Patrick Hummel

Patrick Hummel from UBS Group AG questioned the CapEx trend, noting a decrease in H2 2025 and a flat outlook for 2026, and how this aligns with the $13 billion investment plan for North America. He also asked if Maserati's integration into regional accounting signals a strategic decision for it to remain part of the Stellantis group.

Answer

CEO Antonio Filosa explained that Maserati's integration into regional segments aligns with Stellantis' strategy to increase regionalization and strengthen regional roots. He invited attendees to the Investor Day on May 21st for details on Maserati and the overall brand portfolio. CFO Joao Laranjo confirmed CapEx is forecast to be flattish year-over-year, consistent with the $13 billion investment over four years, and more information on future investment strategy will be provided at the Investor Day, with a focus on highest return on capital.

Patrick Hummel asked if investments would remain flat in 2026 despite the $13 billion North America plan, and if this implies taking money off the table elsewhere. He also asked if integrating Maserati into regional accounting signifies a strategic decision for Maserati to remain part of Stellantis.

Answer

CFO João Laranjo confirmed investments are forecast to be flattish year-over-year, consistent with the $13 billion over four years, and that future investments will focus on highest return on capital. CEO Antonio Filosa explained that Maserati's integration into regional segments aligns with Stellantis' strategy of increased regionalization, but deferred further strategic details on the brand portfolio to the Investor Day.

Patrick Hummel asked about Stellantis's 2026 AOI margin guidance, seeking clarification on the moderate expansion despite strong commercial progress and mid-single-digit top-line growth, and inquired about the regional puts and takes. He also asked for confirmation that a rights issue is off the table.

Answer

CFO João Laranjo confirmed no equity raise is contemplated and detailed that 2026 AOI improvement would be driven by volumes, positive mix in the U.S. (less PHEVs/BEVs, more HEMIs), flat pricing (positive in U.S., likely negative in Europe), and industrial efficiencies offsetting tariffs and raw material headwinds. CEO Antonio Filosa added that the reset pace is tied to successful, high-quality product launches, with North America being a major growth engine due to new products and a 150% increase in the order book.

Patrick Hummel asked about Stellantis's 2026 AOI margin guidance, questioning the moderate expansion despite strong commercial progress and mid-single-digit revenue growth. He sought clarification on the underlying factors, including regional performance, and inquired whether a rights issue was off the table.

Answer

João Laranjo, Chief Financial Officer, confirmed that an equity raise is not being contemplated. He outlined key drivers for AOI improvement in 2026, including increased volumes, positive mix in the U.S. (more HEMIs, fewer PHEVs/BEVs), flat pricing (positive in U.S., negative in Europe), and offsetting EUR 1 billion in tariffs/raw material headwinds with industrial efficiencies. Antonio Filosa, Chief Executive Officer, added that the pace of the strategic reset is tied to successful, high-quality new product launches, with North America (especially the U.S.) being a major growth engine due to new products and a 150% increase in the order book.

Patrick Hummel asked if the previous management's statement about positive North American AOI in H2 2025 was still valid, given the volume bounce. He also inquired about the qualitative puts and takes for cash flow heading into 2026, considering higher investments from the $13 billion U.S. plan and potential trailing effects of one-off announcements, asking if positive free cash flow for 2026 could be confidently projected.

Answer

Head of Investor Relations Ed Ditmire stated that Stellantis is not providing regional guidance but is focused on sequential improvement. He also mentioned that despite U.S. investments, the company aims for monthly investments around 8% of revenue, and it's too early to project 2026 free cash flow, with updates to follow after full-year financials.

Patrick Hummel asked for clarification on whether the previous management's statement about positive AOI in North America for the second half is still valid, given the volume bounce. He also inquired about the qualitative puts and takes for cash flow heading into next year, specifically if higher investments are expected due to the $13 billion U.S. plan, and if next year's free cash flow is confidently expected to be positive.

Answer

CFO Joao Larangeira stated that Stellantis is not providing regional guidance but is focused on sequential improvement quarter by quarter. Regarding free cash flow, he mentioned that despite the U.S. investments, the focus remains on monthly investments around 8% of revenue. He added that the strategic plan adjustments are still being assessed, and a final figure for next year's impacts is not yet available, with updates to be provided with full-year financials.

Patrick Hummel from UBS Group AG raised concerns about the company's cash flow, noting the significant cash burn in H1. He asked about balance sheet priorities, the cash absorption of the financing arm (Finco), and the outlook for shareholder returns. He also followed up on the brand portfolio strategy.

Answer

CEO Antonio Filosa linked improved cash generation directly to volume and profit growth. CFO Doug Ostermann added that the cash burn rate is decreasing and the focus is on improving AOI and stabilizing working capital to achieve positive cash flow. He clarified the Finco's net cash outflow is manageable. Regarding the brand portfolio, Mr. Filosa confirmed a detailed strategy update will be presented at the Q1 2026 Capital Markets Day.

Patrick Hummel of UBS Group AG asked about production flexibility at the Tuscaloosa plant to increase SUV output as a tariff offset. He also questioned the inventory levels of U.S.-made GLE and GLS models in China and the potential sales impact later in the year.

Answer

CEO Ola Kallenius confirmed that the Alabama plant has the flexibility to increase SUV production if market demand shifts, though the overall impact is difficult to predict. CFO Harald Wilhelm stated that GLE and GLS inventory in China is sufficient to last well into Q2 and that the potential impact from prohibitive tariffs is factored into the guided 300 basis points risk assessment.

Patrick Hummel from UBS questioned the production flexibility at the Tuscaloosa, U.S. plant to increase SUV output as a tariff mitigation strategy. He also asked about the inventory levels of U.S.-made GLE and GLS models in China and whether they are sufficient to sustain sales for the year.

Answer

CEO Ola Kallenius confirmed that the Alabama plant has flexibility to increase SUV production if market dynamics shift, but noted the overall impact is difficult to predict. CFO Harald Wilhelm stated that GLE/GLS inventory in China is sufficient for Q2, and the potential impact of prohibitive tariffs later in the year is included in the guided 300 basis point risk.

Patrick Hummel from UBS inquired about Mercedes-Benz's long-term strategy in China, questioning the right capacity, product mix, and entry-segment presence in a persistently challenging market. He also asked how the company will maintain a fresh ICE product lineup as it launches BEV-only platforms like MBEA, and what this means for investments.

Answer

CEO Ola Kallenius outlined a three-pronged view of China: a technology race Mercedes is committed to winning, a subdued macroeconomic environment they expect to persist, and a competitive shakeout among BEV players. He stated it's too early to make definitive decisions on segment presence, emphasizing flexibility. Regarding the product pipeline, Kallenius assured that new technologies like MB.OS will be proliferated across both ICE and BEV models to ensure a coherent, premium customer offering. CFO Harald Wilhelm added that while investments are at a peak in '24-'25, they are expected to decline post-2026 due to smart engineering and modularity.