General Motors (GM) sees more electrified financials in its future.
GM CFO Paul Jacobson told Yahoo Finance on Tuesday the company is eyeing $2 billion to $4 billion of additional improvements in its EV profitability in 2025. This comes as the company is finally gaining traction in its electric vehicle business after years of investment, due to some cost rationalization and assistance from government tax credits.
The company said it delivered 32,000 EVs in the third quarter. Popular sellers included the new Cadillac Lyriq and Chevy Blazer EV crossovers.
For 2024, GM said it will produce and wholesale 200,000 EVs. Jacobson reaffirmed a target of hitting “positive variable profits” for the EV division this year.
Next year, GM will roll out new EVs such as the Cadillac Optiq and the redesigned Bolt.
The auto giant once again surprised the Street with its performance and outlook.
GM reported third quarter sales rose 10.5% year over year to $48.8 billion, besting analyst estimates for $44.6 billion. The company called out success with pickup trucks such as the Silverado and Sierra, and crossovers like the Trax.
Adjusted earnings per share of $2.96 improved 29.8% versus a year ago, well ahead of consensus forecasts for $2.43. Earnings were in part fueled by GM’s ongoing aggressive share repurchase activity — in the quarter it reduced its share count by 19% from the prior year.
Jacobson said GM will continue to execute share repurchases in 2025 to win over skeptics on the stock.
GM stock was up 2% in early trading.
The company hiked its annual profit forecast. GM sees full-year adjusted earnings of $10 to $10.50 a share. Previously, it had modeled $9.50 to $10.50 a share.
“We believe this was a large step in the right direction as management continues to navigate the choppy waters and ultimately, was a long-awaited turnaround for the GM story proving testament to GM’s performance following its goals to balance production and profitability,” Wedbush analyst Dan Ives wrote in a client note.
Ives reiterated an Outperform rating on GM’s stock.
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