Stellantis (STLA) — the parent company of Chrysler and Fiat, among other brands — reported full-year results and announced a new share buyback plan that sent the stock higher, despite warning of a “turbulent” year ahead.

For 2023, Stellantis reported revenue of 189.5 billion euros ($204 billion) vs. 189.3 billion euros ($204 billion) estimated, which was up 6% compared to 2022, with global deliveries increasing 7%. Adjusted net income came in at 18.6 billion euros ($20.04 billion) vs. 18.4 billion euros ($19.83 billion) expected, up 11% compared to a year ago. Adjusted operating income rose 1% to 24.3 billion euros ($26.2 billion) with adjusted operating income margin of 12.8%

The Netherlands-based Stellantis, the last Big Three automaker to report earnings this cycle, also said it will repurchase 3 billion euros ($3.2 billion) of shares this year, adding to a buyback from last year. The company also announced a dividend of 1.55 euros ($1.67) per share, up 16% compared to last year.

On the downside, the United Auto Workers (UAW) strike that lingered into October hit operating margins, with its adjusted operating income margin dropping to 11.2% in the second half of the year from 12.3% in the same period in 2022. This led the adjusted operating income for the second half of the year to slide 10% to 10.2 billion euros ($10.9 billion).

Stellantis previously said the strikes hit profits by $808.1 million last year and by approximately $3.23 billion in terms of revenue. But because of higher pricing power, the post-strike labor costs won’t affect Stellantis as much as they will Ford (F) or GM (GM). "So the impact for us is certainly going to be on an overall level lower than what you've seen from our peers," CFO Natalie Knight said in a media call.

Looking ahead, Stellantis projected a minimum commitment of double-digit adjusted operating income margin in 2024 and positive industrial cash flow but warned of a tough year ahead.

"There’s a much more normalized supply environment, a much more normalized pricing environment than what we’ve seen in the past," Knight said in the media call. "We’re resilient for what we think is going to be a pretty turbulent year." She added on the earnings call that "there's more headwinds that there are tailwinds."

In its presentation, Stellantis said headwinds included factors like the impact of the EV product mix, lower prices, and labor costs that would weigh on the adjusted operating income margin in 2024.

Outlook and flexible EV game plan

On the flip side, Stellantis' measured approach to EVs is paying off for the automaker, as it didn’t go all in on full EVs. Stellantis said it is No. 1 in PHEV (plug-in hybrid electric) sales in the US (136,000), doubling sales year over year, with industry-leading margins for its cars in the US. Models like the Jeep Wrangler and Grand Cherokee 4xe PHEVs have been selling well, though the company will have its fully electric Jeep Wagoneer S going on sale in the fall of this year.