General Motors Co. announced its second-quarter 2024 revenue reached $48.0 billion, a record financial performance that led the company to increase its full-year earnings guidance for the second consecutive quarter.
In the first six months of 2024, GM reported just under $91 billion in revenue, also a record and a 7.4% increase from the same period in 2023.
In a letter to shareholders, GM CEO and Chairman Mary Barra attributed the strong second quarter and first half results to four key drivers: high pickup and SUV sales, a scaling EV portfolio, stable prices with lower incentives than the industry average, and new investments focusing on margins and capital efficiency.
While GM now projects net income attributable to stockholders to be between $10.0 billion and $11.4 billion, slightly down from the previous range of $10.1 billion to $11.5 billion, it is projecting EBIT-adjusted to be in the range of $13.0 billion to $15.0 billion, up from the earlier forecast of $12.5 billion to $14.5 billion.
Other key financial metrics have also been revised upwards. GM's automotive operating cash flow is now anticipated to be between $19.2 billion and $22.2 billion, an increase from the previous range of $18.3 billion to $21.3 billion. Additionally, the adjusted automotive free cash flow forecast has been raised to $9.5 billion to $11.5 billion, compared to the prior range of $8.5 billion to $10.5 billion.
This financial guidance includes anticipated capital spending of $10.5 billion to $11.5 billion, which encompasses investments in GM's battery cell manufacturing joint ventures.
GM Financial Company, Inc., which provides auto loan financing, also announced second-quarter results, demonstrating a strong performance in net income and growth in lease originations and commercial finance, despite challenges in retail loan originations and higher delinquency rates.
GM Financial reported a net income of $610 million for the second quarter of 2024, an increase from $536 million in the first quarter and $571 million in the second quarter of 2023.
Retail loan originations totaled $8.6 billion for the second quarter, showing an increase from $8.3 billion in the first quarter but a decline from $9.1 billion in the same period last year. For the first half of 2024, retail loan originations amounted to $17.0 billion, down from $18.2 billion in the first half of 2023.
Operating lease originations saw a notable rise to $5.0 billion for the second quarter of 2024, compared to $4.3 billion in the first quarter and $4.6 billion in the second quarter of the previous year. For the six-month period ending June 30, operating lease originations reached $9.3 billion, up from $8.5 billion in the corresponding period of 2023. The net leased vehicles value was $30.3 billion at the end of the second quarter, slightly up from $30.1 billion in the first quarter but down from $31.6 billion in the same quarter of 2023.
The outstanding balance of commercial finance receivables increased to $17.1 billion at the end of the second quarter, up from $14.9 billion in the first quarter and $11.5 billion in the second quarter of 2023.
Delinquencies in retail finance receivables saw a slight uptick, with 2.1% of the portfolio 31-60 days delinquent at the end of June 2024, compared to 1.8% in June 2023. Accounts more than 60 days delinquent were 0.7% of the portfolio at the end of June 2024, compared to 0.6% at the same time last year.
