General Motors delivered first quarter results that surpassed Wall Street’s revenue and adjusted earnings expectations, but the market responded negatively due to concerns about margin pressure and evolving U.S. trade policy. Management attributed the modest sales growth to strong U.S. demand, especially for redesigned SUVs and pickups, while highlighting that cost pressures and scheduled plant downtime dampened profitability. CEO Mary Barra acknowledged, “We are scrutinizing our discretionary spending everywhere and taking steps to ensure that we stay aligned with strong consumer demand for our ICE vehicles and the evolving regulatory environment.”
Is now the time to buy GM? Find out in our full research report (it’s free).
General Motors (GM) Q1 CY2025 Highlights:
- Revenue: $44.02 billion vs analyst estimates of $42.85 billion (2.3% year-on-year growth, 2.7% beat)
- Adjusted EPS: $2.78 vs analyst estimates of $2.66 (4.3% beat)
- Adjusted EBITDA: $5.21 billion vs analyst estimates of $6.07 billion (11.8% margin, 14.2% miss)
- Operating Margin: 7.6%, down from 8.7% in the same quarter last year
- Sales Volumes rose 1.8% year on year (3.7% in the same quarter last year)
- Market Capitalization: $46.34 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions General Motors’s Q1 Earnings Call
- Itay Michaeli (TD Cowen) asked about the timeline for mitigating tariff impacts and whether similar relief could apply to imported vehicles. CFO Paul Jacobson replied that mitigation would take time, focusing on pricing, cost reductions, and supply chain adjustments, with ongoing evaluation of further policy changes.
- Joe Spak (UBS) questioned the composition of the 30% self-help offset and whether pricing assumptions were embedded. Jacobson clarified that pricing is assumed to remain flat, and offsets will come from internal cost actions, supply chain localization, and productivity gains.
- Dan Levy (Barclays) inquired about U.S. sales assumptions and the impact of shifting production for affordable vehicles currently assembled abroad. Jacobson noted that the company is prepared to adjust its manufacturing footprint as needed, leveraging existing U.S. capacity.
- Daniel Roska (Bernstein) asked about supplier pricing power under new tariffs. CEO Mary Barra emphasized GM’s collaborative approach with suppliers to prevent opportunistic price increases and ensure greater efficiency instead of margin expansion.
- Adam Jonas (Morgan Stanley) sought updates on Super Cruise adoption and the role of automation and AI in GM’s manufacturing strategy. Barra highlighted ongoing expansion of Super Cruise-equipped vehicles and the company’s investment in AI and robotics to drive efficiency and product quality.
Catalysts in Upcoming Quarters
Our analyst team is monitoring (1) the pace and effectiveness of GM’s supply chain localization and tariff mitigation strategies, (2) progress in aligning EV production with consumer demand and improving EV profitability, and (3) continued market share gains in the U.S. driven by new ICE and EV models. The ability to maintain pricing discipline amid cost pressures and evolving trade dynamics will also be scrutinized.
General Motors currently trades at $48.24, up from $47.19 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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