Stellantis 2023: Record $204B Revenue and $3.2B Buyback Propel Shares 6.7% Higher
Stellantis achieves historic $204 billion revenue and $20 billion profit in 2023, announces $3.2 billion stock buyback, driving shares up over 6%.
Highlights from Stellantis' 2023 Financial Performance
- Despite challenges from the United Auto Workers strike, Stellantis posted record-breaking revenue and net profit in 2023.
- Global sales of battery electric vehicles (BEVs) surged by 21% year-over-year.
- CEO Carlos Tavares confirmed Stellantis’ EV segment is profitable, even as competitors like Ford and GM scale back EV investments.
- The company unveiled a $3.2 billion share repurchase program to boost shareholder value.
- Following the announcement, Stellantis’ stock climbed more than 6% during intraday trading.
Shares of Stellantis (STLA) soared 6.7% to $26.03 on Thursday after the automaker revealed record net revenue of $204.12 billion and net profit of $20.02 billion for 2023, alongside a substantial $3.2 billion buyback plan.
The company’s adjusted operating income reached $26.19 billion, although the operating margin slightly dipped to 12.8% from 13% in 2022 due to costs linked to the United Auto Workers strike.
Despite an estimated $3 billion revenue loss and $800 million profit impact from the strike, Stellantis outperformed other major U.S. automakers like Ford and General Motors in managing these disruptions.
Stellantis’ global battery electric vehicle sales increased by 21% in 2023, with CEO Carlos Tavares emphasizing the profitability of their EV lineup and commitment to accelerating electrification, contrasting with rivals pulling back.
The firm also capitalized on strong U.S. demand for hybrid vehicles, with its plug-in hybrids ranking as the top sellers nationwide.
CFRA analysts upgraded Stellantis to a “buy” rating, citing it as a prime investment to benefit from the growing hybrid vehicle market.
Over the past year, Stellantis shares have surged 53%, reflecting investor confidence in the company’s strategic direction and robust financial health.
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