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Investing.com -- General Motors Co. reported second-quarter earnings that beat analyst expectations, but shares fell 4.1% as profit declined significantly from last year due to weaker performance in its crucial North American market.
The automaker posted adjusted earnings of $2.53 per share for the second quarter, exceeding analyst estimates of $2.35. Revenue came in at $47.1 billion, above the consensus forecast of $45.81 billion but down 1.8% from $48 billion in the same period last year.
Despite the earnings beat, GM’s net income attributable to stockholders plunged 35.4% to $1.9 billion compared to $2.9 billion a year earlier. The company’s EBIT-adjusted (earnings before interest and taxes) fell 31.6% to $3 billion from $4.4 billion in Q2 2024.
The decline was largely driven by GM’s North American operations, where EBIT-adjusted dropped 45.5% to $2.4 billion, with margins shrinking to 6.1% from 10.9% a year ago. This weakness overshadowed improvements in GM’s international operations, which saw EBIT-adjusted rise to $204 million from $50 million last year.
"Our second quarter results reflect the challenging environment in North America, but we’re maintaining our full-year guidance as we expect improved performance in the second half," said GM Chair and CEO Mary Barra.
GM reaffirmed its full-year 2025 adjusted EPS guidance of $8.25 to $10.00, which compares to the analyst consensus of $9.25. The company also maintained its adjusted automotive free cash flow forecast of $7.5 billion to $10 billion.
The automaker’s China operations showed signs of recovery, with equity income of $71 million compared to a loss of $104 million in the same quarter last year.