GM Q2 Earnings and Revenue Decline Amid Tariff Impact

General Motors reported Q2 adjusted earnings and revenue fell, with a tariff impact noted. The company's earnings per share were $1.10, down from $1.34 in the same period last year, while revenue was $26.8 billion, a decrease from $32.7 billion. The decline was partly due to a $300 million tariff impact.

General Motors (GM) reported its second-quarter (Q2) 2025 financial results, showing a decline in adjusted earnings and revenue, with a notable impact from tariffs. The company's earnings per share (EPS) were $1.10, down from $1.34 in the same period last year, while revenue was $26.8 billion, a decrease from $32.7 billion. The decline was partly due to a $300 million tariff impact [2].

GM's net income attributable to stockholders fell to $1.89 billion, a 35% decrease from $2.93 billion in the previous year. The company's earnings before interest and taxes (EBIT) also declined, dropping from $4.43 billion to $3.04 billion, a 31.6% decrease [2]. Despite these declines, GM's adjusted earnings per share (EPS) of $2.53 exceeded market expectations of $2.45, highlighting the company's ability to manage costs and optimize operations effectively [2].

The company 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 [2].

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 [2].

Despite the challenges, GM remains committed to its electric vehicle (EV) strategy. The company's EV sales totaled 46,300 for the quarter, with a focus on expanding its EV product portfolio [2]. GM's EV plans are now contingent on consumer demand, which has been slower than expected, and 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 [2].

References:
[1] https://www.freep.com/story/money/cars/general-motors/2025/07/22/general-motors-q2-profits-tariffs/85314949007/
[2] https://www.ainvest.com/news/general-motors-reports-1-8-revenue-decline-35-4-net-income-drop-q2-2025-2507/
[3] https://finance.yahoo.com/news/live/earnings-live-gm-stock-sinks-on-tariff-hit-coca-cola-to-launch-cane-sugar-soda-143736342.html