GM Posts Record 2024 EBIT, EPS and Cash Flow

Ken Zino of AutoInformed.com on GM Posts Record 2024 EBIT, EPS and Cash Flow

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General Motors (NYSE: GM) today posted full-year 2024 net income attributable to shareholders of $6.0 billion at an EBIT-adjusted $14.9 billion. Full-year revenue increased ~9% to $187.4 billion. Investors in GM earned a 50% total return as GM ended the year with an outstanding share count of 995 million ahead of its announced buyback plan. Fourth quarter net income was reduced by more than $5 billion in special charges, primarily by $4 billion of non-cash restructuring charges and impairment of GM interests in certain China Joint Ventures, and $0.5 billion in charges related to the decision to stop funding the Cruise robotaxi business.

“A year ago, I said that we were optimistic about 2024 given the choice we would offer customers, including industry-leading full-size pickups, new and redesigned SUVs and an expanding portfolio of EVs, said GM Chair and CEO Mary Barra. “I also said that we would focus on execution and profitability, and our performance has been consistently strong.”

Ken Zino of AutoInformed.com on GM Posts Record 2024 EBIT, EPS and Cash Flow

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“We grew full-year revenue 9%, once again we led the U.S. market in total, retail, and fleet deliveries, we grew our market share, and we distanced ourselves from the industry’s pricing, incentive, and inventory pressures. We doubled our EV market share over the course of the year as we scaled production, and our portfolio became variable profit positive in the fourth quarter. In China, we reported positive equity income for the fourth quarter before restructuring costs, and we’re taking steps with our partner to improve from there. This combination of compelling vehicles in high volume and growing segments, strong execution, and discipline led directly to record EBIT-adjusted, record adjusted automotive free cash flow, and record EPS-diluted-adjusted,” Barra said.

GM’s U.S. hourly employees again earned the industry’s highest profit sharing, totaling more than $640 million. This is a record payout of up to $14,500 per person, equal to more than two months of extra pay on average for UAW-represented workers.

Ken Zino of AutoInformed.com on GM Posts Record 2024 EBIT, EPS and Cash Flow

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The Trump Wild Card?

Both Barra and GM Chief Financial Officer Paul Jacobson spent a lot of time answering repeated question from stock analysts (many of whom have consistently under-rated GM’s performance – AutoCrat) about the effects of the Trump Administration, which in the past has destroyed manufacturing jobs and failed to fulfill other promises.

“Back in November of 23, we talked about scale being the most important driver in the in the short to medium term and then battery cost improvements and other vehicle cost improvements starting to kick in after that,” said Paul Jacobson “Since that disclosure and certainly what we saw throughout 2024 where we were talking about 200,000 to 300,000 units we came in just a touch below 200 – but still achieved our variable profit positive goal. The volume trajectory and the growth and therefore the realization of the scale benefits is coming in a little slower. So with 300,000 units, we think that’s a good trajectory based on what we’ve seen over the last six months as we’ve picked up share in EV’s and the vehicle mix is continuing to get a little bit richer with the Escalade IQ et cetera. We think we can still deliver the low end of that $2 to $4 billion of savings improvement even though it’s on lower volume than where we thought we would be.”

“Going forward we’re going to continue to watch what happens to consumer tax credits, what happens to IRA et cetera. There’s a lot of moving parts out there, what I would say. Is whether we’re talking about IRA or tariffs, we’ve got multiple playbooks that we’ve been working on to make sure that we can respond or even anticipate some of those moves. Some of those are very low cost and we can be very flexible with them. Some of them are bigger deals,” said CFO Jacobsen.

“Of course, there is uncertainty over trade, tax, and environmental regulations and we have been proactive with Congress and the administration. In our conversations, we have stressed the importance of a strong manufacturing sector and American leadership in advanced technologies. It’s clear that we share a lot of common ground, and we appreciate the dialogue. Whatever happens on these fronts, we have a broad and deep portfolio of ICE vehicles and EVs that are both growing market share, and we’ll be agile and execute as efficiently as possible,” said Barra.

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