Stellantis shares gain on record FY profits, €1.5bn buyback

Shares in carmaker Stellantis on Wednesday reported record full-year profits along with a large jump in global battery and electric vehicle sales.

The maker of Fiat, Dodge and Peugeot vehicles, among others, posted a 26% rise in net profit to €16.8bn. Battery and electric vehicle sales surged 41%.

The company, formed in 2021 from the merger of the Italian-American Fiat Chrysler group and France’s PSA Group, said net revenues rose 18% to €179.6bn.

The company also announced a €4.2bn dividend payout, or €1.34 a share, and the board approved a share buyback of €1.5bn.

Chief executive Carlos Tavares hailed the results as a vindication of its electrification strategy in Europe, with 288,000 battery and electric vehicle (BEV) sales in 2022 and 23 models of the greener vehicles now on the market.

Stellantis wants to double this to 47 models by the end of next year and is targeting global BEV sales of 5 million by 2030.

“We now have the technology, the products, the raw materials, and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024,” Tavares said.

Reporting by Frank Prenesti for Sharecast.com