General Motors Issues Upbeat Full-Year Earnings Outlook as Fourth-Quarter Results Top Views

General Motors (NYSE: GM) has issued an upbeat full-year earnings outlook for 2025, following strong fourth-quarter results that exceeded market expectations. The company reported net income attributable to stockholders of $6.0 billion and EBIT-adjusted of $14.9 billion for the full year, with adjusted EPS of $10.60. For the fourth quarter, GM reported a net loss of $3.0 billion, primarily due to special charges, but adjusted EPS came in at $1.92, up from $1.24 year-over-year.



GM's 2025 financial guidance assumes a stable policy environment in North America and an estimated benefit of $0.5 billion from reduced year-over-year expenses at Cruise. The company expects net income to range between $11.2 billion and $12.5 billion, with EBIT-adjusted between $13.7 billion and $15.7 billion. GM also anticipates capital spending of $10.0 billion to $11.0 billion, inclusive of investments in its battery cell manufacturing joint ventures.



The company's strong performance was driven by several key factors, including:

1. Growing EV portfolio and market share: GM's EV business became variable profit positive in the fourth quarter, and the company doubled its EV market share over the course of the year.
2. Strong execution and discipline: GM grew its market share, distanced itself from industry pricing incentives and inventory pressures, and achieved record EBIT-adjusted, record-adjusted automotive free cash flow, and record EPS-diluted-adjusted.
3. Addressing challenges: GM addressed challenges in China by working with its JV partners to drive better performance in the market and reported positive equity income for the fourth quarter before restructuring costs. The company also stopped funding robotaxi development at Cruise, refocusing its autonomous driving strategy on personal vehicles.

GM Chair and CEO Mary Barra expressed confidence in the company's ability to maintain growth and navigate potential market challenges, stating, "The momentum we have in both ICE vehicles and EVs will drive our results once again in 2025."



In conclusion, General Motors' upbeat full-year earnings outlook for 2025 reflects the company's confidence in its ability to maintain growth and navigate potential market challenges. The company's strong fourth-quarter results, driven by a growing EV portfolio, strong execution, and addressing challenges, position GM well for the coming year.