GM Surpasses Q4 2024 Estimates, Projects Strong 2025 Earnings

General Motors reported solid fourth-quarter financial results, surpassing analysts’ expectations. Revenue for the last three months of fiscal year 2024 came in at $47.7 billion compared to Wall Street predictions of $43.93 billion. GM’s earnings per share (EPS) were $1.92, above previous estimates of $1.89.

Along with the higher-than-expected Q4 earnings, GM sees a very similar 2025. According to the company’s projections, 2025 adjusted earnings before interest and taxes (EBIT) will range from $13.7 billion to $15.7 billion, roughly $11 to $12 EPS. For comparison, its 2024 adjusted EBIT reached $14.9 billion, or $10.60 EPS. The automaker’s 2025 guidance is mostly in line with analysts’ outlook of approximately $14 billion in adjusted earnings.

While the new year looks promising, GM CEO Mary Barra noted some unclear market conditions that the company will need to navigate. However, after speaking with U.S. officials, including President Donald Trump, Barra seems confident about the near future.

“There is uncertainty over trade, tax, and environmental regulations and we have been proactive with Congress and the administration,” Barra wrote in the company’s recent shareholder letter. “In our conversations, we have stressed the importance of a strong manufacturing sector and American leadership in advanced technologies.”

GM’s EV Initiatives for 2025

GM is continuing to innovate and introduce new vehicles, including a push in the electric vehicle segment. While struggling in the past with producing EVs that make a profit, the company is on a path to improve this year.

The automaker expects a 59% increase in wholesale volumes of EVs, anticipating an output of 300,000 units in 2025. With that kind of volume, it predicts a $2 billion to $4 billion increase over last year.

“We do think that we can grow our EV demand,” said CFO Paul Jacobson, per CNBC. “We’re going to continue to see how EV adoption progresses in 2025, but the 300,000 is the assumption that we base on being at the low end of the $2 billion to $4 billion of profit improvement.”

Even though Tesla is the No. 1 seller of EVs in the U.S., GM plans to erode some of that market share. Earlier this month, the Detroit automaker boldly stated it is making strategic moves to lead the EV luxury segment in 2025. As part of the initiative, GM is heavily promoting its Cadillac brand, especially with its luxury $80,000 Lyriq-V and $130,000 Escalade IQ EV models.