GM's Third Quarter Results Exceeded Expectations

General Motors Third Quarter Results

General Motors (GM) has announced its financial results for the third quarter of 2025. The company exceeded analyst expectations with both revenue and profit figures. The third-quarter revenue was reported at $48.6 billion, and the adjusted earnings per share was $2.80. These figures are significantly above analysts' estimates of $45.0 billion in revenue and $2.29 in earnings per share.

Future Forecasts and Revisions

GM raised its adjusted EBITDA forecast for 2025 from $10-12.5 billion to $12-13 billion. This indicates improvements in the company's financial management and positive developments in market conditions. At the same time, it also lowered its gross margin expectation from $4-5 billion to $3.5-4.5 billion.

Sector Evaluation

The company reported a decline in EBITDA year-on-year, but stated that the main reasons for this are tariff costs, warranty expenses, and a decrease in sales volume. Nevertheless, GM management expects that 2026 will be stronger than 2025. Advances in the electric vehicle sector, decreases in warranty costs, changes in regulatory rules, and potential improvements in fixed costs play a role in the company's positive forecasts.

Additional Information for Investors

GM stands out with a market value of $63.87 billion. In the dynamics of the sector, which is driven by consumer demand, GM's price-to-earnings ratio of 8.85 presents a low valuation compared to the industry average. This situation reflects investors' cautious approach to the transition to electric vehicles.