Despite industry challenges, GM anticipates 2025 earnings to mirror this year's performance.

• According to CFO Paul Jacobson, General Motors anticipates its 2025 adjusted earnings to be within a "similar range" to the company's current year's results.
• The targeted adjusted earnings before interest and taxes for the Detroit automaker this year is between $13 billion and $15 billion, which translates to $9.50 to $10.50 per share.

CFO Paul Jacobson stated during the company's investor day that expects its 2025 adjusted earnings to be within a "similar range" to its results this year.

The Detroit automaker's projected earnings before interest and taxes this year are between $13 billion and $15 billion, or $9.50 and $10.50 per share, which is higher than the previous guidance of $12.5 billion to $14.5 billion, or $9 and $10 per share, given earlier this year.

If the auto industry manages to meet its 2024 targets and maintain similar earnings in the following year, it will be a remarkable achievement. However, experts predict that 2025 will be a much more challenging year for automakers due to slowing sales and consumer spending.

Jacobson refused to reveal specific financial goals until the company releases its 2025 financial outlook in early next year.

Electric vehicles and traditional gas-powered vehicles are expected to contribute to the earnings of automakers, which are predicted to be down for most companies.

According to Jacobson, under current assumptions, GM's eight upcoming vehicles are expected to have an average EBIT margin of about nine points higher than their previous comparable models.

Jacobson stated that the organization anticipates seeing benefits increase in the near future as they adopt more efficient methods for designing, manufacturing, and marketing their vehicles.

GM's capital spending is expected to be consistent in 2025 with this year, according to the company's 2024 financial guidance, which anticipates a capital spending range of between $10.5 billion and $11.5 billion.

The savings from increased volume and reduced costs, including raw materials and battery production, are the tailwinds for the EV industry.

Jacobson stated that GM's EV variable profit has decreased by more than 30 points year-over-year through the third quarter.

Mary Barra, CEO of General Motors, announced on Tuesday that the company is on track to produce and sell approximately 200,000 electric vehicles (EVs) for North America this year, achieving profitability on a production or contribution-margin basis by the end of the year. This guidance is lower than the previous target of 250,000 to 300,000 EVs, which was reduced multiple times.

The automaker's earnings next year are expected to be boosted by reductions to fixed costs, which have decreased by $2 billion over the past two years after accounting for depreciation and amortization, as well as stable demand and incentive spending.

The automaker gave few significant updates at its investor day, aside from its financial targets for next year.

Despite recent downgrades and price target adjustments by Wall Street analysts, GM's stock remained essentially unchanged at $46.01 on Tuesday, with the stock still up about 28% this year.