Stellantis to Launch EUR3 Billion Buyback After Record Year

By David Sachs

Stellantis said it will launch a buyback of 3 billion euros ($3.22 billion) after posting record sales and aftertax profit in 2023 despite a slower second half.

The multinational carmaker said Thursday that full-year net revenue reached EUR189.54 billion, up 6% from 2022. Analysts had estimated sales of EUR189.92 billion, according to a FactSet poll of 25 analysts.

Adjusted operating income, a closely watched metric for the company, came in at EUR24.34 billion for the year, up 1% and slightly above expectations of EUR23.75 billion, according to FactSet. Its adjusted operating income margin was 12.8%, compared with 13.4% in 2022.

The carmaker committed to a share buyback program of EUR3 billion. The company proposed a dividend of EUR1.55 per common share, an increase of about 16% from the prior year.

Aftertax profit for the year stood at EUR18.625 billion, compared with EUR16.78 billion in 2022. Analysts had expected aftertax profit of EUR18.18 billion. Industrial free cash flow rose 19% to EUR12.86 billion, Stellantis said.

The Netherlands-based maker of Jeep, Dodge and a dozen other brands said it broke annual records for net revenue, industrial free cash flow, and aftertax profit in 2023. The second-half, however, was slower compared to the same period in 2022, aligning with industry trends. Net revenue was flat at EUR91.18 billion, but adjusted operating income fell 10% to EUR10.22 billion for an adjusted margin of 11.2% compared with 12.3%.

Looking ahead, Stellantis said it expects an adjusted operating margin in at least the double digits and positive industrial free cash flow in 2024. It says the revenue backdrop is positive.

"We are in a spot where we are strong, we are ready, we are resilient for what we think will be a pretty turbulent year," said Natalie Knight, the company's chief financial officer.

Knight said demand will be high but named pricing, labor costs, and an unpredictable market for fully-electric vehicles as headwinds.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

February 15, 2024 01:47 ET (06:47 GMT)

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