General Motors Company Q3 FY2025 earnings call

• Acknowledged the dedication of the GM team in navigating a changing regulatory and policy environment. - Delivered strong earnings and free cash flow, with the U.S. achieving its highest third - quarter market share since 2017 and the restructured China business being profitable. - Raised full - year guidance. - Appreciated the tariff updates, announced $4 billion in capital investments to onshore production over the next 2 years, and decided to more than double Chevrolet Equinox production at Fairfax Assembly plant. - Monitored chip supply from China, adjusted EV capacity due to regulatory and incentive changes, recorded a $1.6 billion special item charge, stopped BrightDrop production, and continued to invest in EV technology and ICE strategy. - Focused on returning North America to historical 8% - 10% EBIT margins, driving EV profitability improvements, managing warranty expense, and growing software and services like OnStar and Super Cruise.

Total company EBIT - adjusted was $3.4 billion in the third quarter. North America delivered Q3 EBIT - adjusted margins of 6.2%, enabled by record crossover deliveries and strong performance of full - size pickups and SUVs. EV sales reached record levels in Q3, with GM solidifying its #2 position in the U.S. EV market with 67,000 deliveries and a 16.5% share. GM China's restructured business was profitable again. GM Financial posted Q3 EBT - adjusted of $800 million.

• Raised 2025 calendar year guidance to EBIT - adjusted of $12 billion to $13 billion, EPS diluted adjusted of $9.75 to $10.50 per share, and adjusted automotive free cash flow of $10 billion to $11 billion. - Expect 2026 to be better than 2025 with levers such as progress on EV losses, warranty costs, tariff offsets, regulatory requirements and fixed costs.

• Monitor supply of certain chips from China which has the potential to impact production. - Evolving regulatory framework and end of federal consumer incentives affecting near - term EV adoption and increasing variable costs. - Tariff - related risks including unresolved issues with Korea, Mexico, Canada, etc.

Q: Joseph Spak asked about updated tariff disclosure, how the MSRP offset works and its impact.

A: Paul Jacobson explained that the President's announcement expanded the pool of eligible parts for the MSRP offset, which gives GM some ability to use the offset more and drives tariff savings.

Q: Itay Michaeli asked about shifting emissions regulations and Super Cruise.

A: Mary Barra talked about emission regulation impact on ICE vehicles and Super Cruise progress, including integration with Google Maps and the Cruise team's work.

Q: Dan Levy asked about tariff mitigation and runway of actions.

A: Paul Jacobson discussed go - to - market, footprint, and fixed cost actions and their runway, expecting net tariffs to be lower in 2026 than in 2025.

Q: Michael Ward asked about cultural shift and capital intensity.

A: Mary Barra and Paul Jacobson talked about team agility and capital discipline, with Paul noting the benefits of being leaner post - COVID.

Q: Ryan Brinkman asked about GM Financial portfolio performance.

A: Paul Jacobson and Susan Sheffield discussed GM Financial portfolio performance, noting it is predominantly prime and resilient, with charge - offs at 1.2% year - over - year.

Q: Adam Jonas asked about China competition and autonomous vehicles.

A: Mary Barra talked about China competition needing a level playing field and autonomous vehicle focus on personal autonomy, with Super Cruise having approximate 70% margins.

Q: Emmanuel Rosner asked about EV losses and CapEx.

A: Paul Jacobson talked about EV capacity rightsizing to stabilize profitability and CapEx allocation balancing investments in EV and ICE.

Q: Chris McNally asked about pricing and EV losses.

A: Paul Jacobson discussed pricing discipline and EV loss improvement, noting stable supply - demand balances and disciplined incentives.

Q: Federico Merendi asked about China partnerships and 2026 tariff assumptions.

A: Mary Barra talked about partnerships with Hyundai for efficiency and monitoring tariff assumptions for Mexico and Canada without built - in changes