General Motors (Game) He continued his strong run of quarterly performance last year on Tuesday, with a full -year profit that came in at the end of a high range and guidance in advance.
But challenges remains for the United States automation in 2025, with its electric vehicle business and potentially threatened manufacturing footprint from the new White House regulations.
For the fourth quarter, GM posted revenue of $ 47.70 billion, compared to $ 44.46 billion to all Bloomberg estimates. That's 11% more than the $ 42.98 billion reported a year ago.
GM reported adjusted earnings per share (EPS) of $ 1.92, reported against the expected $ 1.83. Adjusted pre -interest and tax (EBIT) earnings were $ 2.509 billion, up 42.8% compared to a year ago. For the full year of 2024, a $ 14.9 billion GM won in a customized ebit.
Following the third -quarter results of a GM, the automaker promoted its guidance for the third time, predicting 2024 adjusted profits from $ 14.0 billion to $ 15.0 billion. Metrics such as full -year automotive operating cash flow and customized automotive cash flow came on that guide or higher. But EPS did not weaken for the year, due to accusations that the company took with its China business unit and self-driving cruise, which came in at $ 4 billion and $ 500 million, respectively.
Nevertheless, GM now sees profit 2025 coming in at a range of $ 13.7 billion to $ 15.7 billion, with lower low binding but maximum binding higher than in 2024. Seeed diluted EPS as well as EPs Adjust at $ 11.00 to $ 12.00 for the year.
GM did not model the effects of potential tariffs or lose Federal EV tax credits from the Trump administration in their guidance prospects. GM does not assume these policy movements will take place, but will adjust based on the results, says GM Barra CEO Interview with Yahoo Finance.
President Donald Trump is talking to reporters on board one air force as he travels from Las Vegas to Miami on Saturday, January 25, 2025. (Photo/Mark Schiefelbein) ·Press
“Well, I think he (President Trump) really understands what the implications will be (from tariffs). And I think they have been very clear that they want to make sure the right and balanced relationships Many of the different countries they are talking about to achieve the goals of his administration, “Barra said. “So I think he has a very good understanding of the implications of tariffs or IRA change (Inflation Reduction Act) or the austerity in terms of standards (emissions).”
While GM would not model these scenarios in its guidance, it has a “playbook” and has been preparing for various results based on where Trump's policies might go, GM CFO Paul Jacobson said in a call with reporters .
Barra also said that the potential loss of the federal EV tax credit could mean that GM takes “a larger proportion if there is a smaller market (EV)” because of the desirability of EV GM portfolio, although it sees EV demand going down if the tax Credit disappears.
Two major GM credits for the better results in the last quarter are improvements in its business and China EV operations.
“We doubled our EV market share during the year as we graduated production, and our portfolio became a varied profit in the fourth quarter,” Barra said in a letter to shareholders.
Barra added: “In China, we identified positive equity income for the fourth quarter before restructuring costs, and we are taking action with our partner to improve from there.”
Media members look at the Chevy Equinox EV at the North American International Auto Show in Detroit, Michigan on September 14, 2022. (Geoff Robins/AFP via Getty Images) ·Geoff Robins via Getty Images
Earlier in January, GM reported that CH4 sales 21% jumped from a year ago and were up 4% in 2024 to 2.7 million vehicles. He said full -size lifting sales were up for the fifth straight year, hitting their highest level since 2007. The sales of full -size SUVs like the Tahoe, suburban, and Yukon also drove a GM to win a category in the segment in the segment in the segment the 50th straight year.
But there may be some small challenges ahead for a US bread and gap business in the US.
“We assume that moderate headgums are in wholesale volumes and mix as we properly balance production inventory levels and dealers. We also take a pricing decline in North America-one to one and a half percent year on year , “Cfo Paul said Jacobson in a media call.
In June, GM announced a new share purchase plan to repurchase up to $ 6 billion of its remaining common shares. This was an addition to the $ 10 billion accelerated shares repurchase program (ASR) which introduced the end of last year, which was in conjunction with a plan to increase his 33%dividend, starting last January.
Jacobson said on the call, although no GM confirmed any new shareholdings or ASR programs, managers and the board would try to find a “prudent” way to expand those if possible.
As for its EVS, vehicles like the Cadillac Lyriq and Chevrolet Equinox EV have been selling well, but growth in the business has not been as fast as the originally anticipated company.
Despite achieving its variable profit target at CH4, Jacobson said GM is “wholesale” – or sold through various distribution channels such as retail, fleet, and government – total of 189,000 EVS in 2024, short of its 200,000 A projected.
However, GM anticipates 300,000 EV sales in 2025, Jacobson said. That is at the lower end of its internal projections, but enough volume to provide tail earnings from $ 2 billon to $ 4 billion in 2025 just from its EV business. The automaker has previously said that she expects to trim EV costs from $ 2 billion to $ 4 billion this year.
Pras Subramanian is a correspondent for Yahoo Finance. You can follow it on X and on Instagram.
