Renato Neves, CFA
This article first appeared on GuruFocus.
General Motors (NYSE:GM) reported third-quarter adjusted earnings of $3.70 per share, just above the analysts’ consensus of $3.69, on revenue of $50.0 billion, ahead of the $48.78 billion estimate. On a GAAP basis, diluted EPS was $3.73, up from $1.35 a year earlier. GM shares fell 6.78% in premarket.
EBIT-adjusted rose 21.6% to $4.1 billion, lifting the margin to 8.2% from 6.9%. North America accounted for most of the profit, with EBIT-adjusted up 43.4% to $3.6 billion at an 8.7% margin. International EBIT-adjusted fell to $28 million from $226 million, and GM Financial’s EBT-adjusted slipped to $668 million from $804 million. Adjusted automotive free cash flow rose to $5.9 billion from $4.2 billion.
GM narrowed its full-year EBIT-adjusted guidance to $14.5 billion to $15.5 billion from $14.0 billion to $16.0 billion, and its adjusted EPS range to $12.75 to $13.75 from $12.00 to $14.00. It raised its adjusted automotive free cash flow outlook to $11.5 billion to $12.5 billion from $9.5 billion to $11.5 billion.
GM also completed its $6 billion buyback and approved a new $20 billion multi-year authorization. Shares outstanding fell to 849 million at the end of September from 904 million at the end of 2025. At about $77 a share, the new authorization equals roughly 30% of GM’s market value.
