01—Abstract
Summary
Summary of the 8-K filed July 23, 2024. Cited figures are marked; the original filing is the authoritative source.
General Motors reported second-quarter 2024 revenue of $48.0 billiona, up 7.2% year over year, with net income attributable to stockholders of $2.9 billion (up 14.3%) and EBIT-adjusted of $4.4 billion (up 37.2%).
EBIT-adjusted margin expanded 2.1 points to 9.3%, driven primarily by GMNA, whose EBIT-adjusted rose 38.8% to $4.4 billionb on a 10.9% margin. Diluted EPS was $2.55 and adjusted diluted EPS was $3.06, up 60.2%, helped by a sharply lower share count of roughly 1.15 billion diluted shares versus 1.39 billion a year earlier, reflecting heavy share repurchases. The quarter was not uniformly strong.
GMI's EBIT-adjusted fell 78.8% to $50 millionc, China equity income swung to a $104 million loss, and Cruise posted a $458 million segment loss that included $583 million of restructuring charges following the pause of its driverless operations. Adjusted automotive free cash flow declined 4.5% to $5.3 billion in the quarter, although year-to-date it rose 18% to $6.4 billion. GM raised its full-year 2024 guidance for the second consecutive quarter.
EBIT-adjusted guidance moved to $13.0d-15.0 billion from $12.5-14.5 billion, adjusted automotive free cash flow to $9.5-11.5 billion from $8.5-10.5 billion, and adjusted EPS to $9.50-10.50 from $9.00-10.00. GAAP diluted EPS guidance was essentially unchanged at $8.93-9.93, so the increase is driven mainly by adjustments for special items. Capital spending guidance is $10.5-11.5 billion, including battery cell joint venture investments.
02—Key points
Key Highlights
- Q2 2024 revenue of $48.0B (+7.2% YoY); net income attributable to stockholders of $2.9B (+14.3%)
- EBIT-adjusted of $4.4B (+37.2%) with margin up 2.1 points to 9.3%, led by GMNA EBIT-adjusted of $4.4B (+38.8%, 10.9% margin)
- Adjusted diluted EPS of $3.06 (+60.2%) versus GAAP diluted EPS of $2.55 (+39.3%); diluted share count fell to about 1.15B from 1.39B
- Raised full-year 2024 guidance: EBIT-adjusted to $13.0-15.0B, adjusted automotive FCF to $9.5-11.5B, adjusted EPS to $9.50-10.50
- GMI EBIT-adjusted fell 78.8% to $50M and China equity loss of $104M signal continued pressure in international operations
- Cruise segment loss of $458M in Q2 included $583M of restructuring charges after the pause of driverless operations
- Adjusted automotive free cash flow of $5.3B in Q2 (-4.5% YoY) but up 18% to $6.4B year to date
03—Questions
Frequently Asked Questions
Why did GM raise its full-year 2024 guidance?
GM raised EBIT-adjusted, adjusted automotive free cash flow and adjusted EPS guidance, citing strong first-half North American performance and cash generation. Most of the increase in adjusted EPS guidance reflects adjustments for special items; GAAP diluted EPS guidance was roughly unchanged at $8.93-9.93.
What is driving the strong EPS growth despite modest revenue growth?
Profit growth is driven mainly by GMNA margin expansion, with EBIT-adjusted margin up 2.1 points. Share repurchases also contributed, as diluted weighted-average shares fell from 1.39 billion to 1.15 billion, which boosts per-share results.
What are the main risks or weak spots in the quarter?
GMI earnings collapsed (EBIT-adjusted down 78.8%), China joint ventures posted an equity loss, and Cruise continued to lose money with a $458M segment loss including restructuring charges. Q2 adjusted automotive free cash flow also declined 4.5% year over year, and capital spending remains elevated at $10.5-11.5B for 2024.
How significant were the special items and adjustments this quarter?
Total EBIT adjustments were $761M in Q2, led by $583M in Cruise restructuring costs, $103M from the GMI plant wind-down in Colombia and Ecuador, and $75M in Buick dealer transition costs. These adjustments are excluded from non-GAAP measures, so investors should weigh GAAP results alongside the adjusted figures.
04—Continue