Stellantis backs AOI, free cash flow and capital return targets at investor day

At the first Stellantis investor day in Auburn Hills, Michigan, CEO Carlos Tavares will outline the company’s nine key strategic differentiators. CFO Natalie Knight and other members of the top executive team will share updates on the company’s regions, functions and brands. Stellantis management confirms its 2024 financial guidance and capital return plan: double-digit adjusted operating Income, or AOI, margin and positive industrial free cash flows. Delivering EUR 7.7B in dividends and buybacks in 2024. CFO Natalie Knight will reiterate more specific color on first and second-half expectations within the 2024 period: first half outlook of 10%-11% AOI margin, with industrial free cash flows visibly below the prior year period. Significant product launches, cost initiatives and anticipated improvement in working capital together support H2 sequential improvement opportunity in AOI and industrial free cash flow. Stellantis is also updating its capital plan in several significant ways: setting target liquidity levels of 25%-30% of revenues for the medium-term, shifting focus to capital efficiency and supporting strong shareholder returns. The company will continue to use share buybacks and ordinary dividends to return excess cash to shareholders. In 2025, Stellantis will target the upper range of its 25-30% dividend payout policy vs. 25% in recent years.