The GM logo appears on the front of General Motors headquarters in Detroit on March 16, 2021.
Rebecca Cook Reuters
Detroit – General Motors Wall Street’s expectations of the highest level in Wall Street for the fourth quarter, while predicting strong results for 2025.
Detroit Motors believe it can enjoy another strong year despite the slowdown in industry sales, restructuring its operations in China, and increased geopolitical and organizational uncertainty in the United States as President Donald Trump begins his second term.
General Motors 2025 guidance includes Net income is due to shareholders from $ 11.2 billion to $ 12.5 billion, or $ 11 to $ 12 of profits per share; The modified profits before interest and taxes (EBIT) ranges between 13.7 billion dollars to 15.7 billion dollars, or $ 11 to $ 12. Amending the car -free cash flow between 11 billion dollars and 13 billion dollars.
GM 2025 directive from General Motors or exceeded many predictions from Wall Street. It is worth noting that analysts expected modified profits of about 14 billion dollars.
This is compared to the results of the modified EBIT 2024 car maker of EBIT of $ 14.9 billion, or $ 10.60 of a modified arrow profit, and net income that is attributed to $ 6 billion shareholders, or $ 6.37 shares. General Motors said the modified numbers and $ 14 billion in the cash flow free of modified cars were records of the auto industry.
GM CFO Paul Jacobson said that the company’s 2025 instructions do not take into account any possible organizational changes such as customs tariffs on vehicle imports or tax repair.
Here’s how the company performs in the fourth quarter, compared to the average estimates collected by LSEG:
- Arrow’s profits: $ 1.92 modified for $ 1.89
- profit: 47.7 billion dollars for $ 43.93 billion
Jacobson said that the company’s 2024 performance was “great”, pointing to growth in its traditional companies in the internal combustion engine.
The GM 2024 net income was disabled with a loss of about 3 billion dollars during the fourth quarter. During the past three months of the year, net income included $ 5 billion of private fees, such as $ 4 billion in non -thinning restructuring fees related to its operations in China and $ 500 million of fees related to the decision to stop financing the Robotaki journey.
The net net income, which is attributed to the shareholders last year, decreased from the net income that is due to the stock campaign last year by 40.7 % from 2023.
General Motors said last month that she expects to restructure her joint operations with Saic Motor Corp.
General Motors’s revenues increased last year to 187.44 billion dollars, an increase of 9.1 % over 2023.
Regions
General Motors operations in North America continued to tend for a period of years in carrying the profits of the auto manufacturer. Its modified profits in North America increased by 18.1 % compared to 2023 to 14.53 billion dollars, which equals 9.2 % average profit margin.
Detroit International Motors – such as South Korea, Brazil and the Middle East – have reported a modified profit of $ 303 million last year, a decrease of 75 % compared to 2023. The shares entered it. From China was a loss of $ 4.41 billion, due to restructuring procedures.
“In China, we have reported a positive income for shares for the fourth quarter before restructuring the costs, and we are taking steps with our partner to improve from there,” said Marie Para, CEO of General Motors in a letter to shareholders.
Jacobson repeated that the company expects to restructure operations without pumping more capital from the United States to China.
EVS
Regardless of its financial results, General Motors said she expects to continue to offer new products to help their sales and profits. This includes electric cars, which said the company has reached a profitability targeted on the basis of production during the fourth quarter.
General Motors expects a $ 2 billion to $ 4 billion this year compared to 2024, based on wholesale sizes of about 300,000 volts. This will be an increase of approximately 59 % over 189,000 units in 2024 – slightly less than the previously announced goal of 200,000 volts, as the auto manufacturer tried to reduce its days of supply at the end of the year.
General Motors Mark Ross’s President during the disclosure of Cadillac Escalade Escalade on August 9, 2023 in New York City.
Michael Weaend / CNBC
“We think we can develop our request,” said Jacobson. “We will continue to know how EV’s dependence is progressing in 2025, but the 300,000 is an assumption that we rely on being at the end of the lowest from $ 2 billion to $ 4 billion in improving profits.”
General Motors said it expects sized improvements, absorbing the fixed cost, and the constant focus on cell and cars cost discounts to pay improved profits for the next year.
In addition, in 2025, Jacobson said that General Motors will continue to search for opportunities to return the value to shareholders as well as pay the company’s debts to cars, including $ 1.75 billion ripening this year. He said that the company retired early 750 million dollars in debt in December, in addition to completing the recycling of shares to reduce the number of suspended shares to less than a billion to end the year.
For the entire United States industry, Jacobson said that General Motors expects new vehicle sales to be relatively level this year compared to the last 16 million cars. Detroit Motors expect vehicle pricing, which has decreased from record levels in recent years, to a decrease between 1 % and 1.5 %.
Organizational uncertainty
Bara noted, in the shareholders’ speech, that “uncertainty about trade, taxes and environmental regulations” may affect the car industry.
She said that the company is “proactive with Congress and management” on the importance of American manufacturing and “American leadership in advanced technologies.”
“It is clear that we share a lot of common land, and we appreciate the dialogue,” said Barra, who spoke with Trump before its opening. “Whatever is happening on these fronts, we have a wide and deep range of vehicles (internal combustion engine) and EVS that grows market share, and we will be graceful and we are carried out as possible as possible.”
General Motors formerly CNBC told the Para conversation with Trump was “friendly and productive.”
Trump discussed the implementation of a 25 % tariff on the goods from Canada and Mexico, which may affect the vehicles that are imported to the United States
However, most of the major car manufacturers have factories in the United States, they still rely heavily on imports from other countries, including Mexico, to meet the American demand for consumers.
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