General Motors Reports 1.8% Revenue Decline, 35.4% Net Income Drop in Q2 2025

General Motors Co. reported its second-quarter 2025 financial results, revealing a slight decrease in revenue compared to the previous year. The company's revenue for the quarter was $47.1 billion, a 1.8% decline from $47.97 billion in the same period last year. This decrease reflects the ongoing challenges in the automotive industry, including supply chain disruptions and fluctuating demand. Despite the revenue drop, GM’s earnings per share (EPS) adjusted for dilution stood at $2.53, surpassing the market expectation of $2.45. This achievement highlights the company’s ability to manage costs and optimize operations effectively.

GM’s net income attributable to stockholders fell to $1.9 billion, a significant decrease from $2.93 billion in the previous year, marking a 35.4% decline. This drop in net income can be attributed to increased costs and strategic investments aimed at future growth. The company’s EBIT-adjusted margin also experienced a decline, dropping from 9.3% in the second quarter of 2024 to 6.4% in 2025. This reduction reflects the impact of higher operational expenses and restructuring efforts. However, GM’s ability to surpass EPS expectations indicates its focus on maintaining profitability amidst challenging market conditions.

Looking ahead, General Motors has maintained its full-year financial guidance, projecting net income attributable to stockholders between $7.7 billion and $9.5 billion for the year ending December 31, 2025. The company anticipates an EBIT-adjusted range of $10 billion to $12.5 billion, reflecting confidence in its strategic initiatives and operational efficiency. GM’s guidance for diluted earnings per common share is set between $8.22 and $9.97, with EPS-diluted-adjusted expected to range from $8.25 to $10.00. This outlook underscores the company’s commitment to delivering value to shareholders while navigating the evolving automotive landscape. The company continues to invest in electric vehicle (EV) technology and infrastructure, aligning with its vision for a sustainable future.

GM's adjusted earnings before interest and taxes (EBIT) for the second quarter were $3.04 billion, marking a 31.6% decrease from $4.44 billion in the same period last year. This figure, however, exceeded analyst forecasts of $2.89 billion. The company's adjusted earnings per share (EPS) were $2.53, down 17% from $3.06 a year earlier. Revenue for the quarter was $47.1 billion, a 1.8% decline from $47.97 billion in the previous year. These year-over-year declines represent GM's first since the fourth quarter of 2023, with the revenue decrease being the most significant since the fourth quarter of 2021.

GM's North America margin, adjusted for earnings before interest and taxes, was 6.1%, a 44% drop from 10.9% a year ago. The company is navigating trade uncertainties and tariff risks by investing $4 billion in several American plants. This includes moving or increasing production of two Mexican-produced vehicles to U.S. plants and adding manufacturing of pickup trucks in Michigan. The company's full-year guidance, modified in May due to tariffs, includes an adjusted EBIT of between $10 billion and $12.5 billion, down from the January guidance of $13.7 billion to $15.7 billion. The yearly outlook also includes net income attributable to stockholders of $8.25 billion to $10 billion, down from $11.2 billion to $12.5 billion earlier this year. Adjusted automotive free cash flow is projected to be between $7.5 billion and $10 billion, down from the previous range of $11 billion to $13 billion.

GM reported 974,000 vehicle sales in the second quarter, falling short of the 1 million estimated by analysts. Electric vehicle sales totaled 46,300 for the quarter. The company's commitment to electric vehicles remains a focal point for investors, especially with the recent tax-and-spending bill ending the $7,500 tax credit for new electric vehicles and $4,000 credit for used EVs after September 30. Analysts predict a slower introduction of EV models across the auto industry and a potential pull-forward of EV sales in the third quarter. GM's EV plans are now contingent on consumer demand, which has been slower than expected.