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# Stellantis CEO Vows To 'Exceed' Cost-Savings Targets, But Defers The 2027 Cash-Flow Bridge
- URL: https://www.bullished.co/stellantis-ceo-vows-to-exceed-cost-savings-targets-but-defers-the-2027-cash-flow-bridge-fb86e6be/
- Published: 2026-10-28T14:16:29.000Z
- Updated: 2026-10-28T14:16:29.000Z
- Description: Analysts pressed on how free cash flow turns positive in 2027; management pointed to its next earnings call for detail.
- Author: Matteo Parrino
- Tags: Earnings, STLA, Industry: Consumer Discretionary

Stellantis CEO Antonio Filosa said on the carmaker's third-quarter earnings call Wednesday that its cost-cutting program will [beat its targets](https://www.cnbc.com/2026/10/28/stellantis-45-billion-cash-drain-turnaround.html?ref=bullished.co), but when analysts asked him to show how 2027 free cash flow turns positive, he and CFO Joao Laranjo deferred the detail to a later call.

## A promise to beat the savings milestones

Filosa said [Stellantis](https://www.bullished.co/tag/stla/) will "exceed the [2.4 billion euro](https://www.cnbc.com/2026/10/28/stellantis-45-billion-cash-drain-turnaround.html?ref=bullished.co) cost saving" it set as its milestone for the start of 2027, and will also exceed the €6 billion run-rate savings target for 2028\. He said the Value Creation Program, the company's cost-cutting effort, would add hundreds of millions of euros of savings in the fourth quarter.

Industrial costs were the biggest driver of the quarter, Laranjo said, improving by 828 million year over year, with purchasing efficiencies, including early program benefits, accounting for most of it. Adjusted operating income was $256 million, and net revenues were [37.6 billion euros](https://www.cnbc.com/2026/10/28/stellantis-45-billion-cash-drain-turnaround.html?ref=bullished.co), up 1%. Industrial free cash flow was negative in the quarter, which management attributed to seasonal working capital.

Stellantis reaffirmed its 2026 guidance and its expectation of positive industrial free cash flow in 2027\. Laranjo said the guidance assumes about $1 billion of net tariff costs, a modest improvement from the earlier $1 billion to $1.2 billion estimate.

## Analysts press on the 2027 bridge

A UBS analyst asked how much the program adds in 2027 over 2026\. Laranjo said the €2.4 billion is a run rate of actions implemented by the end of this year and a gross figure that excludes headwinds from raw materials and, next year, microchips. He said the 2027 view would come with the outlook for that year.

On commodities, Laranjo said costs run about 1% of revenue in the third and fourth quarters and are expected to rise next year as firm contracts renew. Memory-chip pressure is growing and will build into 2027, he said, adding "we are not prepared to disclose a number."

A Barclays analyst, assuming roughly $3 billion of working-capital inflow, estimated full-year free cash flow near minus €2 billion and asked how it turns positive in 2027\. Laranjo corrected the premise: he expects working capital to be almost break-even for the year and said the company is guiding only to 2026 free cash flow better than 2025\. Filosa said management would "for sure be much more detailed" on the next call, when it discusses the budget.

An analyst from Citi said the 2027 bridge is crucial for both operating income and free cash flow, and that the sector is underestimating headwinds. The analyst asked for a more detailed analysis, and mentioned February as the hoped-for date.

## Shares and the turnaround record

Stellantis shares were at $4.66 in Wednesday trading, up 12.56% from the prior close, for a market value of about $12.0 billion. The turnaround targets were set in May under the Fast Lane 2030 plan, and the shares had sunk to their lowest level since the group was formed in 2021, according to RTE.

Filosa said the fuller 2027 picture, with every component, will come on the next earnings call.

### Sources

- [Stellantis stock rises as turnaround plan, cost cuts gain traction](https://www.cnbc.com/2026/10/28/stellantis-45-billion-cash-drain-turnaround.html?ref=bullished.co) — CNBC
- [Stellantis posts modest Q3 operating income, burns €4bn](https://www.rte.ie/news/business/2026/1028/1597035-stellantis-quarterly-results/?ref=bullished.co) — rte.ie
- [Stellantis Q3 2026 earnings show narrower loss, reaffirmed guidance](https://qz.com/stellantis-narrows-loss-reaffirms-2026-guidance-102826?ref=bullished.co) — qz.com
- [Mercedes and Stellantis struggle to revive fortunes despite cost cuts and new models](https://www.ft.com/content/79fb812b-8959-424b-9378-8b1a237be449?ref=bullished.co) — Financial Times
- [Stellantis posts $503M loss in Q3, expects to spend $1.1B on tariffs](https://www.freep.com/story/money/cars/stellantis/2026/10/28/stellantis-posts-503m-loss-in-q3-though-sees-improvement/92473748007/?gca-cat=p&gca-ds=sophi&gca-epti=z113601p117350c117350u111101e1113xxv113601&gca-ft=105&gca-uir=false&gnt-cfr=1&gnt-djm=1&ref=bullished.co) — freep.com

### More on Stellantis

- [Stellantis Third-Quarter Shipments Edge Down 1% To 1.3 Million Units As North America Falls 12%](https://www.bullished.co/stellantis-third-quarter-shipments-edge-down-1-to-1-3-million-units-as-north-america-falls-2001cc97/)

[All Stellantis (STLA) coverage →](https://www.bullished.co/tag/stla/)