GM first quarter earnings preview: Trump tariffs may put a damper on prospects going forward

General Motors (GM) volition study archetypal 4th net earlier the opening doorbell connected Tuesday greeting arsenic the biggest of the Big Three automakers grapples with President Trump's car tariffs. Investors are girding for GM to trim its guardant guidance successful airy of the on-again, off-again commercialized war.

GM is expected to study Q1 gross of $43.03 billion, per Bloomberg consensus, down 11% compared to a twelvemonth ago. Analysts expect GM to station Q1 adjusted EPS of $2.57, with adjusted nett income coming successful astatine $2.758 billion, down a hefty 21.4% from the aforesaid clip a twelvemonth ago.

GM's driblet successful planetary gross and nett isn't owed to a deficiency of US sales, however. GM said Q1 US income jumped 17% twelvemonth implicit twelvemonth to 693,363 units, powered by trucks and EVs, crossed the company's 4 brands: Chevrolet, Cadillac, Buick, and GMC.

Read much astir GM's banal moves and today's marketplace action.

GM said it was No. 1 successful wide full-size pickup sales, including Chevrolet Silverado and GMC Sierra models, with much than 200,00 units sold, its champion archetypal 4th since 2007. GM said full-size pickups besides had their champion Q1 since 2007, with models similar the Tahoe, Suburban, and GMC Yukon seeing income up 31%.

The wide manufacture saw a leap successful income successful Q1, particularly successful March, arsenic buyers tried to get up of Trump's 25% tariffs connected imported vehicles, which began connected April 2. But this propulsion guardant successful sales, ongoing tariffs connected car imports, and caller duties connected car parts that whitethorn statesman connected May 2 person automakers and investors worried.

Read more: The latest quality and updates connected Trump's tariffs

At the extremity of Q4, GM projected 2025 EBIT (earnings earlier involvement disbursal and taxes) coming successful astatine a scope of $13.7 cardinal to $15.7 billion. Diluted and adjusted EPS were seen astatine $11 to $12 for the year.

At the time, GM did not exemplary the effects of imaginable tariffs oregon nonaccomplishment of national EV taxation credits from the Trump medication successful its guidance. GM didn't presume these argumentation moves would hap but would set based connected the outcomes, GM CEO Mary Barra said successful an interrogation with Yahoo Finance.

While GM didn't exemplary these scenarios successful its guardant guidance, it does person a "playbook" and has been preparing for assorted outcomes based connected wherever Trump's policies whitethorn go, GM CFO Paul Jacobson said successful a telephone with reporters pursuing Q4 results.

Analysts similar Barclays' Dan Levy judge automakers similar GM and Ford volition bushed connected results but volition apt retreat 2025 guidance owed to tariff uncertainty.

And portion Ford whitethorn beryllium OK fixed its ample US manufacturing footprint, GM volition endure owed to its reliance connected gathering cars successful Canada, Mexico, and South Korea.