Stellantis: financial forecasts reiterated for 2024

(CercleFinance.com) - On Thursday, Stellantis reiterated its financial forecasts for 2024 ahead of an investor day to be held later in the day in Auburn Hills (Michigan).


The automotive group confirmed its target of a "double-digit" adjusted operating margin this year, accompanied by positive industrial free cash flow.

However, CFO Natalie Knight warned that she expects performance to vary between H1 and H2.

H1 should see an operating margin of around 10%-11%, with industrial free cash flow significantly lower than last year.

Meanwhile, H2 will be marked by several product launches, cost initiatives and the anticipated improvement in working capital.

The car maker says that all these elements should support a sequential improvement in its operating margin and industrial FCF.

Regarding shareholder returns, Stellantis says it is aiming to distribute over E7.7bn in dividends and share buybacks this year.

By 2025, the company says it is aiming for the upper end of its dividend payout policy (25-30%), compared with 25% in recent years.

These announcements were greeted with little enthusiasm on the Paris Bourse, where the share lost almost 1% in early trading, underperforming the CAC 40 (-0.3%).


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