Stellantis Reiterates 2024 Financial Guidance and H1/H2 Color Updated Capital Framework Supports Strong Returns
Stellantis has reaffirmed its 2024 financial guidance and updated its capital framework to enhance returns. The company expects double-digit Adjusted Operating Income (AOI) margins and positive industrial free cash flows. CFO Natalie Knight highlighted a H1 AOI margin of 10-11%, with an expected improvement in H2 due to product launches, cost initiatives, and better working capital. Stellantis plans to distribute ≥€7.7 billion through dividends and buybacks in 2024 and target upper dividend payout ranges in 2025. Additionally, the firm aims for liquidity levels of 25-30% of revenues to ensure capital efficiency and shareholder returns.
- Reaffirmed 2024 financial guidance with double-digit AOI margin.
- Positive industrial free cash flows expected.
- Plan to deliver ≥€7.7 billion in dividends and buybacks in 2024.
- Target liquidity levels set at 25-30% of revenues for medium-term.
- Focus on capital efficiency and strong shareholder returns.
- H2 expected to show sequential improvement in AOI and free cash flow.
- H1 industrial free cash flows expected to be visibly below prior year period.
Insights
Stellantis reiterating its 2024 financial guidance and updated capital framework underscores its robust financial health and strategic foresight. The firm aims for a double-digit Adjusted Operating Income (AOI) margin and positive industrial free cash flows, signaling a solid profit outlook. This target reflects Stellantis' confidence in its ability to generate substantial earnings, which is a positive indicator for investors. Importantly, the commitment to delivering
CFO Natalie Knight's outline of H1 expectations, with a
The shift towards capital efficiency and target liquidity levels of
For retail investors, these financial measures suggest that Stellantis is on a stable path with strategic initiatives in place to enhance profitability and shareholder value. The focus on dividends and buybacks is particularly appealing, providing a tangible return on investment.
Stellantis' strategy to leverage nine key strategic differentiators highlights the company's proactive approach to industry disruption. This strategic positioning aims to address the evolving landscape of the auto industry, which is increasingly driven by electrification, connectivity and autonomous driving technologies. By focusing on these differentiators, Stellantis can carve out a competitive advantage in a highly dynamic market.
The significant product launches and cost initiatives planned for H2 are critical for sustaining revenue growth and operational efficiency. These efforts align with broader industry trends where innovation and cost management are pivotal for success. The commitment to improving working capital also highlights a focus on financial discipline, which is essential for long-term sustainability.
For retail investors, understanding these strategic moves is key to appreciating Stellantis' potential for future growth. The company's ability to navigate industry trends and implement effective cost strategies will be vital in determining its competitive position and overall market performance.
Stellantis Reiterates 2024 Financial Guidance and H1/H2 Color
Updated Capital Framework Supports Strong Returns
AMSTERDAM, June 13, 2024 – Today at the first Stellantis Investor Day at 8:00 a.m. EDT / 2:00 p.m. CEST in Auburn Hills, Michigan, U.S., CEO Carlos Tavares will outline the Company’s nine key strategic differentiators that the Company is leveraging to unlock value and address the disruption and reinvention of the auto industry worldwide.
Chief Financial Officer Natalie Knight and other members of the Top Executive Team will share updates on the Company’s regions, functions and brands.
Stellantis management confirms its 2024 financial guidance and capital return plan:
- Double-digit Adjusted Operating Income (AOI) margin and positive industrial free cash flows.
- Capital Return: Delivering ≥
€7.7 billion in dividends and buybacks in 2024.
CFO Natalie Knight will reiterate more specific color on first and second-half expectations within the 2024 period:
- H1 outlook of 10
-11% AOI margin, with industrial free cash flows visibly below the prior year period. - Significant product launches, cost initiatives and anticipated improvement in working capital together support H2 sequential improvement opportunity in AOI and industrial free cash flow.
Stellantis is also updating its capital plan in several significant ways:
- Setting target liquidity levels of 25
-30% of revenues for the medium-term, shifting focus to capital efficiency and supporting strong shareholder returns. - The Company will continue to use share buybacks and ordinary dividends to return excess cash to shareholders.
- In 2025, Stellantis will target the upper range of its 25
-30% dividend payout policy vs.25% in recent years.
A webcast of the live event is available at:
https://stellantis-ir-day-june-13-2024.open-exchange.net/registration
Details for watching the Stellantis Investor Day are also available under the Investors section of the Company’s website (www.stellantis.com). The presentation material will be available at the beginning of the event.
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About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit http://www.stellantis.com.
 | @Stellantis |  | Stellantis |  | Stellantis |  | Stellantis |
| For more information, contact: Nathalie ROUSSEL +33 6 87 77 41 82 – Shawn MORGAN 1 248 760 2621 – shawn.morgan@stellantis.com communications@stellantis.com www.stellantis.com |
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; Stellantis’ ability to successfully manage the industry-wide transition from internal combustion engines to full electrification; Stellantis’ ability to offer innovative, attractive products and to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; Stellantis’ ability to produce or procure electric batteries with competitive performance, cost and at required volumes; Stellantis’ ability to successfully launch new businesses and integrate acquisitions; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; exchange rate fluctuations, interest rate changes, credit risk and other market risks; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; changes in local economic and political conditions; changes in trade policy, the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the level of governmental economic incentives available to support the adoption of battery electric vehicles; the impact of increasingly stringent regulations regarding fuel efficiency requirements and reduced greenhouse gas and tailpipe emissions; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the level of competition in the automotive industry, which may increase due to consolidation and new entrants; Stellantis’ ability to attract and retain experienced management and employees; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; Stellantis’ ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the operations of financial services companies; Stellantis’ ability to access funding to execute its business plan; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with Stellantis’ relationships with employees, dealers and suppliers; Stellantis’ ability to maintain effective internal controls over financial reporting; developments in labor and industrial relations and developments in applicable labor laws; earthquakes or other disasters; risks and other items described in Stellantis’ Annual Report on Form 20-F for the year ended December 31, 2023 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.
Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. Securities and Exchange Commission and AFM.
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FAQ
What is Stellantis' financial guidance for 2024?
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