GM Beats Q1 Expectations but Suspends Stock Buybacks Amid Tariff Uncertainty

DETROIT — General Motors (GM) reported better-than-expected first-quarter results but is revising its financial outlook for 2025. The company suspended any further stock buybacks as it faces rising costs and uncertainty within the automotive industry.

During a media call, GM Chief Financial Officer Paul Jacobson revealed that the automaker’s net income ranged from $11.2 billion to $12.5 billion, translating to $11 to $12 in earnings per share. Adjusted earnings before interest and taxes were between $13.7 billion and $15.7 billion, while adjusted automotive free cash flow was projected between $11 billion and $13 billion.

Jacobson emphasized the potential impact of tariffs on the company’s operations, stating, “We believe the future impacts of tariffs could be significant, so we are reassessing our guidance and look forward to sharing more when we have greater clarity.” He mentioned that the previous guidance should not be relied upon until further economic and regulatory insights emerge.

Although GM has not formally withdrawn its guidance, Jacobson classified it as unreliable until they can gauge the situation more accurately. He declined to provide specific figures on how much the new 25% tariff on imported vehicles, effective April 3, has affected GM’s finances so far.

Recent reports indicated that the administration may ease some of the automotive tariffs, possibly allowing automakers to have tariffs on imported auto parts reimbursed. This includes reimbursement structures phased down over two years.

Jacobson remained cautious, saying GM still anticipates covering between 30% and 50% of North American tariffs as previously indicated, yet they are continuing to assess the situation. He expressed the need for clarity on tariffs before making significant adjustments to manufacturing plans.

For the first quarter, GM’s net income attributable to stockholders was about $2.78 billion, with adjusted earnings before interest and taxes at $3.49 billion. Comparatively, the company had $43.01 billion in revenue and $2.98 billion in net income during the same period last year. Jacobson acknowledged the decline in profit margins but described the results as “very strong,” citing fundamental strengths in the business.

He noted a $300 million negative impact from currency fluctuations, specifically the Mexican peso, as well as $400 million due to increased labor, warranty, depreciation, and amortization costs. Regarding stock buybacks, Jacobson confirmed that the concluding $2 billion accelerated stock buyback program is expected to finish in the second quarter, but future purchases are currently on hold. Earlier this year, GM announced plans for a $6 billion buyback program amid declining industry sales.