GM Holds Guidance Despite Margin Squeeze and Profit Drop in Q2

Published 22/07/2025, 14:37
Updated 22/07/2025, 15:00

General Motors (NYSE:GM) released its second-quarter 2025 financial results, showcasing a slight revenue decrease compared to the previous year. The company maintained its full-year guidance despite facing challenges in the automotive sector.

General Motors Reports Decrease in Revenue for Q2

In the second quarter of 2025, General Motors reported revenue of $47.1 billion, a decrease from $47.97 billion in the same period last year. This 1.8% decline 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.

Comparing the current quarter’s performance against expectations, GM’s revenue of $47.1 billion exceeded the anticipated $45.16 billion, demonstrating resilience in maintaining its market position. However, 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.

GM Maintains Full-Year Financial Guidance

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.

The company’s ability to maintain guidance amidst market fluctuations demonstrates its strategic foresight and adaptability. By leveraging advanced technology and focusing on innovation, GM aims to strengthen its position in the automotive industry. As the company moves toward an all-electric future, its continued investment in EVs and commitment to operational excellence are expected to drive long-term growth and shareholder value.

***

Looking to start your trading day ahead of the curve?Get up to speed before the bell with Bull Whisper—a sharp, daily premarket newsletter packed with key news, market-moving updates, and actionable insights for traders.Start your day with an edge. Subscribe to Bull Whisper using this link.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.