Q124 GM earnings

earnings summary

Earnings Results • Q1 EBIT adjusted of $3.9 billion, up year-over-year • Q1 EBIT-adjusted margin of 9.0% • Q1 EPS diluted adjusted of $2.62 • Q1 adjusted automotive free cash flow of $1.1 billion, up significantly from flat in Q1 2023

Future Guidance • Updated full year guidance:

• EBIT adjusted range raised to $12.5-14.5 billion
• EPS diluted adjusted range raised to $9-10
• Adjusted automotive free cash flow range raised to $8.5-10.5 billion • On track to achieve 200,000-300,000 Ultium-based EV production and wholesale volume target for 2024 • Expects EVs to reach positive variable profit in second half of 2024 and mid-single digit margins in 2025

GM delivered strong Q1 2024 earnings, driven by robust performance in its North American business, improving EV profitability, and effective cost control measures. The company grew revenue by 8% year-over-year to $43 billion, achieved a 10.6% EBIT-adjusted margin in North America, and generated healthy cash flow. GM is seeing strong demand for its refreshed ICE portfolio and growing momentum in its EV lineup, with models like the Cadillac LYRIQ and Chevrolet Blazer EV gaining traction.

Looking ahead, GM raised its full-year guidance across key financial metrics, reflecting confidence in its ability to execute its strategy. The company remains on track to significantly ramp up EV production in 2024, targeting 200,000-300,000 Ultium-based vehicles, while expecting to reach EV profitability milestones in the coming years. GM is focused on driving EV adoption through compelling products with superior range and performance.

The company is navigating an evolving pricing environment, with some pressure expected but Q1 trending better than anticipated. GM is closely monitoring the market and aims to balance pricing, profitability, and demand. Cost reduction efforts and improving scale in EVs are expected to support margins.

Notable quotes: • “We again grew retail shares and market share in the U.S. during the quarter with incentives that remained well below the industry average, especially in our truck business.” - Mary Barra • “We remain confident that when consumers see our new EVs and get a chance to drive them, they will appreciate the unique combination of design, performance, range and value that we offer at multiple price points.” - Paul Jacobson • “I feel very good about where we are, and I think we’ve got momentum… 2024 can be a very strong year for GM.” - Mary Barra