GM Surpasses Q1 Expectations, Raises Guidance with EV Profitability in Sight
Maxdailynews— 27 MayGM Surpasses Q1 Expectations, Raises Guidance with EV Profitability in Sight
- GM reported strong first-quarter results, beating analyst expectations and raising its full-year guidance.
- The automaker posted revenue of $43.0 billion, up 7% year-over-year, and adjusted EPS of $2.62, ahead of estimates.
- GM expects to see "positive variable profit" in its EV business in the second half of 2024, driven by strong sales of models like the Cadillac LYRIQ, Hummer EV, and Silverado EV.
Strong Performance Across the Board
- GM's adjusted EBIT (earnings before interest and taxes) came in at $3.9 billion, surpassing estimates of $3.12 billion.
- Operating profit reached $3.7 billion, topping projections of $3.12 billion.
- GM achieved a 15% compound annual growth rate in sales over the past 24 months and anticipates generating over $30 billion in automotive adjusted free cash flow between 2022 and 2024.
EV Outlook and Sales Updates
- GM reiterated its projection of "positive variable profit" in its EV business during the second half of 2024, with around 200,000 EVs sold by year-end.
- The company expects its EV business to improve its EBIT margin by 60 points from 2023 to 2024, reaching "mid-single digit EBIT margin" by 2025.
- In Q1, GM delivered 594,233 vehicles, a 1.5% decrease year-over-year, but with a 6% increase in retail sales.