A General Motors Co. Chevrolet Silverado truck at a dealership in Upland, California, United States, Wednesday, October 15, 2025.
Kyle Grillot | Bloomberg | Getty Images
DETROIT — General engines On Tuesday, the company raised its 2025 financial forecast after beating Wall Street’s profit expectations for the third quarter, while lowering the expected impact of tariffs.
Shares of GM rose from a 2.4% decline to a rise of more than 9% in premarket trading Tuesday. The stock closed Monday at $58 per share.
Here’s the company’s third-quarter performance, compared to average estimates compiled by LSEG:
- Earnings per share: $2.80 adjusted vs. $2.31 expected
- Income: $48.59 billion versus $45.27 billion expected
- Adjusted EBIT: $3.38 billion versus $2.72 billion expected
GM’s third-quarter revenue of $48.59 billion was down less than 1% from $48.76 billion in the same period last year.
GM’s new outlook signals strength for the automaker heading into the fourth quarter and exceeds Wall Street analysts’ current expectations for the final three months of the year.
Updated guidance includes adjusted earnings before interest and taxes of $12 billion to $13 billion, or adjusted EPS of $9.75 billion to $10.50, up $10 billion to $12.5 billion, or adjusted EPS of $8.25 billion to $10 billion, and automotive adjusted free cash flow of $10 billion to $11 billion. dollars, up from $7.5 billion to $10 billion.
GM Stocks in 2025
The automaker’s new EPS target suggests fourth-quarter adjusted EPS between $1.64 and $2.39, with a midpoint around $2.02, which is above the current consensus of $1.94.
“Thanks to the collective efforts of our team and our compelling vehicle portfolio, GM delivered another very strong quarter of earnings and free cash flow,” GM CEO Mary Barra said in a letter to shareholders Tuesday. “Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”
GM too reduced the expected impact of tariffs this year to between $3.5 billion and $4.5 billion, down from $4 billion to $5 billion. The automaker expects to offset about 35% of that impact.
Barra on Tuesday thanked President Donald Trump for “significant tariff updates” Friday, which included imposing taxes on imported medium- and heavy-duty trucks and parts, as well as extending a tariff offset worth 3.75 percent of the value of U.S.-made vehicles.
GM’s adjusted results do not include $1.6 billion in special charges reported by the automaker last week due to the decline in fully electric vehicles, which more than halved its net income attributable to shareholders compared to the third quarter of 2024.
The company’s net income attributable to shareholders was $1.3 billion in the just-reported period, down 57% from $3.1 billion about a year earlier. Its net margin also fell to 2.7%, from 6.3% a year earlier.
GM Chief Financial Officer Paul Jacobson said Tuesday that only about 40% of the company’s electric vehicles are profitable based on production or contribution margin. He said the company expects EV profitability to take longer than expected amid an expected slowdown in adoption.
“We continue to believe that there is a strong future for electric vehicles and that we have a great portfolio to be competitive, but we need to make some structural changes to ensure that we reduce the cost of producing these vehicles,” he told CNBC’s Phil LeBeau on “Squawk Box.”
GM shares are up about 9% in 2025, as of Monday’s close.
This is developing news. Please check back for additional updates.
