Q3 2025 Performance Overview

General Motors (NYSE: GM) reported a complex set of financial figures for the third quarter of 2025, demonstrating resilience in some areas but marked declines in core profitability metrics compared to the previous year. The company posted revenue of $48.6 billion for the quarter. While this figure was nearly flat, showing only a modest decrease of 0.3% from the $48.8 billion reported in the third quarter of 2024, the primary profitability indicators showed notable contraction. Net income attributable to stockholders fell by 56.6%, dropping from $3.1 billion in Q3 2024 to $1.3 billion in Q3 2025. Concurrently, EBIT-adjusted for the quarter decreased by 18.0%, settling at $3.4 billion, down from $4.1 billion year-over-year.

North American and International Segment Performance

A deeper look into GM’s segment performance reveals where the declines were most acute. GM North America (GMNA) saw its EBIT-adjusted fall by a substantial 37.1%, from $4.0 billion in Q3 2024 to $2.5 billion in Q3 2025. The corresponding GMNA EBIT-adjusted margin decreased significantly by 3.5 percentage points. This sharp decline suggests considerable operational headwinds within GM’s most profitable region, potentially driven by market shifts, pricing pressure, or production issues. Conversely, GM International (GMI) posted a strong turnaround, with EBIT-adjusted increasing to $226 million in Q3 2025, up significantly from $42 million in the prior-year period. Furthermore, China equity income showed a positive result of $80 million in Q3 2025, reversing a loss of $137 million in Q3 2024.

Updated Full-Year Financial Guidance

Despite the mixed third-quarter results, GM’s management has expressed confidence in the company’s full-year outlook by revising its 2025 guidance upward. The updated full-year EBIT-adjusted guidance range is now set between $12.0 billion and $13.0 billion, a notable increase from the previous range of $10.0 billion to $12.5 billion. This revision suggests that the factors that impacted the third quarter are either considered transient or that performance in the final quarter of the year is expected to accelerate dramatically. The guidance for Adjusted automotive free cash flow also increased, with the updated range being $10.0 billion to $11.0 billion, up from the previous range of $7.5 billion to $10.0 billion. This upward revision in cash flow is a positive signal for the company’s liquidity and ability to fund its ongoing transition to electric vehicles (EVs) and return capital to shareholders.

The Road Ahead

The significant upward revision in GM’s full-year EBIT-adjusted and free cash flow guidance warrants close scrutiny of the factors driving this optimism, particularly considering the sharp drop in Q3 profitability. Investors will be monitoring GM’s execution in its North American market to see if the segment can rebound in Q4, aligning with the raised full-year targets. The increase in projected adjusted automotive free cash flow provides a buffer for the capital-intensive EV strategy. Future performance will heavily depend on successfully executing the EV strategic realignment, which resulted in a $1.6 billion adjustment in Q3, and maintaining the positive momentum seen in the international segment. The ultimate success of the updated guidance will hinge on both the sales performance of new models and the cost management surrounding strategic realignments and restructuring efforts.