Know your Brands: Stellantis NV

When it comes to cars, whether it’s an Alfa Romeo, Citroën, Dodge, Fiat, or Jeep® - if you can't afford to drive the brand, letting your money ride on the brand's profitability could be an option by investing in the company behind the brands and potentially benefit financially from its success. Are you up for a financial ride? 🤔

Stellantis, a global conglomerate, combines 14 distinguished automotive brands and two mobility branches, transcending simple transportation by fostering connections and moving people.

At the forefront of electrification and software innovation, Stellantis integrates advanced technologies into its products and services. The automaker strives to pioneer sustainable mobility solutions across various sectors, including autonomous and connected vehicles, electrification, shared services, micro-mobility, and electric aircraft. Stellantis has a diverse community spanning over 160 nationalities, operational bases in over 30 countries and a market presence in over 130 countries.

Brands that are under Stellantis include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep®, Opel, Peugeot, and many more.

Disclaimer: The brands may not be limited to the logos on the image and may change. The use of logos are for educational purposes only.

Financials, share buybacks and dividends

In Q1 2024, Stellantis faced a 12% decrease in net revenues to €41.7 billion, attributed to volume, mix, and foreign exchange challenges. Shipments fell by 10%, reflecting production adjustments for upcoming product releases. This led to a drop in its shares. Global sales of battery electric vehicles (BEVs) and low-emission vehicles (LEVs) increased by 8% and 13%, respectively, compared to Q1 2023.

Despite this, the Franco-Italian automaker remains optimistic about growth in the second half of the year, buoyed by new models like the Citroen eC3, Peugeot E3008 EV SUV, and Jeep’s Wagoneer S in the United States. While overall shipments fell by 10%, sales of electric vehicles rose by 8%.

“While Q1 2024 year-over-year shipments and Net revenues comparisons were difficult due to transitions in our next-generation product portfolio manufactured on new platforms, we are delivering clear improvements in key commercial dynamics with customer sales outpacing shipments. We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions.” Natalie Knight, CFO. Stellantis reaffirmed its 2024 targets, expecting double-digit margins on adjusted operating income and positive industrial free cash flow.

Stellantis NV boosted its annual dividend by 16% this year, paid in May. Additionally, the company is actively executing a €3.0 billion share buyback program, aiming for total capital returns surpassing €7.7 billion in 2024.

Acquisitions and Expansions  

In February, according to various sources, the chief financial officer said that the automaker would keep "eyes open" for potential acquisitions and merger opportunities, including software or battery material deals.

In January, Stellantis acquired CloudMade's AI framework, ML (machine learning) models, and IP (intellectual property) rights, boosting the development of STLA SmartCockpit; this will integrate seamlessly with occupants' digital lives, turning the vehicle into a personalised space - Its next-gen interface allows natural interaction via touch, voice, glance, and gesture inputs.

In March, it announced a record €5.6 billion investment in South America from 2025 to 2030, aiming for over 40 new products, Bio-Hybrid tech, decarbonisation, and new business ventures.

Further, Ayvens and Stellantis have struck a multi-billion euro deal for Ayvens' affiliates to purchase up to 500,000 vehicles for its European leasing fleet over three years, with initial deliveries expected in the first half of 2024.

Earnings 

With reporting, the automaker provides investors quarterly revenue and shipment updates; first-year half and full-year results are published in July and February. Stellantis NV is expected to release its 2024 half-year results in July 2024. To invest in Stellantis NV, you can click here or head over to your EasyUSD account.