2023-07-26 07:53:36 ET
Automaker Stellantis N.V. ( NYSE: STLA ) reported solid results for the first half of the year amid what it says is a cost-effective product pivot to electrified and software-defined vehicles across its 14 iconic brands.
Revenue increased 12% year-over-year in the first half of the year to €98.4B, primarily due to a higher level of shipments. Adjusted operating income rose 11% to €14.1B, with a strong 14.4% margin. More than half of the adjusted operating income was generated from the North America business. Consolidated net profit shot up 37% year-over-year to €10.9B.
The electrification of the Stellantis ( STLA ) product lineup led to global BEV and LEV sales up 24% year-over year to around 169K units and up 28% year-over-year to around 315K units, respectively. Stellantis ( STLA ) noted that it now ranks third in EU-30 overall BEV sales and second in the U.S. market for LEV sales. Stellantis ( STLA ) highlighted that it currently has 25 BEVs available today and another 23 launching through 2024. In addition to inaugurating the ACC gigafactory in France, the company recently announced plans to build a second StarPlus Energy gigafactory in the U.S. together with Samsung SDI. Stellantis Ventures made 11 key investments since its founding in March 2022, including in breakthrough lithium-sulfur EV battery technology from Lyten Inc. that does not use nickel, cobalt or manganese.
On the capital allocation front, Stellantis executed on €0.7B of the €1.5B share buyback program as of June 30. The automaker expects to complete the program before the end of 2023. Over €6B has been returned to STLA shareholders and employees related to fiscal year 2022 in dividends and bonuses.
Shares of Stellantis ( SFM ) rose 2.11% in premarket action on Wednesday to $18.51 vs. the 52-week trading range of $11.57 to $18.97.
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Stellantis rallies after boosting profit amid electric vehicle push