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General Motors Co 8-K Report, Financial Results (Oct 22, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 22, 2024
Period End
October 22, 2024
Security
GM
In the record · 2016–202610-K1110-Q338-K154

GM filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 154 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 22, 2024. Cited figures are marked; the original filing is the authoritative source.

General Motors reported third-quarter 2024 revenue of $48.8 billiona, up 10.5% year over year, and EBIT-adjusted of $4.1 billion, up 15.5%, with the EBIT-adjusted margin rising to 8.4% from 8.1%.

Net income attributable to stockholders was roughly flat at $3.1 billionb (down 0.3%), because higher income tax expense (effective tax rate of 19.1% versus 13.6%), lower automotive interest income, and $417 million of special-item adjustments offset the operating improvement. Diluted EPS rose 21.8% to $2.68, and adjusted diluted EPS rose 29.8% to $2.96. Per-share growth was supported by a lower share count, which fell to roughly 1.13 billion diluted shares from 1.38 billion a year earlier.

GMNA was the main driver, with EBIT-adjusted of $4.0 billionc (up 12.9%) and a 9.7% margin. Performance outside North America was weak. GMI EBIT-adjusted fell 88% to $42 million, and China equity income swung to a $137 million loss from $192 million income, while China market share dropped to 6.5% from 8.3%.

GM Financial EBT-adjusted declined 7.3% to $687 milliond. Cruise's segment loss narrowed to $383 million from $732 million, though the company continues to take restructuring charges tied to its voluntary pause of driverless operations. GM raised the low end and narrowed its 2024 outlook for the third consecutive quarter.

EBIT-adjusted guidance is now $14.0 billion to $15.0 billion, adjusted EPS guidance is $10.00 to $10.50, and adjusted automotive free cash flow guidance was raised sharply to $12.5 billion to $13.5 billion from $9.5 billion to $11.5 billion. Net income guidance was narrowed to $10.4 billion to $11.1 billion. Investors should weigh the strong cash flow upgrade against the continued pressure in China, international operations, and Cruise, as well as the rising level of special-item charges.

02—Key points

Key Highlights

  1. Q3 2024 revenue of $48.8 billion rose 10.5% year over year, while net income attributable to stockholders was flat at $3.1 billion (down 0.3%).
  2. EBIT-adjusted rose 15.5% to $4.1 billion, with margin expanding to 8.4% from 8.1%, led by GMNA EBIT-adjusted of $4.0 billion (9.7% margin).
  3. Diluted EPS rose 21.8% to $2.68 and adjusted diluted EPS rose 29.8% to $2.96, helped by a sharply lower weighted-average diluted share count (1,131 million versus 1,378 million).
  4. Adjusted automotive free cash flow guidance was raised to $12.5 billion to $13.5 billion from $9.5 billion to $11.5 billion, and automotive operating cash flow guidance rose to $22.0 billion to $24.0 billion.
  5. EBIT-adjusted guidance was narrowed to $14.0 billion to $15.0 billion (low end raised from $13.0 billion), and adjusted EPS guidance was narrowed to $10.00 to $10.50.
  6. International weakness continued: GMI EBIT-adjusted fell 88% to $42 million, China equity income turned to a $137 million loss, and China market share fell to 6.5% from 8.3%.
  7. Special-item adjustments totaled $417 million in the quarter, including restructuring actions ($190 million), Buick dealer strategy ($150 million), GMI plant wind-down ($43 million) and headquarters relocation ($34 million), and the effective tax rate increased to 19.1% from 13.6%.

03—Questions

Frequently Asked Questions

  1. Why did net income stay flat even though EBIT-adjusted grew 15.5%?

    The gap comes from items below EBIT-adjusted. Income tax expense rose to $709 million from $470 million, pushing the effective tax rate to 19.1% from 13.6%. Automotive interest income also fell to $274 million from $322 million, and the company excluded $417 million of special-item charges from EBIT-adjusted, which still reduce GAAP net income.

  2. Did GM change its 2024 guidance, and what does it imply?

    Yes. GM narrowed its net income guidance to $10.4 billion to $11.1 billion from $10.0 billion to $11.4 billion, and raised the low end of EBIT-adjusted guidance to $14.0 billion from $13.0 billion, with the top end at $15.0 billion. Adjusted EPS guidance is $10.00 to $10.50 versus $9.50 to $10.50 previously. The guidance implies a stronger second half of the year than the company had previously expected, with much of the improvement reflected in cash flow.

  3. Why is the cash flow guidance raised so much?

    Adjusted automotive free cash flow guidance rose to $12.5 billion to $13.5 billion from $9.5 billion to $11.5 billion. Automotive operating cash flow guidance rose to $22.0 billion to $24.0 billion from $19.2 billion to $22.2 billion. Capital expenditure guidance was unchanged at $10.0 billion to $11.0 billion for automotive, so the increase reflects stronger operating cash generation rather than lower investment. Nine-month automotive operating cash flow was $19.2 billion, which supports the revised outlook.

  4. What are the main risks highlighted in the results?

    The filing points to several pressure points: China, where GM's market share fell to 6.5% from 8.3% and the Automotive China JVs posted an equity loss; GMI, where EBIT-adjusted fell 88%; Cruise, which continues to incur restructuring and operating losses after pausing driverless operations; and rising special-item charges, which totaled $1.27 billion for the first nine months of 2024. GM Financial earnings also declined 7.3% year over year.

04—Continue

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