Stellantis NV reported a profitable second quarter Thursday that was boosted by rising demand for its vehicles in North America, but investors aren't yet convinced by the carmaker's ambitious new turnaround plan as shares fell in New York and elsewhere. The maker of Jeep, Ram and Fiat vehicles posted quarterly net profit of $335 million (293 million euro), compared to a loss of $2.1 billion ...

Stellantis North America Headquarters, in Auburn Hills, April 23, 2026.

David Guralnick/The Detroit News/TNS

Stellantis NV reported a profitable second quarter Thursday that was boosted by rising demand for its vehicles in North America, but investors aren't yet convinced by the carmaker's ambitious new turnaround plan as shares fell in New York and elsewhere.

The maker of Jeep, Ram and Fiat vehicles posted quarterly net profit of $335 million (293 million euro), compared to a loss of $2.1 billion (1.87 billion euro) a year ago. Net revenues were $49.8 billion (43.5 billion euro), an increase of 13%, largely thanks to growth in North America.

On a call with analysts, CEO Antonio Filosa repeated several times that the carmaker's recovery would take time, noting that "nothing can be fixed overnight," and "the road is long, but we are moving in the right direction, with the right priorities and the right pace."

The company's top priorities are launching new models catering to a wider swath of the market, finding billions of dollars worth of cost cuts in several areas including manufacturing under a new "value creation program," as well as improving on the carmaker's poor quality reputation, Filosa said.

Yet investors appear skeptical about Filosa's turnaround efforts so far. Shares in New York fell about 5% in early trading Thursday before a partial recovery. Milan- and Paris-listed shares of the automaker ended the day down more than 4%.

While the company's North American metrics have improved amid rising U.S. vehicle sales, Stellantis flagged speed bumps in its other big market, Europe, which faces pricing and market-share pressure amid Chinese competition and other factors. Europe was the company's only region to post a negative adjusted operating income margin for the quarter. Analysts also raised questions about the slow pace of the North American recovery, as some brands, including Jeep, are still trying to gain sales traction with new models.

"All key financial metrics are significantly improved year-over-year," Filosa said of the company's overall performance, adding that it will maintain its financial guidance for the full year. That includes a modest revenue increase over 2025, adjusted operating income margin in the low-single digits, and positive cash flow by 2027.

Formed in 2021, Stellantis had reported its first loss of about $26 billion last year after big write-downs related to unraveling its prior electric vehicle investments made under former CEO Carlos Tavares. The automaker also struggled with sales as it sought to readjust pricing and fill key gaps in vehicle lineups, including in the U.S. market.

A gradual recovery started to take shape earlier this year. In the first quarter, the automaker returned to profitability amid improvements in its North American business. U.S. sales have also been trending in the right direction, up 6% in the second quarter in large part thanks to success of the Ram truck brand, especially Ram 1500 pickup sales. Still, challenges persist, including with quality, as the automaker has dealt with several high-profile and costly recalls of Jeeps and other vehicles lately.

In North America, the automaker continues to grapple with tariff costs. Its first-half tariff bill was close to $350 million, even after banking an approximately $460 million tariff refund from the federal government earlier in the year. Overall, it expects a tariff hit as high as $1.4 billion this year.

Stellantis dealer inventories in the United States have also surged this summer to among the highest in the industry. Cars piling up on dealer lots led to major issues for the automaker just two years ago, including a revolt by its own dealers.

But Filosa said some of the inventory surge was needed as the company sought to put more of its newly-launched models in front of customers. It also upped production recently to compensate for planned summer factory shutdowns coming up.

"We are not worried at all about the inventory level," he said.

Filosa continues to tout the flagship Ram 1500 as key to the automaker's success going forward. He noted the high-powered TRX SRT trim of the pickup is now headed to customers and will be "very profitable." Also coming later this year in the United States is the delayed Jeep Recon electric off-roader and an extended-range hybrid version of Jeep's full-size Grand Wagoneer SUV.

Filosa and other executives unveiled the automaker's new $70 billion turnaround plan called FastLane 2030 in May that involves a series of new products, new partnerships in manufacturing and technology, and more disciplined capital allocation.

Executives underscored Thursday that finding more cost savings across several parts of the business was expected to improve results going forward. The plan calls for around $6.8 billion worth of reductions by 2028 compared to 2025 levels; the automaker recently tapped former Volkswagen AG executive Pablo Di Si to head up the project.

Filosa told reporters some of those anticipated savings may be found in components the automaker buys, including through negotiations with suppliers, or switching materials. Other savings will come through finding new efficiencies at its factories, he said, as well as a more streamlined logistics operation.

"We have 3,000 people working today on the (value creation program), which is a very large amount of competence, talents and dedication to this important mission," Filosa said.

Shares of Stellantis have plummeted by nearly half since the start of the year, declining even after Filosa formally unveiled the new business plan two months ago. In February, the Stellantis announcement of its massive EV restructuring charge triggered an especially large selloff.

Rivals Ford Motor Co. and General Motors Co. reported earnings earlier this month. GM reported second-quarter profits of $3.9 billion and said it was doling out dividends to stockholders. Ford, meanwhile, reported a $1.3 billion loss related to charges for changing its EV plans, but the company upped its guidance for the rest of the year, pleasing investors.