GM Shares Fall 5% as Core Profit Rises 22% but Cost Pressures Mount

3-line summary

• General Motors reported third-quarter adjusted EBIT up 22% year-over-year to $4.1 billion and adjusted EPS of $3.70, beating the $3.63 LSEG analyst consensus, driven by strong pickup-truck sales and a higher mix of expensive trucks amid declining EV sales; shares fell about 5% as the midpoint of narrowed full-year adjusted EPS guidance of $12.75-$13.75 came in below the $13.41 consensus.
• Commodity inflation, including logistics and computer-chip costs, is tracking toward about $2 billion this year, the high end of prior guidance, while total tariff costs are expected to land at the low end of the previous $2.5-3.5 billion range; CFO said steel, aluminum, and logistics costs have surged in the past two months and could cut next year's profit by about $2 billion if they don't ease.
• GM expects fourth-quarter results to be hurt by lower truck deliveries ahead of new Silverado and Sierra model launches, and called next year's "path forward more challenging," though it expects improvement if demand stays solid and input-cost pressure eases; JPMorgan cited uncertainty over whether elevated costs and the favorable truck mix will persist. GM's board approved a new $20 billion multiyear share-buyback program.

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