GM Suspends Guidance and Buybacks Amid New Trump Tariffs

General Motors (NYSE:GM) shares dipped nearly 3% in premarket trading after the automaker withdrew its 2025 earnings outlook and paused a $4 billion share repurchase program, citing uncertainty over newly announced U.S. tariffs.

Q1 Performance Beats Expectations, But Cash Flow Erodes

GM reported Q1 EPS of $2.78 versus the $2.61 consensus and revenue of $44.02 billion versus $43.26 billion expected. Adjusted EBIT of $3.49 billion narrowly topped forecasts, though down 9.8% YoY. However, adjusted automotive free cash flow plunged 26% to $811 million, missing the $833.9 million projection.

Analysts tracking GM's cash-generation trends can monitor the year-over-year decline through the Owner Earnings Statement Analysis API, which highlights shifts in true free-cash yields.

Tariff Uncertainty Forces Strategic Pause

CFO Paul Jacobson explained that “because the original guidance didn't include impact from tariffs, prior guidance can't be relied upon.” The unexpected trade levies—25% on finished vehicles and parts—have disrupted GM's planning, prompting a reassessment of cost structures and capital allocation before resuming buybacks.

Upcoming Investor Call

GM Chair and CEO Mary Barra, alongside CFO Paul Jacobson, will host a rescheduled earnings discussion on Thursday, May 1 at 8:30 am ET to provide updated guidance once tariff implications are clearer.