General Motors (NYSE:GM) has delivered an optimistic outlook for its 2025 financial performance, projecting stronger-than-expected earnings driven by robust U.S. market demand and strategic operational adjustments in China. However, the company’s shares dropped more than 4% in pre-market today.

The automaker anticipates adjusted earnings per share for 2025 in the range of $11 to $12, exceeding the consensus estimate of $10.60. Net income attributable to shareholders is forecast between $11.2 billion and $12.5 billion, surpassing expectations of $10.63 billion. A significant contributor to this guidance is a projected $500 million benefit from year-over-year cost reductions in GM's Cruise autonomous driving division.

GM has also set capital spending for 2025 at $10 billion to $11 billion as it continues its dual focus on internal-combustion engine vehicles and an expanding portfolio of electric cars. CEO Mary Barra emphasized that this diversified lineup positions the company to navigate uncertainties surrounding trade policies, tax changes, and environmental regulations.

In 2024, GM capitalized on resilient consumer demand for its trucks and SUVs despite headwinds from elevated interest rates. The company posted adjusted earnings before interest and taxes of $14.9 billion, aligning with the upper end of its revised forecast of $14 billion to $15 billion. Annual revenue climbed 9.1% year-over-year to $187.4 billion, driven by strong U.S. sales and a strategy to maintain pricing discipline while minimizing inventory-related pressures.

For the fourth quarter of 2024, GM reported adjusted earnings per share of $1.92, beating analyst expectations of $1.83. Quarterly revenue reached $47.7 billion, also exceeding forecasts.