General Motors raises full-year forecasts despite sluggish Q3 results

Core Insights - General Motors reported a significant decline in net income for Q3 2025, dropping by 57% to $1.32 billion from $3.05 billion in the previous year [1] - Revenue slightly decreased to $48.59 billion from $48.76 billion year-on-year [1] - Adjusted EPS for the quarter was $2.80, down from $2.96 in Q3 2024 [1] Financial Performance - Adjusted EBIT fell 18% to $3.37 billion from $4.11 billion a year earlier [2] - Net income margin shrank to 2.7% from 6.3% in the same quarter the previous year [2] - Automotive operating cash flow decreased by 22.8% to $6.07 billion from $7.86 billion recorded in the year-ago period [2] Future Guidance - GM revised its full-year guidance upwards, forecasting adjusted EBIT between $12 billion and $13 billion, and adjusted EPS of $9.75 to $10.50 [3] - This is an increase from previous estimates of $10 billion to $12.5 billion for adjusted EBIT, and $8.25 to $10 for adjusted EPS [3] - Anticipated adjusted automotive free cash flow is now projected at $10 billion to $11 billion, up from earlier projections of $7.5 billion to $10 billion [3] Market Performance - In North America, GM earned over $2.5 billion on an adjusted basis, although the adjusted profit margin decreased from 9.7% to 6.2% [4] - The company aims to return to 8% to 10% adjusted profit margins in North America by focusing on EV profitability, production and pricing discipline, managing fixed costs, and reducing tariff exposure [5] Electric Vehicle Strategy - The evolving regulatory framework and the end of federal consumer incentives have led to a reassessment of EV capacity and manufacturing footprint [6] - A special charge was recorded in Q3 due to this reassessment, with expectations of future charges [6] - The company aims to reduce EV losses in 2026 and beyond by addressing overcapacity [6]