STLA Stock Today: February 26 — Up Despite $26B Loss; No UAW Bonus
Stellantis profit sharing is in focus after management said U.S. workers will not receive 2025 checks, even as STLA rose today. Shares gained 4.41% to $8.05 after a €22.3 billion FY2025 loss driven by €25.4 billion in EV writedowns. Investors looked past the headline, cheering stronger second-half results, a North America pivot to trucks and hybrids, and 2026 guidance for mid-single-digit revenue growth. Management also suspended the 2026 dividend, underscoring margin strain and execution risk that we think U.S. investors should weigh carefully.
STLA rises as investors weigh loss against turnaround signals
STLA closed at $8.05, up 4.41% (+$0.34). Intraday ranged $7.91 to $8.22 on 21.33 million shares, above the 14.43 million average. YTD is -29.42% and 1-year is -39.35%, with a 52-week span of $7.03 to $14.28. The 50-day ($9.99) and 200-day ($10.01) trend above price, making them near-term resistance. Bollinger’s middle band at $8.33 is a pivot; support sits near $7.91 and $7.03.
Despite a $26.3 billion headline loss, second-half results improved as North America led a mix shift toward higher-margin trucks and ICE-hybrids. Management kept 2026 revenue growth guidance to mid-single digits, signaling early traction in its reset. That helped bulls step in today, viewing FY2025 as a reset year rather than a trend. See coverage at Yahoo Finance.
Earnings: Big writedowns, tighter capital plans
Stellantis posted a €22.3 billion FY2025 net loss after €25.4 billion in EV-related writedowns tied to battery, platform, and program assumptions. The reset reflects slower EV demand and price pressure, especially in Europe and China, plus higher costs. Management is prioritizing profitable nameplates and pacing EV capex. For U.S. investors tracking Stellantis earnings 2025, this clarifies where capital will, and will not, go in the near term.
Management suspended the 2026 dividend to preserve cash. On trailing figures, EPS is -$0.71 and the P/E is -11.35. Valuation screens optically cheap on sales (P/S ~0.13) and book (P/B ~0.27), reflecting risk. Cash per share sits near $11.38 with working capital of about $4.61 billion. The setup favors discipline: smaller launches, fewer low-margin trims, and tighter inventory control through 2026.
UAW: No 2025 checks and what it means
The company confirmed no 2025 UAW checks, pausing stellantis profit sharing for U.S. autoworkers as it absorbs writedowns and resets targets. That choice aligns with the 2025 loss and margin pressure. The decision and context were reported by The Detroit News. For investors, it highlights a cash-first stance and near-term cost containment.
Pausing stellantis profit sharing may strain morale, but the mix shift to higher-margin trucks and hybrids aims to support North American profits. We see limited near-term wage flexibility given recent contracts and EV spend. If the turnaround delivers steadier cash flow, future UAW profit sharing could resume, but 2026 execution on pricing, incentives, and plant efficiency will decide the timeline.
Outlook: Key catalysts, risks, and trading setup
We will watch North America margins on Ram, Jeep, and ICE-hybrid trims, plus any EV program changes after the writedowns. Management guides to mid-single-digit revenue growth in 2026. Next checkpoint is the July 30, 2026 earnings update. Any reinstatement plan for dividends, or clarity on stellantis profit sharing beyond 2025, would be incremental positives.
RSI at 41.21 and ADX at 32.25 point to a weak but defined trend. The $8.33 band is a near-term line to clear; $9.99–$10.01 is heavier resistance. Support sits at $7.91, then $7.03. Position sizing matters as volatility (ATR ~0.35) remains elevated. We prefer patience: add on pullbacks if fundamentals keep improving.
Final Thoughts
Today’s move says investors see a credible reset: better second-half execution, a pivot to profitable trucks and hybrids, and disciplined capital after heavy EV writedowns. Offsetting that, the 2026 dividend suspension, paused stellantis profit sharing for 2025, and deep drawdowns versus the 50-day and 200-day averages show the burden of proof is still on management. For U.S. investors, the playbook is clear: track North America margins, pricing discipline, and cash trends into the July earnings update. Trade the levels ($8.33 pivot, $9.99–$10.01 resistance, $7.91/$7.03 support) and keep risk tight until revenue growth and cash flow confirm the turnaround.
FAQs
Why is STLA up after reporting such a large annual loss?
The market often looks forward. Investors focused on stronger second-half results, a North America mix shift toward higher-margin trucks and hybrids, and guidance for mid-single-digit revenue growth in 2026. Those signs suggested FY2025 was a reset year. With shares deeply discounted versus sales and book value, even modest execution improvement can lift sentiment.
Will there be Stellantis profit sharing for 2025?
No. Management said U.S. autoworkers will not receive 2025 checks, pausing stellantis profit sharing as the company absorbs EV writedowns and protects cash. The move reflects margin strain after a €22.3 billion loss. Future payouts depend on a sustained rebound in profits and cash flow, especially in North America.
What are the biggest risks for STLA in 2026?
Execution risk tops the list: holding pricing and incentives while shifting mix to profitable trucks and ICE-hybrids. Further EV writedowns or slower demand could weigh on margins. Labor costs remain firm, and the 2026 dividend is suspended. Watch North America margins, cash generation, and any updates at the July 30 earnings report.
How do analysts view the stock today?
Current tallies show 4 Buy, 9 Hold, and 1 Sell ratings, implying a Hold-leaning consensus. Our read: valuation is low on sales and book, but weak profits and a suspended dividend keep many on the sidelines. Clearer margin gains and steadier cash flow could improve sentiment over the next few quarters.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.