General Motors on Tuesday raised its full-year financial forecast for 2025 after reporting third-quarter results that surpassed Wall Street’s expectations for both revenue and profit. The news sent the automaker’s shares soaring more than 9% in premarket trading.
For the third quarter, GM posted adjusted earnings of $2.80 per share on revenue of $48.59 billion. This exceeded average analyst estimates of $2.31 per share and $45.27 billion in revenue. The company’s adjusted earnings before interest and taxes (EBIT) came in at $3.38 billion, ahead of the $2.72 billion expected. However, quarterly revenue was down slightly, less than 1%, from the same period last year.
Buoyed by the strong performance, GM updated its 2025 outlook, signaling confidence heading into the final quarter. The company now anticipates adjusted EBIT between $12 billion and $13 billion, up from a previous range of $10 billion to $12.5 billion. The forecast for adjusted earnings per share was raised to between $9.75 and $10.50, while adjusted automotive free cash flow is now projected to be between $10 billion and $11 billion.
“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,” CEO Mary Barra stated in a letter to shareholders. “Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”
The automaker also reduced its estimated full-year impact from tariffs to a range of $3.5 billion to $4.5 billion, down from $4 billion to $5 billion.
GM’s adjusted results did not include $1.6 billion in special charges related to a strategic pullback from its all-electric vehicle plans. These charges caused the company’s net income attributable to stockholders to fall 57% to $1.3 billion, compared to approximately $3.1 billion in the third quarter of 2024. Consequently, its net income margin dropped to 2.7% from 6.3% a year earlier.
CFO Paul Jacobson acknowledged challenges in the EV market, telling CNBC that only about 40% of the company’s electric models are profitable on a contribution-margin basis. He indicated that EV profitability will likely take longer than previously anticipated due to a slowdown in consumer adoption.
“We continue to believe that there is a strong future for electric vehicles,” Jacobson said. “But we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles.”
As of Monday’s close, shares of General Motors were up approximately 9% for the year.
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