General Motors reports 11% revenue growth in Q4
GM outpaces expectations with 11% revenue growth in Q4
General Motors (GM) capped off a strong 2024 with impressive fourth-quarter results and full-year profits at the high end of its forecast.
For the fourth quarter, GM posted revenue of $47.7 billion, an 11% increase from $42.98 billion the previous year and ahead of Bloomberg estimates of $44.46 billion. The company’s adjusted earnings per share (EPS) were $1.92, exceeding analysts' expectations of $1.83, reports Yahoo!Finance.
Full-year adjusted earnings before interest and taxes (EBIT) reached $14.9 billion, solidly within GM's updated guidance of $14 billion to $15 billion. Metrics such as full-year automotive operating cash flow and free cash flow also came in strong.
However, diluted EPS for the year fell short, largely due to $4 billion in charges related to GM's China business and its Cruise self-driving unit, which also incurred $500 million in expenses.
2025 Outlook: Opportunities and Challenges
Looking ahead, GM projects 2025 adjusted profit between $13.7 billion and $15.7 billion, with diluted and adjusted EPS expected to range from $11.00 to $12.00. While the lower bound is slightly below 2024 levels, the higher upper bound signals confidence in continued growth.
Despite the optimism, GM faces hurdles in 2025. The company’s electric vehicle (EV) division and manufacturing footprint may be impacted by upcoming White House regulations, potentially adding compliance costs and operational constraints. These challenges come as carmakers race to meet ambitious EV targets in an increasingly competitive market.
GM’s strong 2024 performance underscores its resilience and adaptability, but looming regulatory and operational challenges in 2025 may test its ability to sustain momentum. Investors will watch closely as the carmaker navigates these headwinds while advancing its EV strategy.
Reminder, Hyundai Motor announced on Thursday that it is in discussions with General Motors (GM) to supply commercial electric vehicles (EVs) to its U.S. counterpart.
