Detroit — General Motors stock fell more than 8% in trading Tuesday even as the company beat Wall Street’s top- and bottom-line expectations for the fourth quarter, while forecasting continued strong results for 2025.
Concerns of Wall Street analysts on the company’s quarterly earnings call focused on GM’s preparation for changes under the Trump administration, including the impacts of potential tariffs on vehicle production and policy changes on electric vehicle sales and pricing, signaling an overhang on the auto industry.
GM’s 2025 guidance includes net income attributable to stockholders of $11.2 billion to $12.5 billion, or $11 to $12 in earnings per share; adjusted earnings before interest and taxes (EBIT) of $13.7 billion to $15.7 billion, or $11 to $12 adjusted EPS; and adjusted automotive free cash flow between $11 billion and $13 billion.
GM’s 2025 financial guidance met or exceeded many forecasts from Wall Street analysts. Most notably, analysts were expecting adjusted earnings of around $14 billion. The company’s 2024 results were a record for the automaker, with adjusted EBIT of $14.9 billion, or $10.60 adjusted EPS, and net income attributable to stockholders of $6 billion, or $6.37 EPS.
GM’s revenue in the fourth quarter was $47.7 billion, up 11% from the same period last year. The company’s North American operations continued to carry the automaker’s earnings, with adjusted earnings increasing 18.1% compared with 2023 to $14.53 billion, or a 9.2% adjusted profit margin.
The company’s international operations reported adjusted earnings of $303 million last year, down 75% compared with 2023, and its equity income from China was a loss of $4.41 billion, largely due to the restructuring actions. GM expects a $2 billion to $4 billion improvement this year compared with 2024, based on wholesale volumes of about 300,000 EVs, a roughly 59% increase from the 189,000 units in 2024.
GM expects to continue rolling out new products to assist its sales and earnings, including electric vehicles, which the company said reached a targeted profitability on a production basis during the fourth quarter. The company also plans to continue looking for opportunities to return value to shareholders and pay down its automotive debt, including $1.75 billion that matures this year.