General Motors shares fell more than 7% in premarket trading on the 20th, as rising raw material costs overshadowed third-quarter results that beat market expectations and a large new share buyback plan.
GM's third-quarter adjusted earnings before interest and taxes rose 21.6% from a year earlier to $4.1 billion (about 5.45 trillion won), according to Bloomberg. Adjusted earnings per share came in at $3.70, above the $3.63 average estimate compiled by the London Stock Exchange Group. Revenue rose about 3% from a year earlier to $50 billion (about 66.45 trillion won).
GM's board also approved a new $20 billion share repurchase program. The move follows a $6 billion buyback announced in January, and the automaker has spent $29.5 billion on share repurchases since 2023.
The stock slumped despite the earnings beat and the buyback plan because of higher raw material prices. GM said rising raw material costs would create a cost burden of about $2 billion. Reflecting that, the company also adjusted its full-year profit outlook. GM now expects 2026 adjusted EBIT of $14.5 billion to $15.5 billion, narrowing both ends of the $14 billion to $16 billion range it gave in July.