Stock Experience Premarket Decline Amid An Uncertain Outlook

General Motors (NYSE:GM) shares fell nearly 3% in premarket trading after the automaker retracted its 2025 earnings forecast and suspended a $4 billion share buyback plan due to uncertainties surrounding newly imposed U.S. tariffs.

Strong Q1 Results but Cash Flow Concerns

GM reported first-quarter EPS of $2.78, exceeding consensus estimates of $2.61, and generated $44.02 billion in revenue compared to the anticipated $43.26 billion. Their adjusted EBIT reached $3.49 billion, slightly above forecasts, albeit a 9.8% decline year-over-year. Nevertheless, the company’s adjusted automotive free cash flow dropped by 26% to $811 million, falling short of the expected $833.9 million.

Analysts tracking GM’s cash-generation performance can use the Owner Earnings Statement Analysis API to monitor trends and evaluate free cash yield shifts.

Impact of Tariff Uncertainty on Strategy

CFO Paul Jacobson stated, “Because the original projections did not consider the effects of tariffs, previous guidance can no longer be relied upon.” The unexpected tariffs—set at 25% for finished vehicles and components—have disrupted GM’s planning processes, prompting a reevaluation of cost structures and capital allocations before resuming buybacks.

Upcoming Investor Update

GM Chair and CEO Mary Barra, along with CFO Paul Jacobson, will conduct a rescheduled earnings call on Thursday, May 1 at 8:30 am ET to offer updated guidance once the implications of tariffs become clearer.