GM to Announce Earnings Before Market Opens; Wall Street Anticipates EV Write-Downs

• Expected Q4 results show 4% revenue decline to $45.8 billion versus prior year, but adjusted earnings per share up more than 14%
• GM will record substantial write-downs for EV pullback and China restructuring that will impact net income but not adjusted earnings
• Company's 2025 guidance targets $12-13 billion adjusted EBIT ($9.75-$10.50 EPS) and $10-11 billion adjusted automotive free cash flow, representing improvement over 2024

Summary: GM Q4 Earnings Report and EV Restructuring

Key Earnings Expectations:

General Motors reports fourth-quarter and full-year 2024 earnings Tuesday before market open, with an earnings call scheduled for 8:30 a.m. EST.

Wall Street consensus (per LSEG):

• Revenue: $45.8 billion expected (4% decline year-over-year)
• Adjusted EPS: Expected increase of more than 14% versus prior year

Q4 2024 Performance Context:

Fourth quarter 2024 results included:

• Revenue: $47.7 billion
• Net loss attributable to stockholders: approximately $3 billion
• Adjusted EBIT: $2.5 billion

Critical Developments:

GM will record significant write-downs in Q4 2025 related to its electric vehicle pullback and China restructuring efforts. These charges, announced earlier this month, will impact net income but exclude adjusted earnings metrics.

2025 Guidance:

CEO reconfirmed expectations for 2025 results to exceed 2024 performance:

• Adjusted EBIT: $12-13 billion
• Adjusted EPS: $9.75-10.50
• Adjusted automotive free cash flow: $10-11 billion (up from $7.5-10 billion previously)

Market Implications:

Investors will closely monitor management's 2025 outlook and commentary on EV strategy adjustments. The restructuring charges signal GM's strategic pivot amid challenging EV market conditions and ongoing difficulties in the Chinese market. The improving free cash flow guidance suggests operational resilience despite headwinds in key growth areas.

The earnings report comes at a pivotal moment as traditional automakers reassess aggressive EV investments amid slower-than-expected consumer adoption.