General Motors surges nearly 15% on earnings beat, raises full-year guidance

Core Insights - General Motors reported strong third-quarter results for 2025, with revenue slightly decreasing year-over-year, beating consensus estimates for both revenue and earnings per share (EPS) [1] - The company raised its full-year guidance, reflecting confidence in its performance trajectory [1] Financial Performance - Third-quarter revenue was $48.59 billion, a slight decrease from $48.76 billion in the previous year, and adjusted EPS reached $2.80, surpassing the anticipated $2.31 despite a 5% year-over-year decline [1][2] - Net income for the quarter was $1.32 billion, significantly down from $3 billion the previous year, impacted by changes in electric vehicle strategy and production adjustments [2] - Adjusted earnings before interest and taxes (EBIT) totaled $3.38 billion, down from $4.12 billion a year prior [3] Market Position - GM's market share in the U.S. reached 8.3%, the highest since 2017, with quarterly U.S. sales increasing by 8% to 710,347 units [3] Guidance Updates - The company raised its full-year adjusted EBIT guidance to a range of $12 billion to $13 billion, up from $10 billion to $12.5 billion [4] - Adjusted automotive free cash flow is now expected to be between $10 billion and $11 billion, with adjusted diluted EPS projected between $9.75 and $10.50 [4] Tariff Mitigation Strategies - GM expects annual tariff costs for 2025 to be between $3.5 billion and $4.5 billion, a reduction from earlier forecasts of up to $5 billion [5] - The company expressed gratitude for recent tariff relief efforts aimed at domestic manufacturers, which are expected to enhance competitiveness by lowering domestic manufacturing costs [5]