Shares of Stellantis (STLA) are down 28% after the automaker said that it expects to take a $26 billion U.S. restructuring charge and suspended its dividend payment.
Stellantis pre-released some figures for the fourth quarter of 2025, saying it expects a net loss for all of last year.
Consequently, the European-based vehicle manufacturer suspended its dividend for 2026. Stellantis previously paid an annual distribution of $0.77 U.S. a share.
Management said the dividend suspension will help preserve its balance sheet.
Stellantis added that, while it is not abandoning electric vehicles, its electrification strategy will continue at “a pace that needs to be governed by demand rather than command.”
In terms of guidance, Stellantis is targeting a mid-single-digit percentage increase in revenue and a low-single-digit increase in its operating income margin this year.
Executives at the company said they remain committed to a previously announced plan to invest $13 billion U.S. in their American operations over the next four years.
Stellantis also plans to launch 10 new vehicles and restructure its global manufacturing and quality management capabilities in coming years.
As part of the U.S. investment, Stellantis said it will add 5,000 jobs to its American workforce.
Stellantis isn’t alone in taking a multibillion-dollar write down. Rivals Ford (F) and General Motors (GM) have also announced their own hits of $19.5 billion U.S. and $7 billion U.S.
Lastly, Stellantis said that it plans to offload its stake in NextStar Energy, a joint venture with LG Energy Solution that operated a battery manufacturing plant in Canada.
The Canadian battery plant was part of Stellantis’ electric vehicle strategy.
Stellantis is scheduled to report its Q4 and full-year 2025 financial results on Feb. 26.
Prior to today (Feb. 6), STLA stock had declined 41% over the last five years to trade at $9.54 U.S. per share.
