General Motors reported robust third-quarter results for 2025 as Wall Road cheered income that decreased solely barely yr over ear. The corporate beat consensus estimates for each income and earnings per share (EPS), and its inventory soared almost 15% in same-day buying and selling as merchants appeared to breathe a sigh of reduction. “Within the U.S., we achieved our highest third-quarter market share since 2017 with sturdy margins, and our restructured China enterprise was worthwhile as soon as once more,” CEO Mary Barra stated in a letter to shareholders. “Based mostly on our efficiency, we’re elevating our full-year steerage, underscoring our confidence within the firm’s trajectory.”
GM posted third-quarter income of $48.59 billion, beating out analyst expectations and marking solely a slight lower from the prior yr’s $48.76 billion. Adjusted earnings per share reached $2.80, topping the anticipated $2.31 even because it mirrored a 5% year-over-year decline.
Even because the automaker surpassed Wall Road’s estimates on key metrics, web earnings noticed a pointy year-over-year decline owing to important shifts in electrical automobile technique, ongoing tariff pressures, and focused manufacturing changes. The automaker’s web earnings for the quarter got here in at $1.32 billion, lower than half of the earlier yr’s $3 billion, immediately impacted by electrical automobile manufacturing modifications, impairment costs associated to underutilized belongings, and canceled provider agreements. Still, it raised the top end of its full-year net income guidance to $9.5 billion.
Adjusted earnings before interest and taxes (Ebit) totaled $3.38 billion, also down significantly from $4.12 billion a year prior. GM’s market share hit 8.3%—the highest since 2017—as quarterly U.S. sales shot up 8% to 710,347 units.
Guidance raised
Despite these challenges, GM raised its full-year adjusted Ebit guidance to the $12 billion to $13 billion range, up from its previous guidance of $10 billion to $12.5 billion. The company now anticipates that adjusted automotive free cash flow will reach $10 billion to $11 billion, and adjusted diluted EPS is projected to be between $9.75 and $10.50, exceeding spring estimates.
GM attributes these upgrades partly to tariff mitigation strategies; the manufacturer now expects annual tariff costs for 2025 to be $3.5 billion to $4.5 billion, compared with spring forecasts as high as $5 billion. Barra expressed gratitude to President Donald Trump for recent tariff relief efforts specifically aimed at domestic manufacturers, together with new offset applications for automobiles made within the U.S., estimated to bolster competitiveness by lowering home manufacturing prices. “I additionally need to thank the president and his staff for the vital tariff updates they made on Friday. The MSRP offset program will assist make U.S.-produced automobiles extra aggressive over the following 5 years, and GM may be very properly positioned as we make investments to extend our already important home sourcing and manufacturing footprint.”
Core energy stemmed from sturdy gross sales of gas-powered automobiles, together with pickups such because the Chevrolet Silverado and the GMC Yukon SUV. On the similar time, incentives remained regular at simply 4% of the typical transaction value, properly beneath the trade common. GM’s EV division delivered a document 66,501 items due to federal tax credit, though the corporate expects gross sales to reasonable within the wake of tax credit score expiration.
For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the data earlier than publishing.
