Shares of Stellantis, the automaker behind the Jeep brand, declined sharply following the release of its second-quarter earnings report on Thursday. The company's shares dropped as much as 8.9% in early trading before settling down 2.5% by the market close.

Stellantis reported a net profit of 293 million euros ($336 million) for the quarter, marking a significant recovery from a loss of 1.87 billion euros in the same period last year. Revenue increased 13% to 43.48 billion euros compared with the previous year. However, the results fell short of analyst expectations. A FactSet survey had anticipated net income of 464 million euros on revenues of 42.83 billion euros.

Despite the profit improvement and revenue growth aligning broadly with consensus, the company’s earnings across various profit metrics were notably weaker than forecasts. Adrien Brasey, an analyst at AlphaValue, noted that while the top-line performance was in line with estimates, the sharp miss in profitability raised concerns among investors.

Stellantis is in the midst of a strategic turnaround, emphasizing investments primarily on four key brands in Europe and the United States. This plan, unveiled earlier this year, aims to streamline operations and strengthen the company’s competitive position amid industry challenges.

The mixed quarterly results reflect ongoing pressures in the automotive sector, including supply chain disruptions and shifts in consumer demand. Stellantis’ focus on core markets and brands is seen as a critical step toward regaining profitability, but the recent earnings report indicates that the recovery process remains uneven.