GM Q4 2023 earnings were headlined by $2.1 billion in net income on $43 billion in revenue. Compared to the fourth quarter of 2022, the results represent a 5.2 percent increase in net income and a 0.3 percent decrease in revenue.
The performance represents a net income margin of 4.9 percent, down 0.3 percentage points from 4.6 percent in Q4 2022. Earnings per share (EPS) diluted was $1.59, up $0.20 from $1.39 in Q4 2022.
GM Q4 2023 Earnings Summary
| METRIC | UNIT | Q4 2023 | Q4 2022 | CHANGE | % CHANGE |
|---|---|---|---|---|---|
| GAAP METRICS | |||||
| NET REVENUE | BILLION USD | $42,980 | $43,108 | $-128.0 | -0.3% |
| NET INCOME ATTRIBUTED TO STOCKHOLDERS | BILLION USD | $2,102 | $1,999 | $+103.0 | +5.2% |
| NET INCOME MARGIN | PERCENT | 4.9% | 4.6% | 0.3% | N/A |
| EARNINGS PER SHARE (EPS) DILUTED | USD PER SHARE | $1.59 | $1.39 | $+0.20 | +14.4% |
| NON GAAP METRICS | |||||
| EBIT-ADJUSTED | BILLION USD | $1,757 | $3,799 | $-2,042.0 | -53.8% |
| EBIT-ADJUSTED MARGIN | PERCENT | 4.1% | 8.8% | -4.7% | N/A |
| AUTOMOTIVE OPERATING CASH FLOW | BILLION USD | $4,688 | $7,488 | -$2,800.0 | -37.4% |
| ADJUSTED AUTOMOTIVE FREE CASH FLOW | BILLION USD | $1,341 | $4,460 | -$3,119.0 | -69.9% |
| EPS DILUTED - ADJUSTED1 | BILLION USD | $1.24 | $2.12 | $-0.9 | -41.5% |
| DELIVERIES | MILLIONS OF VEHICLES | 1,604 | 1,553 | 51 | +3.3% |
| MARKET SHARE (IN GM MARKETS) | PERCENT | 8.5% | 9.1% | -0.6% | N/A |
| DIVISIONAL RESULTS | |||||
| GM NORTH AMERICA EBIT-ADJUSTED | BILLION USD | $2.0 | $3.7 | $-1.7 | -45.9% |
| GM INTERNATIONAL EBIT-ADJUSTED | MILLION USD | $0.2 | $0.1 | $+0.1 | +100% |
| GM CHINA EQUITY INCOME | MILLION USD | $0.1 | $0.2 | $-0.1 | -50% |
| CRUISE EBIT-ADJUSTED | MILLION USD | -$0.8 | -$0.5 | $-0.3 | -60% |
| GM FINANCIAL EBT-ADJUSTED | MILLION USD | $0.7 | $0.8 | $-0.1 | -12.5% |
Earnings
Earnings Before Interest and Taxes, adjusted (EBIT-adjusted) was $1.7 billion, down 53.8 percent or $2 billion compared to the $3.7 billion during the year-ago quarter. Net income margin was 4.9 percent, down 0.3 percentage points, and EBIT-adjusted margin was 4.1 percent, down 4.7 percentage points versus 8.8 percent during the fourth quarter of 2022.
Global Sales & Share
GM recorded 1,604 million vehicle deliveries globally during the quarter, up 3.3 percent or around 51K units year-over-year compared to the 1,553 million deliveries during the same time frame a year ago.
GM Q4 2023 Global Deliveries
Vehicle sales in hundreds of thousands of units (000)| Q4 2023 / Q4 2022 | Q4 2023 | Q4 2022 | |
|---|---|---|---|
| Global Deliveries | +3% | 1,604 | 1,553 |
| North America | +2% | 747 | 729 |
| - U.S.A | 0% | 625 | 623 |
| Asia/Pacific, Middle East and Africa | +5% | 735 | 700 |
| - China | -1% | 569 | 576 |
| South America | -2% | 121 | 124 |
| - Brazil | +5% | 92 | 88 |
GM’s global market share in the markets where it competes was 8.5 percent during Q4 2023, up slightly from the 9.1 percent share during the same time period a year ago.
