After releasing a record turnover and a record post-tax result in 2023, the multinational car corporation Stellantis announced on Thursday their plan to initiate a share buyback program worth 3 billion Euros. The annual turnover reached 189.54 billion Euros, a 6% increase compared to 2022.

According to a survey by FactSet among 25 analysts, a revenue of 189.92 billion euros was expected. The adjusted operating result, a key metric for the company, amounted to 24.34 billion euros, thus increasing by 1% and slightly exceeding expectations of 23.75 billion euros according to FactSet.

The adjusted operating profit margin was 12.8% compared to 13.4% in 2022. The company also decided on a dividend increase of 16% to 1.55 euros per common share. The after-tax profit for 2023 amounted to 18.625 billion euros, compared to 16.78 billion euros in the previous year.

Analysts had expected an after-tax profit of 18.18 billion Euros. Stellantis also announced that the industrial free cash flow increased by 19% to 12.86 billion Euros. The Netherlands-based company, which owns brands such as Jeep, Dodge, and a dozen others, broke annual records in 2023 for net sales, industrial free cash flow, and after-tax profit.

However, the second half of the year was slower than in the comparison period of 2022, which is in line with the industry trend. Revenue remained stable at 91.18 billion euros, but the adjusted operating profit fell by 10% to 10.22 billion euros, corresponding to an adjusted margin of 11.2% compared to 12.3%.

For the future, Stellantis expects an adjusted operating margin of at least double digits and a positive industrial free cash flow in 2024. The company anticipates a positive revenue trend for the future.

"We are in a position where we are strong, ready, and resilient for what we consider to be quite a turbulent year," said Natalie Knight, the company's Chief Financial Officer. Knight cited high demand, but also prices, labor costs, and the unpredictable market for fully electric vehicles as challenges.