GM Cut Its 2025 Forecast On Tariffs But Core Business Holds Up, Says Goldman Sachs

Goldman Sachs analyst Mark Delaney expressed views on General Motors’ GM FY25 guidance cut due to tariff uncertainty.

The automobile giant revised its guidance to include an estimated tariff-related impact of $4.0 billion to $5.0 billion based on the current regulatory and policy environment.

The company lowered its adjusted EPS guidance from $11.00-$12.00 to $8.25-$10.00, compared to the $10.15 estimate.

The analyst noted that key assumptions in the company’s FY25 guidance, excluding tariffs, include North America pricing remaining at current levels (up 0.5-1% year-over-year) and Cruise savings of approximately $0.5 billion.

Also, Delaney noted assumptions of GM Financial adjusted EBT of $2.5 billion and $3.0 billion, positive GM China equity income, and GMI excluding China for 2025, similar to 2024.

The analyst forecasts EBIT of $12.4 billion and EPS of $10.00.

Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF FTXR and Amplify ETF Trust Amplify AI Powered Equity ETF AIEQ.

Price Action: GM shares were down 0.4% at $45.05 on Thursday.

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