Stellantis Delivered Record Financials Despite Getting Bitten By The UAW Strike

Despite the hit made by the six weeks-long UAW strike, Stellantis N.V. STLA reported otherwise strong earnings for the full year. But the global auto giant reported a profit drop during the second half of 2023 due to halted production.

Stellantis Still Delivered Record 2023 Results, But They Were Not Stellar

Stellantis CEO Carlos Tavares admitted that aside from the UAW industrial action, Stellantis’ U.S. performance was not stellar, despite 2023 being the third consecutive year of record results since the company was formed by a merger of Fiat Chrysler and PSA Groupe at the beginning of 2021.

Stellantis was the only major automaker to report a decline in U.S. sales last year. While Stellantis’ market share dropped below 10%, Hyundai Motor Company HYMTF outsold Stellantis for the first time ever. Hyundai, that consists of Kia, Genesis and Hyundai brands, had a very good year. As it surpassed Stellantis, Hyundai became the fourth best-selling automaker in the U.S. With its sales rising 12.1% to 1,652,821 units, Hyundai is now behind General Motors GM, Toyota Motor TM and Ford Motor F. 

Ford Went From 2022’s Loss To 2023’s Profit

On February 6th, Ford Motor topped fourth quarter estimates and forecasted better-than-expected 2024 outlook. For the full year, Ford reported revenue rose 11% YoY to $176.2 billion. Ford reported overall revenue grew 4% to $46 billion with automotive revenue for the quarter amounting to $43.2 billion, topping LSEG’s estimate of $40.12 billion. But even though Ford had a solid year, it admitted it still wasn’t near its earnings potential. Although Ford posted a $4.3 billion profit for the full year, it also recorded a fourth quarter loss.

Ford CEO Jim Farley summed up 2023 as a foundational year for Ford’s future with cost improvements and modification of its strategy that includes hybrids which are expected to boost this year’s sales by 40%.

GM Is Well Positioned For Another Strong Year

Back in January, General Motors also topped Wall Street estimates and guided for strong 2024 profit despite headwinds. For the fourth quarter, GM reported flat revenue of $42.98 billion, topping LSEG’s estimate of $38.67 billion. Net income for stockholders amounted to $2.1 billion, or $1.59 per share with adjusted earnings per share of $1.24 topping LSEG’s estimate of $1.16. As for 2023, GM reported revenue increased 10% YoY to $171.84 billion, a net income of $10.13 billion.

Stellantis’ financial highlights show it is poised for a rock solid year.

For the full year, Stellantis repored net revenue rose 6% YoY to 189.5 billion euros with a 7% rise in consolidated shipment volume. Adjusted operating income for the year rose 1% to 24.3 billion euros, and industrial free cash flow grew 19% to 12.9 billion euros.

Stellantis’ earnings showed the automaker’s resilience to the impact of the industrial action, but it couldn’t avoid getting hit. Moreover, its financial results prove that three years after its inception, the world’s third-largest automaker by revenues deserved its place among global leaders in the automotive industry. Stellantis reiterated it plans to commit at least 30 billion euros to EVs and supporting technologies through 2025. This year, Stellantis plans to launch 18 new EVs in 2024, including eight in the U.S. Despite expecting a turbulent year ahead, Stellantis is confident of delivering another year of solid performance.

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