General Motors (GM) Posts Strong 2024 Results, Anticipates Challenges in 2025
Financial Performance
* Q4 2024 revenue: $47.70 billion (11% YoY increase)
* Adjusted EPS: $1.92 (vs. $1.83 expected)
* Full-year 2024 adjusted EBIT: $14.9 billion
Guidance for 2025
* Projected adjusted profit range: $13.7 billion - $15.7 billion (lower low-bound, higher upper-bound compared to 2024)
* Diluted and adjusted EPS: $11.00 - $12.00
Challenges and Opportunities
* Potential impact of new White House regulations on GM's electric vehicle business and manufacturing footprint
* Assumption of no tariffs or loss of EV tax credits, with adjustments to be made based on outcomes
* Potential market share gain in the EV segment if demand declines due to loss of tax credits
* Modest headwinds in wholesale volumes and pricing decline expected in North America
* Share buyback and ASR programs to continue being evaluated for potential expansion
Electric Vehicle Business
* EV market share doubled in 2024
* Variable profit positivity achieved in Q4
* 189,000 EVs wholesaled in 2024, falling short of 200,000 target
* Projected 300,000 EV sales in 2025, providing an earnings tailwind of $2 billion - $4 billion
* Ongoing cost-cutting efforts in the EV division