Stellantis Surges After Reporting Record Revenue and Announcing $3.2B Buyback

Stellantis ( STLA ) shares jumped over 6% in intraday trading after the Jeep maker reported record high net revenue and net profit for 2023 and announced a $3.2 billion buyback program.

Stellantis reported record revenue of $204.12 billion (189.5 billion euros) for 2023, up 6% from 2022. The Chrysler parent’s profit of $20.02 billion (18.6 billion euros) hit a record high as well, up 11% from the year prior.

Adjusted operating income rose to $26.19 billion (24.3 billion euros) but the automaker’s margin at 12.8% was down from 13% in 2022 as costs associated with the United Auto Workers (UAW) strike squeezed margins.

Stellantis lost an estimated $3 billion in revenue and $800 billion in profit from the UAW strike, though its losses were less significant than those of other Big Three automakers Ford ( F ) and General Motors ( GM ), according to Cox Automotive.

The automaker reported a 21% increase in global battery EV sales in 2023. Chief Executive Officer (CEO) Carlos Tavares said that Stellantis’ EVs are returning a profit and that the company will not slow down its EV transition plans, as other traditional automakers including Ford and GM pull back on EVs.

Stellantis has also benefited from American demand for hybrids rather than pure battery EVs, noting its plug-in hybrids held the number-one spot in the U.S.

CFRA analysts said that the firm “view[s] STLA as one of the best plays on the surging popularity of hybrids” and upgraded its rating to “buy” from “hold.”

Stellantis shares were up 6.7% at $26.03 as of about 3:20 p.m. ET Thursday. They’ve gained 53% over the past year.