GM Q1 2022 earnings were headlined by $2.2 billion in income on $36 billion in revenue. Compared to the first quarter of 2021, the results represent a 33.3 percent drop in income and a 10.8 percent growth in revenue.
The results were supported by the following factors:
- Continued robust customer demand for GM products
- Continued strong performance at GM Financial, GM’s captive finance arm
GM Q1 2022 Earnings Summary
Figures in millions of USD, except for per share amounts and percentages.1. EPS-diluted and EPS-diluted-adjusted include a $(0.05) and $0.12 impact from revaluation on equity investments in the three months ended June 30, 2022 and 2021.
Q1 2022 | Q1 2021 | Q1 2022 - Q1 2021 | % CHANGE Q1 2022 / Q1 2021 | |
---|---|---|---|---|
GAAP METRICS | ||||
NET REVENUE | $36.0 | $32.5 | $+3.5 | +10.8% |
OPERATING INCOME | $2.2 | $3.3 | $-1.1 | -33.3% |
NET INCOME ATTRIBUTED TO STOCKHOLDERS | $2.9 | $3.0 | $-0.1 | -3.3% |
NET INCOME MARGIN | 8.2% | 9.3% | -1.1% | N/A |
EARNINGS PER SHARE (EPS) DILUTED | $1.35 | $2.03 | $-0.68 | -33.5% |
NET CASH PROVIDED BY OPERATING ACTIVITIES | $2.1 | $1.3 | $+0.80 | +61.5% |
NON GAAP METRICS | ||||
EBIT-ADJUSTED | $4.0 | $4.4 | $-0.4 | -9.1% |
EBIT-ADJUSTED MARGIN | 13.6% | 11.2% | 2.4% | N/A |
ADJUSTED AUTOMOTIVE FREE CASH FLOW | $0 | -$1,932 | $1,932 | +100% |
EPS DILUTED - ADJUSTED1 | $2.09 | $2.25 | $-0.2 | -7.1% |
DIVISIONAL RESULTS | ||||
GM NORTH AMERICA EBIT-ADJUSTED | $3.1 | $3.1 | $0.0 | 0% |
- GM NORTH AMERICA EBIT-ADJUSTED MARGIN | 10.7% | 12.1% | -1.4% | N/A |
GM INTERNATIONAL EBIT-ADJUSTED | $0.1 | $0.0 | $+0.1 | - |
- GM INTERNATIONAL EBIT-ADJUSTED MARGIN | 2.8% | 0.0% | 2.8% | N/A |
GM CHINA EQUITY INCOME | $0.2 | $0.3 | $-0.1 | -33.3% |
- GM CHINA NI/REV | 5.6% | 5.9% | -0.3% | N/A |
CRUISE EBIT-ADJUSTED | -$0.3 | -$0.2 | $-0.1 | -50% |
GM FINANCIAL EBT-ADJUSTED | $1.3 | $1.2 | $+0.1 | +8.3% |
- GM FINANCIAL RETURN ON AVERAGE TANGIBLE COMMON EQUITY | 32.9% | 27.3% | 5.6% | N/A |
Global Sales & Share
GM recorded 1,427 million vehicle deliveries globally during the quarter. That’s a drop of 22 percent compared to the 1,744 million during the same time frame a year ago.
GM’s global market share in the markets where it competes was 9.1 percent during Q1 2022, down from 9.9 percent during the same time period a year ago as a result of timing of semiconductor impact and availability of dealer inventory.
GM North America
GM North America (GMNA), General Motors’ largest and most profitable division, posted:
- $29.5 billion in revenue vs. $26.0 billion in revenue in the year-ago quarter
- $3.1 billion EBIT-adjusted vs. $3.1 billion in the year-ago quarter
GM International
GM International (GMI), which excludes GM China joint venture earnings, posted:
- $3.3 billion in revenue vs. $3.1 billion in the year-ago quarter
- $0.1 billion EBIT-adjusted vs. $0.0 billion in the year-ago quarter
- 137K vehicles in wholesales vs. 157K in the year-ago quarter
GM China Auto Joint Venture
GM China auto joint venture posted:
- $9.0 billion in revenue vs. $9.9 billion in the year-ago quarter
- $0.2 billion in equity income vs. $0.3 billion in the year-ago quarter
- 602K vehicles in wholesales vs. 675K vehicles in the year-ago quarter
GM Cruise
Cruise, GM’s division that’s working on developing and bringing to market a robo-taxi service, posted:
- $0.0 billion in revenue vs. $0.0 billion in the year-ago quarter
- -$0.3 billion in EBIT-adjusted vs. -$0.2 billion in the year-ago quarter
GM Financial
GM Financial, General Motors’ captive finance arm, posted:
- $1.3 billion EBT-adjusted vs. $1.2 billion in the year-ago quarter
- 32.9 percent in return on average tangible commodity equity and 27.3 percent in the year-ago quarter
- $2.9 billion in liquidity vs. $29.2 billion in the year-ago quarter
- $7.49x leverage ratio vs. 7.94x in the year-ago quarter
Guidance
GM reaffirmed its full-year 2022 guidance, while also boosting the expectations of some metrics. For instance, EBIT-adjusted remains at the same $13.0 billion to $15.0 billion provided earlier. The same can be said of adjusted automotive free cash flow, which hasn’t changed from the $7.0 billion to $9.0 billion guidance issued earlier. However, Earnings per Share (EPS) diluted-adjusted saw a slight jump from $6.25-$7.25 guidance issued previously to $6.50-$7.50.
All figures assume continued steady demand for new vehicles and no significant new economic or supply chain challenges.
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Comments
Amazing what happens when you sell a mid-level truck for what a High Country/Denali cost 2 years ago.
Congratulations. Well done in one of the toughest businesses on the planet.
Some people make a sport out of badmouthing and bashing GM on this site. Would like these actors be pragmatic and rational. We are presently in crazy high inflation and troublesome times. Be kind to your fellow man.
Someone is smoking shrooms with Mary.
Bootlicker much?
lol that’s gag inducing
Ya, GM vehicles are so bad, all Bara’s fault according to the misogynists, that no one is buying them.
Wonder how the Ford boys fell about their full-size pickups being outsold in 2020, 2021, and Q1 2022 by the Silverado/Sierra twins.. And the GM full size SUVs have 70% market share in Q1’22, adding to the 50%+ market share GM has had for the past 15 years.
Fortunately the recession is coming.
Good luck buying that $75,000 truck with 10% interest rates.
Except, for those who are well qualified (like Myself) GM financial still offers me 0% financing on select vehicles and 2.1% on any other vehicle , I have been a repeat customer with GM for over 2 decades now and they reward my loyalty with good interest rates.
This chip shortage, for GM, is kind of a blessing in disguise. It is forcing The General to prioritize high margin models (Silverado/Sierra, Tahoe, Yukon, Escalade, Corvette & now new expensice EVs coming on line (Lyriq, Hunner, Silverado EV). EVs go require more chips but Hummer will be far more profitable than Encire GX or Enclave.
A GM only focused on high end products in the US, and with a FCA-like dealership model, would help The Company compete with Tesla on revenue, margins and products. New EVs would help rebuild brands as far more premium that the current Chevrolet, GMC, not to mention hobbled Buick and Cadillac.
I’m not optimistic regarding a Cadillac EV rebirth but these are great vehicles that could be sold as GMC or even Avenir without Buick badging and only the cook new logo.