January 28, 2025
General Motors Co. ( NYSE:GM ) just posted an impressive Q4 2024 earnings results and 2025 outlook, showcasing robust performance.
The company reported revenue of $47.7 billion for the fourth quarter of 2024, reflecting an 11% gain over the past year. The number surpassed Bloomberg's $44.46 billion estimate. GM saw strong demand across its product portfolio particularly in North America.
However, net income attributable to shareholders for the fourth quarter 2024 was a loss of $3 billion and EBIT-adjusted was $2.5 billion. The loss was due to $4 billion charges of non-cash restructuring charges and impairment in China Joint Ventures and $0.5 billion charge to stop funding the Cruise robotaxi business.
GM acquired a controlling stake in Cruise Automation back in 2016 but recently decided to stop funding it and prefer paying the charge to focus on developing driver-assistance technologies for personal vehicles.
For the full year 2024, GM reported a revenue of $187.44 billion , an increase from $171.84 billion revenue in 2023. However, the bottom line shows that GM's net income for the full year 2024 was $6 billion, compared to $10.12 billion in 2023. Charges incurred in the last quarter of 2024 reduces significantly the overall net income for the year.
GM has raised its 2025 guidance, projecting a net profit attributable to stockholders in the range of $11.2 billion to $12.5 billion, with EPS diluted around $11.00 to $12.00. The company assumes a more favorable policy environment in North America and predicts to benefit from $0.5 billion in reduced expenses related to Cruise funding. The financial guidance includes capital spending of $10-11 billion which covers the company's investment in battery cell manufacturing joint ventures.
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