GM’s core profit rises 22% on strong U.S. truck sales

ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountGeneral Motors Co. GM-N posted on Tuesday a 22% rise in first-quarter core profit and lifted its full-year earnings forecast, bolstered by a resilient U.S. car market and an expected tariff refund.GM shares were up about 4 per cent in premarket trading.The Detroit automaker reported earnings before interest and taxes of US$4.3-billion, or US$3.70 per share, which beat analysts’ estimate of US$2.62, according to LSEG data.GM raised its 2026 profit outlook by US$500-million, which is the same amount it expects to get back in refunds stemming from a U.S. Supreme Court ruling that struck down some of the Trump administration’s tariffs. It now expects full-year core profit to be US$13.5-billion to US$15.5-billion.The automaker’s quarterly net income dropped 6 per cent from a year earlier to US$2.6-billion, mostly due to a US$1.1-billion charge to settle supplier claims for slowing electric-vehicle programs. Revenue of US$43.6-billion was down less than 1 per cent.American consumers have continued buying cars despite a year of economic uncertainty from tariffs, elevated gas prices and a shaky job market. “We are clearly operating in a very dynamic environment, which isn’t unusual for this industry,” GM chief executive officer Mary Barra said in a statement.In North America, GM’s biggest money maker, its profit margin improved to 10.1 per cent from 8.8 per cent a year earlier, despite a 10-per-cent decline in sales in the first quarter.The sales drop was partly explained by a tough comparison to first quarter 2025, when U.S. buyers snapped up new vehicles in a rush to beat tariff-related price hikes.GM said cost savings from eased tailpipe emissions regulations in the U.S., as well as lower warranty expenses, helped offset the decline in sales.In China, where GM is restructuring the business, the automaker reported equity income of US$165-million, versus US$45-million a year ago.Its international business excluding China saw core profit of US$123-million, up from US$30-million.Like many other automakers, GM has pulled back on production of EVs because of weaker demand following pro-fossil-fuel policies enacted by the Trump administration last year. GM’s EV sales fell 43 per cent in the final three months of last year.In addition to the US$1.1-billion first-quarter charge, GM last year recorded US$7.6-billion in writedowns on its EV programs.

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