Chevrolet Silverado 1500
GM North America
GM North America (GMNA), General Motors’ largest and most profitable division, posted:
- $35.2 billion in revenue vs. $35.5 billion in the year-ago quarter
- $2.0 billion EBIT-adjusted vs. $3.7 billion in the year-ago quarter
- The drop was mainly driven by EV inventory allowance adjustments, and the strike impact, which were partially offset by favorable pricing and lower fixed costs
- 747K vehicle deliveries vs. 729K in the year-ago quarter
- U.S. dealer inventory was at 457K units vs. 411K in the year-ago quarter
- U.S. GM EV sales totaled 19.5K units for 6.9 percent market share vs. 16.3K units and 7.7 percent market share in the year-ago quarter
Chevrolet Onix Hatchback offered in South America and China
GM International
GM International (GMI), which excludes GM China joint venture earnings, posted:
- $3.9 billion in revenue vs. $4.3 billion in the year-ago quarter
- $0.2 billion EBIT-adjusted for an EBIT-adjusted margin of 4.5 percent vs. $0.1 billion and an EBIT-adjusted margin of 1.6 percent in the year-ago quarter
- 161K vehicle wholesales vs. 180K in the year-ago quarter
Buick Verano Pro offered in China
GM China Auto Joint Venture
GM China auto joint venture posted:
- $9.6 billion in net revenue vs. $10.4 billion in the year-ago quarter
- $0.1 billion in equity income vs. $0.2 billion in the year-ago quarter
- 753K vehicle wholesales vs. 796K in the year-ago quarter
Cruise Origin robo-taxi
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
- $(0.8) billion in EBIT-adjusted vs. $(0.5) billion in the year-ago quarter on increased expenses as Cruise pursues the commercialization of AV technology
Cadillac Lyriq
GM Financial
GM Financial, General Motors’ captive finance arm, posted:
- $0.7 billion EBT-adjusted and a 17.3 percent Return on Average Tangible Common Equity (RATCE) vs. $0.8 billion and 25.1 percent RATCE in the year-ago quarter
- $29.9 billion in liquidity and 8.32x Leverage Ratio vs. $28.5 billion and 7.91x Leverage Ratio in the year-ago quarter
- $117.6 billion in ending earning assets vs. $109.3 billion in the year-ago quarter
- GM Financial accounted for 38.6 percent of GM U.S. retail sales (by units) vs. 39.7 percent in the year-ago quarter
GMC Sierra 1500 AT4X
Guidance
GM provided guidance ranges for 2024, as follows:
- Net income attributable to stockholders: $9.8 billion – $11.2 billion
- EBIT-adjusted: $12.0 billion – $14.0 billion
- Automotive operating cash flow: $18.0 billion – $21.0 billion
- Adjusted automotive free cash flow: $8.0 billion – $10.0 billion
- EPS-diluted: $8.50 – $9.50
- EPS-diluted-adjusted: $8.50 – $9.50
- Both EPS guidance figures include an estimated $1.45 per share impact from the company’s accelerated share repurchase program, initiated in November 2023, based on current share price and offset by $0.50 from a higher tax rate and lower interest income. It assumes a full-year weighted-average diluted share count slightly below $1.15 billion shares.
GMC Hummer EV SUV (left) and GMC Hummer EV Pickup (right)
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Comments
In spite of the tough year, strike and all the web experts they did well.
Yeah was just gonna say. For all the bellyachers and doomsayers claiming GM will go bankrupt it sounds like they are doing pretty well and are on track for growth. Albeit slight growth but moving in the right direction regardless.
Like usual on this kind of news, the Mary Barra bashing crowd is silent.
They are doing all of this and without hybrids. Hmmmm interesting lol
Good news, especially for a retired GM employee who relies on them to do well. With that being said, I’m a little concerned for 2024 considering the large amount of COVID fixed rate mortgages coming due this year and into next year. Huge hikes in monthly payments are in the near future for hundreds of thousands if not millions of Americans and Canadians. A year to 18 months ago the GM dealership in Calgary had a huge lot full of trucks and everyone of them was pre sold. Now the lot is full of unsold trucks with 0% financing for 60 months. We’re definitely going to see a slowdown, how drastic, we’ll see.