General Motors (GM) continued its strong three -month performance direction last year, with full profit for the full year that came at the high end of its range and the front instructions.
But the challenges still remain for the American automobile in 2025, with his electric vehicle business and the production trail perhaps threatened by the new White House regulations.
For the fourth quarter, GM posted $ 47.70 billion, compared to $ 44.46 billion for Bloomberg ratings. This is 11% more than $ 42.98 billion the company reported a year ago.
GM reported adjusted revenue (EPS) of $ 1.92, against $ 1.83 expected. Priority and tax (EBI) profits were $ 2,509 billion, with $ 42.8% compared to a year earlier. For the full year of 2024, GM earned $ 14.9 billion in the regulated EBIT.
Following the results of the third quarter of the GM, the automobile increased his instructions for the third time, predicting the regulated $ 2024 profit of $ 14.0 billion to $ 15.0 billion. Metrics such as full automobile cash flow and the regulated cash flow of regulated vehicles entered or above that instruction. But EPS was diluted this year, did not make, due to the allegations the company received with its business unit and self-direction of navigation in China, which included $ 4 billion and $ 500 million, respectively.
However, the GM now sees the 2025 profit of $ 13.7 billion up to $ 15.7 billion, with a low low limit, but a higher border than in 2024. Diluted and regulated EPS is seen at $ 11.00 to $ 12.00 per year.
GM did not model the effects of potential tariffs or loss of federal EV tax loans by the Trump administration in their instruction forecasts. GM does not assume that these policies moves will happen, but will be adapted based on the results, GM Mary Barra’s CEO said in an interview with Yahoo Finance.
President Donald Trump speaks to reporters on board Air Force One while he travels from Las Vegas to Miami on Saturday, January 25, 2025. (AP Photo/Mark Schiefelbein) ·Associate press
“Well, I think he [President Trump] Understands very precisely what the ramifications will be [of tariffs]. And I think they have been very clear that they want to make sure they have the right and balanced relationships with many of the different countries they are talking about to fulfill the goals of his administration, “Barra said.” So I think I think I think I think I think I think the burden. He has a very good understanding of fees or IRA change implications [Inflation Reduction Act] or rigor from a [emissions] Perspective of standards. “
While GM did not model these scenarios in its guidance forward, he has a “playbook book” and is preparing for various results based on where Trump’s policies can go, GM CFO Paul Jacobson said in a call with Reporters.
Barra also said that possible loss of federal tax loan EV may mean that GM gets “a larger if there is a smaller [EV] Market “Due to the desirability of the GM portfolio, though it sees the request to decrease if the tax loan is removed.
Two major reasons GM credit for the best results in the past quarter are improvements in his EV business and China’s operations.
“We doubled our market share during the year as we scale production, and our portfolio became a positive variable profit in the fourth trimester,” Barra said in a letter to shareholders.
The burden added: “In China, we reported a positive revenue of net capital for the fourth quarter before cost restructuring, and we are taking steps with our partner to improve from there.”
Media members look at Chevy Equinox EV at the Auto Show International Auto North America in Detroit, Michigan on September 14, 2022. (Geoff Robins/AFP through Getty Images) ·Geoff Robins through Getty Images
Earlier in January, GM reported that Q4 sales increased 21% a year earlier and increased 4% in 2024 to 2.7 million vehicles. He said full-size intake sales were ready for the fifth right year, hitting their highest level since 2007. Full-size SUVs sales like Tahoe, Suburban, and Yukon also pushed GM in a category win in the segment for 50s towards the year
But there may be some minor challenges ahead of the business of bread and GM buyer.
“We are assuming a modest head in wholesale and mixing volumes as we appropriately balance the levels of production and inventory of traders. We are also assuming a decline in prices in North America-one up to a half per cent throughout the year , “CFO Paul said Jacobson in a media call.
In June, the GM issued a new stock purchase plan to repurchase up to $ 6 billion of its usual unpaid shares. This was an addition to the accelerated stock repurchase program of $ 10 billion (ASR) that presented at the end of last year, which coincided with a plan to increase its dividend by 33%, beginning in January .
Jacobson said in the call that while GM did not confirm any new stock purchases or ASR programs, management and board would try to understand a “careful” way to expand them if possible.
As for its EVs, vehicles like Cadillac Lyric and Chevrolet Equinox EV have sold well, but the growth in the business has not been as fast as the company originally predicted.
Despite achieving its variable profit target at Q4, Jacobson said that GM “by wholesale” – or sold through various distribution channels such as retail, fleet and government – total 189,000 in 2024, falling on stage 200,000 projected.
However, GM envisions 300,000 EV sales in 2025, Jacobson said. This is at the bottom end of its internal predictions, but sufficient volume to provide a profit profit of $ 2 billion to $ 4 billion in 2025 only from its EV business. Automaker has previously said he is waiting to cut EV costs by $ 2 billion to $ 4 billion this year.
Pras Subramanian is a reporter for Yahoo Finance. You can follow it X and in Instagram.
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