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(Sharecast News) - Shares in Stellantis surged in Milan on Wednesday after the auto giant reported a sharp narrowing of third-quarter losses as revenues increased, with the Jeep and Peugeot owner reaffirming its full-year guidance.
Net revenues rose 1% year-on-year to 37.6bn in the three months to September, while the net loss dropped 90% to 453m from 4.5bn a year earlier, when results were affected by significant items.
Growth was driven by a 3% increase in both Europe and South America, supported by higher volumes in Europe and favourable currency movements in South America.
However, North American revenues declined 3%, reflecting planned production downtime, while revenues fell 19% in the Middle East and Africa and 7% in Asia Pacific.
Group-wide vehicle shipments declined 1% to 1.29m units.
Adjusted operating income increased to 256m from 90m, with the adjusted operating margin improving to 0.7% from 0.2%.
Industrial free cash flow remained negative at 4.0bn, although that represented a 295m improvement on the same period last year. Industrial available liquidity stood at 42.7bn at the end of the quarter, the company said.
Stellantis reaffirmed its full-year guidance for a mid-single-digit percentage increase in revenues, a low-single-digit adjusted operating margin and an improvement in industrial free cash flow compared with 2025. The company also maintained its expectation of generating positive industrial free cash flow in 2027.
It said its value creation programme was gathering momentum, with savings expected to reach several hundred million euros in the fourth quarter, roughly double the amount achieved in the third. Stellantis expects to implement at least 40% of its targeted 6bn in annualised efficiencies by the end of 2026.
Looking ahead, Stellantis expects fourth-quarter shipments to exceed third-quarter levels, while pricing is anticipated to remain broadly stable.
The company also forecast full-year net tariff costs of 1bn and warned of additional cost pressures from memory chips and vehicle recalls.
The Milan-listed stock was up around 9% at 4.043 by 1223 GMT, while US futures were rising 9.4% to $4.52 in pre-market trading on Wall Street.