General Motors reported its first-quarter earnings on Tuesday, surpassing Wall Street’s expectations. The company’s adjusted earnings per share landed at $2.78 versus the expected $2.74. Revenue landed at $44.02 billion versus Wall Street’s estimate of $43.05 billion. Net income was $2.78 billion, and adjusted earnings before interest and taxes (EBIT) landed at $3.49 billion. Compared to the previous year, revenue was $43.01 billion, net income was $2.98 billion, and adjusted EBIT was $3.87 billion. The results reveal a slight revenue gain but lower profit margins year-over-year.
Despite General Motors suspending additional stock buybacks due to the uncertainty caused by the new 25% auto tariffs, CFO Paul Jacobson confirmed the company still expects to complete the accelerated program in Q2 as part of its broader $6 billion repurchase plan announced in February.
General Motors’ original 2025 financial guidance, produced in January, did not consider the impact of potential tariffs. The original report included a net income attributable to stockholders of $11.2 billion to $12.5 billion, or $11 to $12 earnings per share; adjusted EBIT of $13.7 billion to $15.7 billion, or $11 to $12 adjusted EPS; and adjusted automotive free cash flow between $11 billion and $13 billion.
“We believe the future impacts on tariffs could be significant, so we are reassessing our guidance,” GM CFO Paul Jacobson stated during a media call. “The prior guidance can’t be relied upon, and we’ll come back to the market with clarity as soon as we have it.”
Jacobson confirmed that the company maintains that it can offset between 30% and 50% of the tariffs. It has adjusted its North American manufacturing, including boosting pickup truck production at its Indiana plant, canceling scheduled downtime at its Missouri plant, and halting production at a Canadian plant that produced EV delivery vans. However, until there is additional clarity, the company will not make any significant shifts in its manufacturing plans.
It remains unclear how much the 25% tariff on imported vehicles has cost General Motors since its enforcement on April 3. However, the Wall Street analysts have begun downgrading automotive stocks, including GM, due to the policy uncertainty.
President Trump is expected to announce modifications to his tariff policy. The policy shift will soften the impact of the levies, providing a bit of relief to automakers. Automakers will not have to pay both the 25% auto tariffs and existing tariffs like those on steel or aluminum for the same vehicle. In addition, automakers using foreign parts in U.S.-made vehicles can receive reimbursements up to 3.75% of the car’s value during the first year and 2.5% in the second year. The policy would be retroactive, allowing automakers to receive reimbursements for tariffs they have paid.
