Stellantis N.V. (NYSE:STLA) shares are trading lower premarket on Thursday. The company disclosed its capital return plan and confirmed its 2024 financial guidance.

Management confirms its 2024 guidance of double-digit Adjusted Operating Income (AOI) margin, positive industrial free cash flows, and a capital return plan of ≥€7.7 billion through dividends and buybacks.

Meanwhile, the company expects an Adjusted Operating Income (AOI) margin of 10-11%, with industrial free cash flows projected to be below the prior year’s levels in the first half of the year.

CFO Natalie Knight emphasizes that significant product launches, cost-saving initiatives, and anticipated improvements in working capital will contribute to potential AOI and industrial free cash flow growth in the second half of 2024.

For 2025, Stellantis targets achieving the upper end of its 25%-30% dividend payout policy, marking an increase from recent years.

The company aims to maintain liquidity levels equivalent to 25%-30% of revenues over the medium term and persist in using share buybacks and ordinary dividends to distribute excess cash to shareholders.

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Investors can gain exposure to the stock via First Trust BuyWrite Income ETF (NASDAQ:FTHI) and SPDR S&P Kensho New Economies Composite ETF (NYSE:KOMP).

Price Action: STLA shares are down 1.93% at $21.31 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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