General Motors (GM) began 2025 with a mixed set of first-quarter results that highlighted both the company's underlying strength and ongoing challenges in a dynamic global environment. Revenue rose 2.3% year-over-year to $44.0 billion, driven by higher vehicle volumes in North America and sustained contributions from GM Financial. However, net income slipped 6.6% to $2.78 billion, and EBIT-adjusted declined 9.8% to $3.49 billion, reflecting tighter margins and a notable drop in operating cash flow. Net income margin fell to 6.3% from 6.9%, and EBIT-adjusted margin narrowed to 7.9%, down from 9.0% a year earlier.
Performance in GM North America remained solid but showed margin compression. The segment posted EBIT-adjusted of $3.29 billion, a 14.4% decline despite a 4.6% increase in wholesale sales and revenue growth to $37.39 billion. In contrast, GM International swung to a $30 million profit, recovering from a $10 million loss, even as sales volumes and revenue declined. Meanwhile, GM’s China equity income rebounded sharply, delivering $45 million in earnings versus a $106 million loss in Q1 2024, signaling early signs of stabilization in the region.
Losses at Cruise, GM’s autonomous vehicle unit, narrowed significantly to $273 million, down from $442 million, while GM Financial posted an EBT-adjusted of $685 million, a 7.1% year-over-year decline, though revenue increased to $4.16 billion. On the EV front, GM’s Ultium Cells JV generated $241 million in equity earnings, up from $156 million, reinforcing the growing role of battery production in GM’s electrification strategy.
Despite pressure on margins, GM increased returns to shareholders. The company spent $2.01 billion on share repurchases, sharply higher than the $280 million returned a year ago, and paid $116 million in dividends. Capital expenditures fell to $1.81 billion, and adjusted automotive free cash flow came in at $811 million, reflecting both lower operating cash flow and reduced investment outlays. As of March 31, automotive cash stood at $12.02 billion, while total automotive debt was $15.86 billion, and equity totaled $66.43 billion.
On the earnings front, EPS-diluted jumped 30.9% to $3.35, boosted by the reversal of Cruise-related preferred equity, while EPS-diluted-adjusted rose 6.1% to $2.78. Notably, ROIC-adjusted improved to 20.7%, up from 16.7%, though return on equity declined to 8.6% from 15.1%.
Looking ahead, management emphasized its disciplined approach to capital allocation and its commitment to EV investments, noting that current 2025 guidance excludes potential tariff impacts. GM’s Q1 results underscore the automaker’s ability to navigate uncertainty with a strong product mix, improving international performance, and a focus on shareholder returns and long-term transformation.