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General Motors (NYSE: GM) today reported Q1 2024 revenue of $43 billion, net income attributable to stockholders of $3.0 billion (+24%), EBIT-adjusted at $3.9 billion. Globally GM sold 1,347,000 vehicles during Q1, down slightly from 1,382,000 year-over-year. GM’s global market share was put at 8.1%.
“As we continue to strengthen our ICE [internal combustion engine] portfolio, scale EVs and reinvest in the business, we are very focused on capital efficiency, enhancing profitability and free cash flow, and we will continue to take steps to create shareholder value,” said CEO Mary T. Barra. GM has produced more than $23 billion of Auto Adjusted Free Cash Flow during the last 24 months, and expects to generate more than $30 billion in the 2022-2024 period.
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GM is updating its 2024 full-year earnings guidance, which includes projected capital spending of $10.5 billion – $11.5 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures. GM posted double-digit EBIT margins in North America, pricing is even, and GM gained retail market share with incentives much lower than the industry average.
In short GM beat analysts’ expectations and once again proved it is a major force in the global automotive market with both traditional internal combustion and various electrified vehicle types.*
Click to enlarge.
Barra also said that GM’s EVs will make a variable profit, not counting fixed costs, by the second half of 2024, as more EV capacity goes on line. GM is clearly concentrating now on generating cash flow, which is so endearing to investors because this likely means more share buybacks are coming. GM’ stated goal is to reduce outstanding shares to fewer than one billion. In the US, AutoInformed notes that the design, performance, range and value at various price points, means that a growing number of potential GM customers are there for the taking particularly with the $7500 tax credit that GM EVs qualify for.*
GM is also about to launch the Chevrolet Equinox EV, which at the moment will be the most affordable EV with more than 300 miles of range. Also coming are the Chevrolet Silverado EV RST and GMC Sierra EV Denali, which are purpose-built electric pickups with up to 440 miles of estimated range and incomparable towing capability. And the aforementioned expanding range of Cadillac EVs, including the OPTIQ and ESCALADE IQ SUVs.
Click to enlarge.
“GM’s fixed cost base is at its lowest since Q1 of 2022, and we’re on track to achieve the full $2 billion net of depreciation and amortization by the end of 2024,” Barra said. This of course is subject to review of consumer behavior in the challenged EV market. Retail demand for Ultium (the purpose built GM EV architectures) remains strong. Barra also cited lower battery material cost. “Collectively, these factors are helping improve vehicle profitability. For example, we have seen more than $12,000 a year-over-year cost savings in the Lyric now. As we continue, we expect to see the benefits from the production tax credit continue to grow and our fixed cost absorption to improve meaningfully. We wholesaled 22,000 Ultium-based EVs in Q1, up from less than 2000 in the first quarter of last year and remain on track to achieve our 200,000 to 300,000 unit production and wholesale volume target.”
*AutoInformed on
GM Posts $3 Billion in Q1 Earnings. Raises 2024 Guidance
Click to enlarge.
General Motors (NYSE: GM) today reported Q1 2024 revenue of $43 billion, net income attributable to stockholders of $3.0 billion (+24%), EBIT-adjusted at $3.9 billion. Globally GM sold 1,347,000 vehicles during Q1, down slightly from 1,382,000 year-over-year. GM’s global market share was put at 8.1%.
“As we continue to strengthen our ICE [internal combustion engine] portfolio, scale EVs and reinvest in the business, we are very focused on capital efficiency, enhancing profitability and free cash flow, and we will continue to take steps to create shareholder value,” said CEO Mary T. Barra. GM has produced more than $23 billion of Auto Adjusted Free Cash Flow during the last 24 months, and expects to generate more than $30 billion in the 2022-2024 period.
Click to enlarge.
GM is updating its 2024 full-year earnings guidance, which includes projected capital spending of $10.5 billion – $11.5 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures. GM posted double-digit EBIT margins in North America, pricing is even, and GM gained retail market share with incentives much lower than the industry average.
In short GM beat analysts’ expectations and once again proved it is a major force in the global automotive market with both traditional internal combustion and various electrified vehicle types.*
Click to enlarge.
Barra also said that GM’s EVs will make a variable profit, not counting fixed costs, by the second half of 2024, as more EV capacity goes on line. GM is clearly concentrating now on generating cash flow, which is so endearing to investors because this likely means more share buybacks are coming. GM’ stated goal is to reduce outstanding shares to fewer than one billion. In the US, AutoInformed notes that the design, performance, range and value at various price points, means that a growing number of potential GM customers are there for the taking particularly with the $7500 tax credit that GM EVs qualify for.*
GM is also about to launch the Chevrolet Equinox EV, which at the moment will be the most affordable EV with more than 300 miles of range. Also coming are the Chevrolet Silverado EV RST and GMC Sierra EV Denali, which are purpose-built electric pickups with up to 440 miles of estimated range and incomparable towing capability. And the aforementioned expanding range of Cadillac EVs, including the OPTIQ and ESCALADE IQ SUVs.
Click to enlarge.
“GM’s fixed cost base is at its lowest since Q1 of 2022, and we’re on track to achieve the full $2 billion net of depreciation and amortization by the end of 2024,” Barra said. This of course is subject to review of consumer behavior in the challenged EV market. Retail demand for Ultium (the purpose built GM EV architectures) remains strong. Barra also cited lower battery material cost. “Collectively, these factors are helping improve vehicle profitability. For example, we have seen more than $12,000 a year-over-year cost savings in the Lyric now. As we continue, we expect to see the benefits from the production tax credit continue to grow and our fixed cost absorption to improve meaningfully. We wholesaled 22,000 Ultium-based EVs in Q1, up from less than 2000 in the first quarter of last year and remain on track to achieve our 200,000 to 300,000 unit production and wholesale volume target.”
*AutoInformed on