GM raises guidance after beating Wall Street expectations, lowering tariff costs

DETROIT — General Motors raised its 2025 financial guidance Tuesday after beating Wall Street's top- and bottom-line earnings expectations for the third quarter, while lowering its expected impact from tariffs.

Here's how the company performed in the third quarter, compared with average estimates compiled by LSEG:

GM's new outlook signals strength for the automaker heading into the fourth quarter and beats Wall Street analysts' current expectations for the last three months of the year.

The updated guidance includes adjusted earnings before interest and taxes of between $12 billion and $13 billion, or $9.75 to $10.50 adjusted EPS, up from $10 billion to $12.5 billion, or $8.25 to $10 adjusted EPS, and adjusted automotive free cash flow of $10 billion to $11 billion, up from $7.5 billion to $10 billion.

The automaker's new EPS target suggests a fourth quarter adjusted EPS of between $1.64 and $2.39, with a midpoint around $2.02, which is above current consensus 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," GM CEO Mary Barra said Tuesday 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 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.

GM's adjusted results do not include $1.6 billion in special charges reported by the automaker last week due to its pullback in all-electric vehicles, which more than halved its net income attributable to stockholders compared with the third quarter of 2024.

The company's net income attributable to stockholders was $1.3 billion during the just-reported period, down 57% from roughly $3.1 billion year earlier. Its net income margin also plummeted to 2.7%, down from 6.3% a year earlier.

Shares of GM are up about 9% in 2025, as of Monday's close.

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