Stellantis, the global automaker behind Jeep, Dodge, Fiat, Chrysler, and Peugeot, returned to profitability in the second quarter of 2026, driven by stronger demand in North America. The company reported a net profit of 293 million euros ($335.3 million) for the April to June period, reversing a loss of 1.87 billion euros from the previous year. Adjusted operating income also surged more than threefold, reaching 773 million euros, signaling early benefits from CEO Antonio Filosa’s turnaround strategy.

Despite these gains, Stellantis' adjusted operating income fell short of analyst expectations, with many on Wall Street expressing concerns about the company’s growth trajectory in the U.S. market. Challenges include balancing production volumes with profitability due to tariffs, estimated to cost at least 1 billion euros this year. Filosa emphasized the company’s deliberate choice to limit certain trims and focus on higher-margin models to mitigate these tariff impacts.

The recently launched Jeep Cherokee, which is manufactured in Mexico, is beginning to scale up production, though the company remains cautious amid ongoing cost pressures. Filosa acknowledged the FaSTLAne 2030 turnaround plan is progressing but stressed the need for patient execution over the long term. Stellantis’ industrial free cash flow reached 1 billion euros at the end of June, beating Citi’s forecast and highlighting improving operational performance.

Still, analysts noted that while free cash flow figures are positive, the company’s adjusted operating income margin remains modest at 1.8%. Citi analysts noted the improvement but suggested investors will likely require more robust and sustained evidence of operational strength before reconsidering their stance on Stellantis’ stock. The company’s shares experienced notable declines following the earnings announcement, reflecting cautious investor sentiment despite the return to profitability.