General Motors Raises 2025 Forecast After Strong Q3 Earnings

DETROIT — General Motors Co. raised its financial guidance for 2025 on Tuesday after surpassing Wall Street’s earnings expectations for the third quarter and lowering its expected impact from tariffs.

Shares of GM experienced volatility on Tuesday, swinging from a 2.4% decline to an increase of more than 9% in premarket trading. The stock closed Monday at $58 per share.

In the third quarter, GM reported revenues of $48.59 billion, a slight decrease from $48.76 billion during the same period last year. This updated outlook demonstrates the automaker’s strength as it approaches the fourth quarter.

The new guidance includes adjusted earnings before interest and taxes between $12 billion and $13 billion, with adjusted earnings per share (EPS) projected at $9.75 to $10.50. This marks an increase from previous estimations of $10 billion to $12.5 billion, or $8.25 to $10 adjusted EPS. Additionally, the adjusted automotive free cash flow is now expected to be between $10 billion and $11 billion, up from $7.5 billion to $10 billion.

GM’s updated EPS target for the fourth quarter suggests an adjusted EPS ranging from $1.64 to $2.39, with a midpoint expectation of around $2.02, surpassing the consensus estimate of $1.94.

“Thanks to the collective efforts of our team, and our compelling vehicle portfolio, GM delivered another very good quarter of earnings and free cash flow,” said GM CEO Mary Barra in a shareholder letter. “Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”

GM also adjusted the expected impact of tariffs for this year to between $3.5 billion and $4.5 billion, down from previous estimates of $4 billion to $5 billion. The automaker anticipates offsetting around 35% of that impact.

During the announcement, Barra expressed gratitude to President Donald Trump for recent actions that included imposing levies on imported medium- and heavy-duty trucks as well as extending a tariff offset of 3.75% of the value of American-made vehicles.

However, GM’s adjusted results did not include effects from its recent pullback in all-electric vehicles, which significantly reduced net income attributable to stockholders by 57% compared to the third quarter of 2024, totaling $1.3 billion. The company’s net income margin also fell to 2.7%, down from 6.3% a year earlier.

GM CFO Paul Jacobson indicated that only about 40% of the company’s electric vehicles were profitable on a contribution-margin basis. He noted that the company anticipates the path towards electric vehicle profitability will take longer than initially expected amid a slowdown in adoption.

“We continue to believe that there is a strong future for electric vehicles, and we’ve got a great portfolio to be competitive, but we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles,” Jacobson said during a segment on “Squawk Box.”

As of Monday’s close, shares of GM were up approximately 9% in 2025. This is developing news. Please check back for additional updates.