General Motors (GM) continued its strong run of quarterly performance last year on Tuesday, with full-year profit that came in at the high end of its range and upbeat forward guidance.
But challenges still remain for the US automaker in 2025, with its electric vehicle business and manufacturing footprint possibly under threat from new White House regulations.
For the fourth quarter, GM posted revenue of $47.70 billion, compared with $44.46 billion per Bloomberg estimates. That’s 11% more than the $42.98 billion the company reported a year ago.
GM reported adjusted earnings per share (EPS) of $1.92, versus the $1.83 expected. Adjusted earnings before interest and taxes (EBIT) was $2.509 billion, up 42.8% compared to a year ago. For full-year 2024, GM earned $14.9 billion in adjusted EBIT.
Following GM’s third quarter results, the automaker boosted its guidance for the third time, forecasting 2024 adjusted profit of $14.0 billion to $15.0 billion. Metrics like full-year automotive operating cash flow and adjusted automotive free cash flow came in at or above that guidance. But EPS diluted for the year did not, owing to charges the company took with its China business and Cruise self-driving unit, which came in at $4 billion and $500 million, respectively.
Nonetheless, GM now sees 2025 profit coming in at a range of $13.7 billion to $15.7 billion, with a lower low bound but a higher upper bound than in 2024. Diluted as well as adjusted EPS is seen at $11.00 to $12.00 for the year.
GM did not model the effects of potential tariffs or loss of federal EV tax credits from the Trump administration in their guidance forecasts. GM doesn’t assume these policy moves will happen, but will adjust based on the outcomes, GM CEO Mary Barra said in an interview with Yahoo Finance.
“Well, I think he [President Trump] very much understands exactly what the ramifications will be [of tariffs]. And I think they’ve been very clear that they want to make sure there’s the right and balanced relationships with many of the different countries that they’re talking about to accomplish the goals of his administration,” Barra said. “So I do think he has a very good understanding of the implications of tariffs or changing IRA [Inflation Reduction Act] or the stringency from a [emissions] standards perspective.”
While GM didn’t model these scenarios in its forward guidance, it does have a “playbook” and has been preparing for various outcomes based on where Trump’s policies may go, GM CFO Paul Jacobson said in a call with reporters.
