into reviewing our results and listening to our business updates. And we look forward to talking to you regularly throughout that what we expect to be a very productive 2026.

Antonio Filosa: See you next time.

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