Detroit automaker General Motors (GM) has reported strong first-quarter financial results but warned of significant future impacts from automotive tariffs.
The company has announced earnings per share of $2.78 U.S., which beat the $2.74 U.S. that was expected on Wall Street.
Revenue in the quarter totaled $44.02 billion U.S., which came out ahead of $43.05 billion U.S. that was anticipated among analysts.
While the Q1 results were better-than-expected, GM said that it is “reassessing” its 2025 financial guidance and suspended any additional stock buybacks this year.
Management said they are preparing for expected cost increases and grappling with industry uncertainty regarding U.S. President Donald Trump’s tariffs imposed on the automotive sector.
General Motors’ 2025 guidance, which was issued in January, did not take tariffs into account.
That full-year outlook had called for net income of $11.20 billion U.S. to $12.50 billion U.S., or $11 U.S. to $12 U.S. in EPS.
While management declined to formally withdraw or suspend its guidance, they said it is now “unreliable” until the company has additional clarity on the economic environment.
“We believe the future impacts of tariffs could be significant, so we are reassessing our guidance and look forward to sharing more when we have greater clarity,” said General Motors’ Chief Financial Officer (CFO) Paul Jacobson on the company’s earnings call.
There are reports that the Trump administration will soften its automotive tariffs, preventing duties on foreign-made cars from stacking on top of other tariffs such as steel and aluminum.
For its part, General Motors said that it might be able to offset between 30% and 50% of the North American tariffs but is still assessing the situation and awaiting clarity.
The stock of General Motors has declined 8% this year to trade at $47.24 U.S. per share.