Stellantis Posts Record 2023 Results – €18.6B Net

Stellantis (NYSE: STLA) today reported record full year 2023 results with net revenues growing 6% year-over-year to €189.5 billion. Net profit rose 11% to €18.6 billion, helped by a 10% gain in operating income due to the non-recurrence of unusual charges in 2022, mainly related to the Takata airbag recall and CAFE penalty adjustments. Significantly, industrial free cash flow increased 19% y-o-y to €12.9 billion. All told, Stellantis shipped ~6,392,600 vehicles during the year. As a result, it proposed a dividend of €1.55 per common share, that’s plus ~16% compared to 2022, pending shareholder approval at the annual meeting on 16 April 2024.

“As we just passed the three-year mark since Stellantis’ inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds. Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets,” said Carlos Tavares, CEO.

Stellantis will also execute a 2024 open-market share buyback program of €3.0 billion, which includes €0.5 billion of shares repurchased to service share-based compensation and employee share purchases.
Stellantis is betting heavily on the electrification of the auto industry. It noted that overall market growth is vital to the business plan and the electrification push in North America where 18 additional BEVs will be launched in 2024, reaching a total of 48 by end of 2024. In Europe, the all-new Citroën ë-C3 starts at €23,300 and is claimed to be the most competitively priced B-segment EV produced there. The Jeep® Avenger, was awarded European Car of the Year in 2023.
“These vehicles deliver solid profitability but they’re still not yet at the levels of our internal combustion engine vehicles,” Tavares observed. Key here is something the customer doesn’t see – the ability to flexibly produce all types of vehicles – traditional, fuel cell, battery electric – on the same production lines.