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GM beats on Q3 results, tightens profit outlook, and unveils new $20 billion buyback
Yahoo Finance • • general
Key Points:
- General Motors (GM) reported Q3 revenue of $50 billion, beating estimates, with adjusted EPS of $3.70 surpassing the $3.57 forecast and adjusted EBIT rising nearly 22% to $4.1 billion.
- GM narrowed its full-year adjusted EBIT guidance to $14.5-$15.5 billion and adjusted EPS to $12.75-$13.75, maintaining midpoints but trimming both upside and downside expectations.
- The company raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion and announced a new $20 billion multiyear share repurchase program with no expiration date, alongside a quarterly dividend of $0.18 per share.
- GM faces increased cost pressures, expecting $2 billion in commodity inflation and reduced regulatory benefits, while tariff costs are tracking at the low end of the range.
- US vehicle sales declined 5.5% in Q3, driven by a 62% drop in EV sales to 25,500 units, with significant decreases in key EV models like the Chevrolet Equinox EV and GMC Hummer EV, offsetting gains in pickups and small SUVs.
