General Motors (GM) reported better-than-expected earnings for the first quarter of 2025 but has decided to pull its full-year guidance, citing ongoing uncertainty around the impact of President Trump’s auto tariffs. The automaker’s decision comes amid reports that the White House may offer tariff relief, which could impact GM’s financial outlook.
Earnings and Revenue Overview
GM posted Q1 revenue of $44.02 billion, surpassing the $43.03 billion expected by analysts and representing a 2.3% increase compared to the same period last year. The company also reported adjusted earnings per share (EPS) of $2.78, slightly beating the expected $2.72. However, operating income came in at $3.35 billion, slightly missing the estimated $3.45 billion, and adjusted EBIT (earnings before interest and taxes) dropped 9.8% year-over-year to $3.49 billion.
The automaker’s adjusted EBIT margin fell to 7.9%, down from 9.0% last year, reflecting challenges such as a changing product mix, higher costs, and foreign exchange headwinds.
Tariff Relief and Guidance Withdrawal
GM’s Chief Financial Officer, Paul Jacobson, stated that the company could no longer rely on its previous 2025 guidance due to uncertainties around tariff exposure. This decision follows reports that the Trump administration is set to offer tariff relief, potentially preventing tariffs on foreign-made cars from stacking with other duties like those on steel and aluminum. The Wall Street Journal reported that the relief would be retroactive, allowing automakers to be reimbursed for tariffs already paid.
As part of this, GM also announced a pause in its share buyback program, although the company will complete its ongoing $2 billion accelerated share repurchase (ASR) plan in the second quarter. GM’s executives indicated that they would wait for more clarity on tariff-related developments before offering forward guidance.
Strong Sales Performance
Despite the tariff concerns, GM had a strong start to 2025 in terms of sales. The company reported a 17% increase in Q1 U.S. sales, totaling 693,363 units. GM saw particularly strong sales in its truck and electric vehicle (EV) segments across its four brands: Chevrolet, Cadillac, Buick, and GMC. The Chevrolet Silverado and GMC Sierra full-size pickups were the best-sellers, with more than 200,000 units sold. Additionally, models like the Chevrolet Tahoe, Suburban, and GMC Yukon saw sales grow by 31% in Q1.
Future Outlook
Given the ongoing uncertainty surrounding tariffs and potential policy changes, GM refrained from commenting on future price changes or making projections for the rest of the year. The automaker’s decision to delay its earnings conference call to Thursday reflects its need for further clarity on the tariff situation before making any additional financial projections.
GM’s shares saw a slight dip of 2% in pre-market trading, reflecting the uncertainty around the company’s tariff exposure and future outlook.
