PSA's recurring operating income jumped 43 percent to 5.69 billion euros ($6.46 billion), giving a 7.7 percent profit margin, helped by its acquisition of Opel-Vauxhall. Sales advanced 19 pct to 74.03 billion.
The financial performance "demonstrates the ability of our group to deliver a profitable and recurring growth", said Chief Executive Carlos Tavares.
Strong sales of its latest Peugeot SUVs have helped PSA to build on a steady recovery from near-bankruptcy in 2013-14. Tavares is applying the same discipline at the Opel division acquired from General Motors GM.N in 2017.
The Paris-based group said its 4.5 percent average margin goal for the 2019-2021 period would henceforth include the less profitable Opel-Vauxhall division, effectively raising the benchmark.
Chief Financial Officer Philippe de Rovira said the conservative "all-weather" objective covered the potential scenario in which Britain crashes out of the European Union in a no-deal "hard Brexit", as well as other market setbacks.
Peugeot's relatively confident tone was in contrast to its domestic rival Renault, which set out earlier in February a weaker full-year profit goal.