Stellantis NV Q1 FY2025 earnings call

• Top line results were challenging with shipments and revenues down year-over-year, but initial progress on commercial recovery efforts noted (EU market share edging higher, U.S. retail order intake improving). - Executing well on new product wave with 3 all-new and 3 refreshed products launched in Q1. - Taking actions to address tariff issues, including temporary shutdowns and layoffs, while engaging with governments; appreciated tariff relief measures but remains subject to uncertainties. - Suspended financial guidance due to evolving tariff policies.

Consolidated shipments fell 9% year-over-year to 1.22 million units, and revenues were down 14% to EUR 36 billion. North America: Shipments down 20% year-over-year, lower average selling prices impacted revenue. Enlarged Europe: Market share edging higher, sequential improvement in Q1 2025 to 17.3% (highest since Q1 2024), electrified products strong with #1 in hybrids and #2 in BEVs. South America: 6% year-over-year revenue growth on 19% higher shipments, maintaining #1 market position. Middle East and Africa: Negative year-over-year due to import restrictions, but increasing local production.

The company suspended its financial guidance as the tariff environment has evolved and the potential implications are uncertain, making it impossible to ensure an accurate forecast at the time.

• Tariff uncertainties and evolving policy framework creating extreme uncertainties. - Impact of tariffs on North American operations, including temporary shutdowns and layoffs. - Uncertainty around the policy framework affecting financial planning and performance.

Q: José from JPMorgan asked about options for production footprint changes related to tariffs and pricing outlook.

A: Doug discussed considering supply chain changes, working with suppliers to increase U.S. content, and noted pricing discipline is robust but hard to predict for Q2.

Q: Thomas from Kepler Cheuvreux asked about product launch impact on volumes and market share.

A: Doug said European product launches' impact ramps up in Q2, already seeing market share improvement in Europe; North America launches are more back-loaded with key products later in the year.

Q: Philippe from Jefferies asked about LCV performance in Europe.

A: Doug noted LCV segment weakness due to macro uncertainty, but Stellantis is strong in the segment and working on product and regulatory fronts to address challenges.

Q: Daniel from Bernstein asked about U.S.-manufactured vehicle parts content and import content.

A: Doug said ~80% of U.S.-assembled vehicle parts are USMCA compliant, and imported USMCA-compliant cars have 30%-50% U.S. content.

Q: Gautam from RBC asked about MSRP offset and long-term tariff advantage.

A: Doug said administration's 3.75% on MSRP is helpful, and long-term could advantage Stellantis if U.S. manufacturing base is supported.

Q: Patrick from RBC asked about free cash flow and CapEx.

A: Doug said free cash flow guidance not provided due to uncertainty, and CapEx expected to moderate as launches are worked through.

Q: Mike from HSBC asked about Jeep Cherokee and Ram Classic replacement production.

A: Doug said both products are part of the plan, with tariff impact to be seen as policy evolves.

Q: Martino from Equita asked about components from China and semiconductors.

A: Doug said most U.S.-assembled parts are USMCA compliant, and administration is addressing tariff stacking issues including semiconductors