GM Shares Slide as Iran Conflict Pushes Up Costs Despite Profit Beat
General Motors beat third-quarter estimates but narrowed its annual outlook as metals and logistics costs rise. Shares fell 5.5% on Tuesday.
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what happened
General Motors reported higher third-quarter profit and revenue that topped Wall Street estimates. Still, the stock dropped 5.5% to $78.22, on pace for its steepest one-day decline in more than a year. According to Dow Jones Newswires, the war in Iran has raised commodity and logistics costs, prompting the automaker to narrow its full-year adjusted EPS guidance to $12.75 to $13.75.
Chief Executive Mary Barra said, "There are clear external headwinds, and in some cases, they are intensifying." GM projects a $2 billion headwind this year from commodity inflation, logistics and memory DRAM costs, plus an extra $1 billion to $1.5 billion tied to software, supply chain and U.S. onshoring. The company also approved a new $20 billion multiyear share-repurchase plan.
why it matters
Record copper prices and elevated steel prices are squeezing automakers, and GM's guidance suggests a prolonged Middle East conflict could weigh on margins across the industry. For markets, it signals that input costs are starting to outweigh sales gains.
market impact
Auto sector and copper: higher metal and logistics costs pressure carmaker margins
tags
instruments
sources
- General Motors Stock Slides as Iran Conflict Drives Up Costs — 2nd Update — Dow Jones Newswires, 20 October 2026 at 13:53 UTC
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