PSA chairman Carlos Tavares hailed what he called the "historic results" despite an "extremely chaotic 2018" for the car market.
The Paris-based Groupe PSA said its net profit rose 47 percent to a record 2.83 billion euros in 2018, while recurring operating income soared 43 percent to 5.69 billion euros, also a new high.
The company said in a statement that it also posted a new record for revenue, which was up 18.9 percent to 74 billion euros, as well as for volume of sales.
But at a press conference on Tuesday Tavares warned that the automobile industry faced tough times ahead.
The sector is dealing with a series of challenges, including a slowing global economy, uncertainty over Brexit and new strict European Union emissions standards.
Because of the positive results, Tavares told FranceInfo radio station that French employees earning less than twice the minimum wage would receive a bonus of 3,810 euros.
The PSA boss also spoke of ambitions to increase sales outside Europe by 50 percent, including a Peugeot push in the United States, announced in 2016.
But, he said, the company is waiting for clarity from the US on tariffs for the cars, which would be imported from factories in Europe and China.