General Motors (GM) surpassed Wall Street expectations for fourth-quarter revenue and earnings, reporting adjusted earnings per share of $1.92 against an estimated $1.89 and revenue of $47.7 billion compared to an expected $43.93 billion.
The Detroit automaker also unveiled a positive 2025 outlook, forecasting net income attributable to stockholders of $11.2 billion to $12.5 billion, adjusted EBIT of $13.7 billion to $15.7 billion, and automotive free cash flow between $11 billion and $13 billion.
2024 Performance and 2025 Projections
In 2024, GM achieved a record adjusted EBIT of $14.9 billion, or $10.60 per share, with revenue increasing 9.1% year-over-year to $187.44 billion. GM’s adjusted financial results were strong despite a $3 billion net loss in the fourth quarter—primarily due to $5 billion in special charges from restructuring its Chinese operations and discontinuing funding for the Cruise robotaxi program. CFO Paul Jacobson highlighted the company’s growth in both electric vehicles and traditional internal combustion engines, calling 2024 an “outstanding” year.
Looking ahead, GM expects continued growth in EV production. It forecasts a 59% increase in EV wholesale volumes to 300,000 units in 2025, up from 189,000 in 2024. The company projects that EV profitability will improve by $2 billion to $4 billion, driven by scale efficiencies, cost reductions, and greater fixed-cost absorption.
Moreover, North America remained GM’s strongest market, contributing $14.53 billion in adjusted earnings in 2024—a 9.2% profit margin and an 18.1% increase from 2023. International operations, including South Korea, Brazil, and the Middle East, reported adjusted earnings of $303 million, a 75% decline from 2023. In China, GM posted a $4.41 billion equity loss, largely attributed to restructuring costs. CEO Mary Barra emphasized steps to stabilize the Chinese market without additional U.S. capital injections.
Regulatory and Market Considerations
However, the automaker acknowledged potential regulatory uncertainties, including trade policies under President Donald Trump’s second term. Barra cited ongoing dialogue with Congress and the administration, advocating for U.S. manufacturing and technological leadership. Trump’s proposed 25% tariff on imports from Canada and Mexico poses a significant risk for automakers reliant on foreign production. Nevertheless, Barra expressed confidence in GM’s agility to adapt to policy changes, underscoring the company’s robust portfolio of internal combustion and electric vehicles.
In addition to investing in EV growth, GM plans to enhance shareholder value in 2025 through stock repurchases and debt reduction. The company retired $750 million in debt in December 2024 and will address $1.75 billion maturing in 2025. GM also reduced its outstanding share count to below 1 billion by year-end.
