Stellantis (STLA, Financial) shares dropped over 11.7% in pre-market trading to $14.17, potentially hitting over a one-year low at market open.
The company announced a revision to its financial guidance, lowering its full-year adjusted profit margin from a previous forecast of "double digits" to a range of 5.5% to 7.0%. Additionally, it now expects industrial free cash flow to range between -50 billion to -100 billion euros, significantly below the previous forecast of a positive value.
This change is attributed to strategic decisions to expand remediation measures for performance issues in North America and a decline in global industry dynamics.
