GM shares have jumped 8% in premarket trade following the company’s third quarter earnings release.
For the third quarter, GM reported a net revenue of $44.26 billion, slightly below the estimated $45.18 billion.
Despite the Detroit company’s struggles with auto tariffs, GM now expects full-year EBIT to be between $12.0 billion and $13.0 billion (up from $10 billion to $12.5 billion), with adjusted automotive free cash flow ranging from $10.0 billion to $11.0 billion (earlier $7.5 billion to $10 billion). It also projects adjusted earnings per share (EPS) of $9.75 to $10.50 diluted (compared to $8.25 to $10.00 previously).
In a letter to shareholders, GM CEO Mary Barra stated: “GM delivered another very good quarter of earnings and free cash flow. In the U.S., we achieved our highest third-quarter market share since 2017 with strong margins, and our restructured China business was profitable once again. Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.
Barra wrote, “I also want to thank the President and his team for the important tariff updates they made on Friday. The MSRP offset program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint.”
GM said its full-year tariff exposure is now projected to be approximately $3.5 billion to $4.5 billion.
“Looking ahead, our top priority is to restore North America to our historical 8–10% EBIT-adjusted margins. We are focused on driving EV profitability, maintaining production and pricing discipline, managing fixed costs, and further reducing tariff exposure. Cross-functional teams are also working to address warranty expenses by tackling root causes internally, with suppliers, and at dealerships,” Barra concluded.
Read CEO North America Magazine’s exclusive interview with Mary Barra
By CEO NA Editorial Staff
