Despite facing a challenging fourth quarter in 2024, General Motors managed to achieve an EBIT-adjusted of $2.5 billion.

General Motors (GM) reported a challenging fourth quarter for 2024, marked by a net income loss of $3.0 billion. This downturn was primarily driven by $5 billion in special charges, which included $4 billion related to restructuring and impairments in its China joint ventures, alongside $0.5 billion in costs associated with halting investments in the Cruise robotaxi venture. However, the quartlery results still beat market expectations.

General Motors Reports Better than Expected Fourth Quarter Results

Despite these hurdles, GM managed to achieve an EBIT-adjusted of $2.5 billion, reflecting a 42.8% increase compared to the previous year.

Revenue for the quarter rose to $47.7 billion, an 11% increase from the same period in 2023, showcasing the company’s ability to drive sales despite a challenging environment.In terms of operational cash flow, GM reported $4.8 billion in automotive operating cash flow for the quarter, a slight increase from the $4.7 billion reported in the same quarter of the previous year. Adjusted automotive free cash flow also saw a significant improvement, rising to $1.8 billion, up from $1.3 billion in the prior year.

The company posted an earnings per share (EPS) of $1.92, surpassing the adjusted EPS of $1.24 from the previous year and the expected EPS of $1.72. Meanwhile, GM’s revenue of $47.7 billion exceeded the expected $42.73 billion, indicating strong sales momentum despite the challenges.

Comparing the full-year results, GM’s net income attributable to stockholders was $6.0 billion, a significant decline from the $10.1 billion recorded in 2023. The full-year EPS-diluted was $6.37, down from $7.32 in the previous year.

However, the adjusted EPS-diluted for the year was $10.60, reflecting a robust improvement from $7.68 in 2023, suggesting that the company’s core operations remained resilient amidst external pressures. The company’s EBIT-adjusted for the year stood at $14.9 billion, surpassing the previous year’s $12.4 billion, indicating improved operational efficiency and cost management.

GM Expects Adjusted EBIT Range of $13.7 to $15.7 Billion for 2025

Looking ahead, GM has provided optimistic guidance for 2025, projecting a net income attributable to stockholders between $11.2 billion and $12.5 billion. The company anticipates an EBIT-adjusted range of $13.7 billion to $15.7 billion, reflecting strong financial performance expectations.

GM’s guidance also includes an EPS-diluted range of $11.00 to $12.00, suggesting confidence in the company’s ability to navigate the evolving automotive landscape and capitalize on growth opportunities.GM’s 2025 financial outlook assumes a stable policy environment in North America and anticipates a $0.5 billion benefit from reduced expenses at Cruise. The company plans to invest $10.0 billion to $11.0 billion in capital expenditures, with a focus on advancing its battery cell manufacturing joint ventures.

As GM navigates the complexities of the automotive industry, the company remains focused on delivering new products and experiences that resonate with customers. The company’s strategy involves reducing costs associated with electric vehicle manufacturing and capitalizing on the growing demand for crossovers, SUVs, and full-size pickup trucks.

GM’s significant presence in China, despite the challenges, continues to be a focal point for growth and expansion. Furthermore, GM is poised to leverage its joint ventures and partnerships to enhance its market position and drive long-term value. The company’s emphasis on developing captive financing capabilities through GM Financial is expected to bolster its financial performance.

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