General Motors (NYSE:GM) had its best day in nearly 6 years and set a new 52-week high as a top- and bottom-line beat in the third quarter, amplified by upbeat guidance, launched shares more than 16% higher on Tuesday.
“GM hit the trifecta,” said UBS analyst Joseph Spak, with an EPS beat, raised EBIT/EPS guidance, and “socializing that 2026 will be a stronger year than 2025 with a top priority to restore [GM North America] EBIT margins to 8%-10%.
The results underscored GM’s ability to navigate a challenging environment for automakers given the burden from import tariffs, lackluster demand for EVs, and high warranty costs that continue to plague companies like Ford (F) and General Motors (NYSE:GM).
Regarding the latter, the company intends to tackle warranty expense by “addressing the root cause inside GM at our suppliers and at our dealerships.” At the same time, costs tied to the former will continue to be mitigated by GM’s efforts to move more production to the U.S. complemented by recently announced MSRP tariff offset program that will help make U.S. produced vehicles more competitive over the next 5 years.
“I’m happy to share that we have decided to more than double the planned Chevrolet Equinox production at our Fairfax Assembly plant in Kansas,” CEO Mary Barra said on the company’s earnings call, adding that GM (NYSE:GM) plans to produce more than 2 million vehicles per year in the U.S. which represents more than 80% of all vehicles that were sold in the U.S. last year.
These efforts and their intended impacts likely contributed to the company’s upbeat outlook for the year. GM (GM) raised its profit guidance by 11% at the midpoint, and lowered its tariff burden for FY25 by $500M. And as the company rightsizes its EV production to meet lackluster demand, along with lower fixed costs and regulatory requirements, 2026 is expected to be stronger.
“We have multiple levers to carry our current momentum forward,” CFO Paul Jacobson said on the call. “If the environment is the same, there’s a lot of tools that we have that can lower our costs and drive better performance.
GM (GM) shares ended the day with a gain of more than 14%, lifting rival Ford (F), as well as suppliers including Magna International (MGA) and Adient (ADNT).