General Motors reported strong first-quarter results, surpassing Wall Street expectations, but has paused future stock buybacks and is reassessing its 2025 financial guidance due to growing concerns about the impact of ongoing auto tariffs. The company posted adjusted earnings per share of $2.78, slightly above analyst expectations of $2.74, with revenue reaching $44.02 billion compared to the projected $43.05 billion.
The automaker’s original 2025 outlook, issued in January before tariff developments, included net income between $11.2 billion and $12.5 billion and adjusted automotive free cash flow of $11 billion to $13 billion. However, GM’s Chief Financial Officer Paul Jacobson stated that the forecast no longer reflects current conditions and cannot be considered reliable until there is more clarity around economic and regulatory changes.
Although GM has not formally withdrawn the guidance, the company said it will update the market when additional information becomes available. Jacobson declined to provide specific figures on the financial impact of the 25% tariffs on imported vehicles that took effect April 3, saying more details would be disclosed in the upcoming investor call.
The administration is reportedly considering easing the burden of the tariffs by adjusting how duties are calculated and reimbursed. Changes under discussion include reimbursing automakers for tariffs on imported auto parts up to 3.75% of the value of U.S.-made cars for one year, then gradually phasing that out.
Jacobson mentioned that GM still believes it may be able to offset between 30% and 50% of the new tariffs but confirmed that full financial implications are still being evaluated. Despite the uncertainty, the company has already made certain strategic decisions, such as boosting pickup truck production in Indiana, canceling downtime in Missouri, and suspending electric van output in Canada.
The first-quarter financials included net income of $2.78 billion and adjusted EBIT of $3.49 billion, compared to $2.98 billion in net income and $3.87 billion in EBIT from the same period last year. Cost increases due to labor, warranties, and depreciation, along with foreign exchange impacts, especially the Mexican peso, were noted as challenges.
GM has concluded a $2 billion accelerated stock repurchase but will halt any future buybacks until further notice. The $6 billion buyback program announced earlier remains under review amid broader uncertainties. Capital expenditure plans remain intact for now, but the company continues to monitor the situation closely.
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