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Stellantis Shifts Focus to Efficient Investments, Shareholder Returns — Update

By David Sachs

 

Stellantis will shift the focus of its capital allocation strategy to efficient investments and shareholder returns, and will target a higher dividend in 2025.

The Netherlands-based maker of Jeep, Dodge and a dozen other brands said Thursday that it will set a liquidity target of 25% to 30% of revenue in the medium term to support shareholder rewards. For 2025, it will target the upper end of its 25%-30% dividend policy compared with 25% in recent years, the company said.

The update came ahead of an investors' meeting in Michigan.

Stellantis still expects lower profitability in the first half, echoing previous warnings. The firm expects an adjusted operating income margin at 10%-11%, compared with a 14.4% margin in the first half of last year.

The company expects an improvement in the second half on new model launches, cost-cutting measures and improvements in working capital.

It confirmed its full-year guidance of an adjusted double-digit operating margin and positive industrial free cash flows, and backed its plan to return at least 7.7 billion euros ($8.32 billion) to shareholders this year.

 

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

 

(END) Dow Jones Newswires

June 13, 2024 04:22 ET (08:22 GMT)

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