General Motors Exceeds Expectations, Projects Strong 2025 Performance

General Motors (GM) recently released its fourth-quarter 2024 results and a 2025 earnings forecast that surpassed Wall Street estimates. This positive performance was driven by continued strong demand for GM's premium gasoline-powered trucks and SUVs.

Key Highlights:

* Increased Earnings per Share: GM's adjusted earnings per share for 2024 reached $10.60, exceeding the market expectation of $10.39.
* Impressive Revenue: Revenue for the year reached $187 billion, surpassing estimates of $183 billion.
* Strong Vehicle Sales: GM sold 2.7 million vehicles in 2024, marking a 4% increase from the previous year.

2025 Guidance:

* Net Income Projection: GM estimates net income of $11.2 billion to $12.5 billion in 2025, topping analyst expectations of $10.8 billion.
* North American Pricing and Gas-Powered Vehicles: GM anticipates a modest decline in pricing power and gas-powered vehicle volume, maintaining its strong market position.

Electric Vehicle Progress:

* Improving Profitability: GM's battery-powered vehicles continue to reduce losses, with revenue exceeding fixed costs in 2024.
* Increased Wholesale Units: EV wholesale units reached 189,000 in 2024, and GM projects wholesale volume of 300,000 for 2025.
* Focus on Personal Vehicle Technology: GM is shifting its focus towards providing autonomous technology for personal vehicles, leading to savings from its Cruise unit.

Restructuring in China:

* Profitability Restored: GM's China business returned to profitability before restructuring charges in the fourth quarter of 2024.
* Capacity Reduction: GM and its Chinese joint venture partner are implementing restructuring initiatives to improve utilization levels to around 80%.

Financial Performance:

* Fourth-Quarter Revenue: $47.7 billion, surpassing analyst expectations of $43.9 billion.
* Adjusted Earnings per Share: $1.92, exceeding forecasts of $1.89.
* Cruise Charge: GM recorded a $500 million charge in the fourth quarter related to its Cruise autonomous business unit.