GM Beats Q4 Expectations, Forecasts Strong 2025 Despite Challenges

DETROIT — General Motors (GM) surpassed Wall Street‘s expectations for the fourth quarter of 2024, reporting strong financial results and projecting continued growth for 2025 despite industry challenges. The automaker announced net income attributable to stockholders of $11.2 billion to $12.5 billion, with adjusted earnings before interest and taxes (EBIT) ranging from $13.7 billion to $15.7 billion.

GM’s 2025 guidance exceeded many analyst forecasts, with adjusted automotive free cash flow projected between $11 billion and $13 billion. The company’s 2024 performance included record adjusted EBIT of $14.9 billion and $14 billion in adjusted auto free cash flow. However, net income was impacted by a $3 billion loss in the fourth quarter, driven by $5 billion in special charges, including $4 billion in noncash restructuring costs and $500 million related to discontinuing funding for its Cruise robotaxi business.

CFO Paul Jacobson described 2024 as “outstanding,” highlighting growth in both electric vehicle (EV) and traditional internal combustion engine businesses. GM’s revenue for the year increased 9.1% to $187.44 billion, with North American operations contributing $14.53 billion in adjusted earnings, up 18.1% from 2023. However, international operations, including South Korea, Brazil, and the Middle East, saw a 75% decline in adjusted earnings to $303 million.

In China, GM reported positive equity income for the fourth quarter before restructuring costs. CEO Mary Barra emphasized the company’s efforts to improve its position in the region without additional capital injections from the U.S. “We’re taking steps with our partner to improve from there,” Barra said in a shareholder letter.

GM expects to roll out new products, including EVs, to drive sales and earnings in 2025. The company anticipates a $2 billion to $4 billion profit improvement, based on wholesale volumes of approximately 300,000 EVs, a 59% increase from 2024. Jacobson noted that GM will focus on scale, fixed cost absorption, and cost reductions to enhance EV profitability.

Looking ahead, GM plans to return value to shareholders and reduce automotive debt, including $1.75 billion maturing in 2025. The company also expects U.S. vehicle sales to remain steady at over 16 million units, with pricing declines of 1% to 1.5%. Barra acknowledged potential challenges from regulatory uncertainty, including trade, tax, and environmental policies, but expressed confidence in GM’s ability to adapt. “We have a broad and deep portfolio of vehicles that are growing market share,” she said.

GM’s leadership has engaged with policymakers, including President Donald Trump, to address concerns about tariffs and regulatory changes. Trump has proposed a 25% tariff on goods from Canada and Mexico, which could impact vehicle imports. Despite these uncertainties, GM remains optimistic about its ability to navigate the evolving landscape and deliver strong results in 2025.