GM(US:GM)2025-10-21 20:07Financial Performance - For the year ending December 31, 2025, the company expects net income attributable to stockholders to be between $7.7 billion and $8.3 billion, with EBIT-adjusted between $12.0 billion and $13.0 billion[147]. - Total net sales and revenue for GM in the three months ended September 30, 2025, were $48.591 billion, a slight decrease of 0.3% from $48.757 billion in the same period of 2024[166]. - GM's total automotive revenue for the nine months ended September 30, 2025, was $126.985 billion, a decrease of 0.8% from $128.007 billion in the same period of 2024[168]. - Total net sales and revenue for GM International increased to $3.645 billion in Q3 2025, a 3.6% increase from $3.517 billion in Q3 2024[187]. - Total net sales and revenue for Automotive China JVs increased to $6.121 billion in Q3 2025, compared to $4.480 billion in Q3 2024[195]. - Total net sales and revenue for GM Financial increased by $305 million to $4.337 billion in Q3 2025, a 7.6% increase from $4.031 billion in Q3 2024[196]. - In the nine months ended September 30, 2025, total revenue for GM Financial increased by $995 million to $12.756 billion, an 8.5% increase from $11.761 billion in the same period of 2024[196]. Vehicle Sales and Market Share - In the nine months ended September 30, 2025, U.S. industry sales increased by 4.1% to 12.5 million units compared to the same period in 2024[150]. - The company's total vehicle sales in the U.S. were 2.2 million units for a market share of 17.2%, reflecting an increase of 1.0 percentage points year-over-year[151]. - In the nine months ended September 30, 2025, industry sales in China rose by 6.5% to 19.3 million units, with the company's total vehicle sales at 1.4 million units and a market share of 7.0%[155]. - Total vehicle sales outside of China were 0.7 million units, representing a decrease of 0.3 percentage points in market share compared to the same period in 2024[156]. - Total vehicle sales in North America for the three months ended September 30, 2025, were 837,000 units, up from 790,000 units in the same period of 2024, resulting in a market share increase from 15.8% to 16.1%[160]. - In China, GM sold 469,000 vehicles in the three months ended September 30, 2025, compared to 426,000 in the same period of 2024, with market share rising from 6.5% to 6.8%[160]. - The total vehicle sales in GM markets for the nine months ended September 30, 2025, were 4,549,000 units, up from 4,253,000 units in the same period of 2024, maintaining a market share of 8.3%[160]. Costs and Expenses - Total automotive and other cost of sales for the three months ended September 30, 2025, increased by $2.929 billion, or 7.5%, to $41.936 billion compared to the same period in 2024[169]. - Total automotive and other cost of sales for the nine months ended September 30, 2025, increased by $4.799 billion, or 4.3%, to $116.416 billion compared to the same period in 2024[172]. - Increased material and freight costs for the nine months ended September 30, 2025, amounted to $2.7 billion, including $2.4 billion due to tariffs[172]. - For the three months ended September 30, 2025, EBIT-adjusted decreased primarily due to increased material and freight costs of $0.9 billion, including $1.1 billion due to tariffs[185]. - In the nine months ended September 30, 2025, EBIT-adjusted decreased primarily due to increased material and freight costs of $2.5 billion, including $2.4 billion due to tariffs[186]. Earnings and Returns - Diluted earnings per common share for the three months ended September 30, 2025, was $1.35, compared to $2.68 for the same period in 2024, reflecting a decrease[256]. - Adjusted diluted earnings per share (EPS-diluted-adjusted) for the nine months ended September 30, 2025, was $8.09, down from $8.63 in 2024[256]. - Return on equity (ROE) for the four quarters ended September 30, 2025, was 4.7%, significantly lower than 15.9% for the same period in 2024[259]. - Return on invested capital (ROIC-adjusted) for the four quarters ended September 30, 2025, was 18.5%, down from 19.4% in 2024[262]. - Net income attributable to stockholders for the four quarters ended September 30, 2025, was $3.0 billion, compared to $11.1 billion in 2024[259]. - EBIT-adjusted for the four quarters ended September 30, 2025, was $12.4 billion, compared to $14.2 billion in 2024[262]. Liquidity and Capital Management - GM maintains sufficient liquidity through cash, cash equivalents, and available borrowing capacity to meet short- and long-term requirements[201]. - Total automotive available liquidity as of September 30, 2025, was $35.7 billion, slightly up from $35.5 billion at December 31, 2024[219]. - GM Financial's available liquidity increased to $36.2 billion as of September 30, 2025, up from $29.3 billion at December 31, 2024, primarily due to increased borrowing capacity and $2.0 billion in proceeds from the sale of finance receivables[233]. - The company targets liquidity levels to support at least six months of expected net cash outflows, and as of September 30, 2025, available liquidity exceeded these targets[233]. - The company has $2.8 billion in capacity remaining under its share repurchase program as of September 30, 2025[206]. - The company plans to invest approximately $10.0 billion to $11.0 billion in battery cell manufacturing joint ventures by 2025[202]. Tax and Regulatory Environment - Income tax expense for the three months ended September 30, 2025, decreased by $583 million, or 82.1%, to $127 million compared to the same period in 2024[178]. - Effective tax rate for the three months ended September 30, 2025, was 8.9%, with an expected adjusted effective tax rate between 20% and 21% for the year ending December 31, 2025[179]. - The effective tax rate for the three months ended September 30, 2025, was 8.9%, compared to 19.1% for the same period in 2024[258]. - The company anticipates a slowdown in EV adoption due to recent U.S. Government policy changes, which may lead to additional contract cancellation fees[203]. Strategic Initiatives - The company recorded charges of $1.6 billion in GMNA due to a strategic realignment of EV capacity and manufacturing footprint to align with expected consumer demand[142]. - The company aims to return GMNA to its historical EBIT-adjusted margins of 8.0-10.0% as quickly as possible[154]. - The company is focused on improving EV profitability while maintaining cost discipline amid evolving tariff and policy landscapes[154]. - The average target return on invested capital (ROIC-adjusted) is set at 20% or greater as part of the capital allocation program[202]. Shareholder Returns - In the nine months ended September 30, 2025, the company repurchased approximately 27 million shares for $1.5 billion under its existing share repurchase program[206]. - The quarterly common stock dividend was increased by $0.03 to $0.15 per share starting April 2025, with $0.4 billion paid in dividends in the nine months ended September 30, 2025[207]. Credit and Risk Management - All four credit rating agencies currently rate the company's corporate credit at investment grade, with no changes since December 31, 2024[231]. - The company continues to monitor and evaluate opportunities to optimize its liquidity position and the mix of its debt between secured and unsecured debt[232]. - The provision for loan losses increased to $0.9 billion for the nine months ended September 30, 2025, compared to $0.7 billion in the prior year[237]. - There have been no changes in internal control over financial reporting that materially affected the company during the three months ended September 30, 2025[271]. - The company has not reported any significant changes in market risk exposure since December 31, 2024[268].