Shares of General Motors Co. (NYSE:GM) fell 4.1% Tuesday after the company posted better-than-expected second-quarter earnings but reported a sharp decline in profit compared to last year, primarily due to a downturn in its North American business.
The automaker reported adjusted earnings per share of $2.53 for the quarter, beating the analyst consensus of $2.35. Revenue reached $47.1 billion, slightly ahead of the $45.81 billion forecast, but down 1.8% from the $48 billion it recorded in Q2 2024.
Despite the earnings beat, net income attributable to shareholders sank 35.4% year-over-year to $1.9 billion from $2.9 billion. EBIT-adjusted also declined, falling 31.6% to $3 billion from $4.4 billion in the same period a year ago.
The bulk of the pressure came from GM’s core North American division, where EBIT-adjusted dropped 45.5% to $2.4 billion and margins narrowed to 6.1%, down from 10.9% a year earlier. These results overshadowed a notable improvement in the company’s international performance, which saw EBIT-adjusted climb to $204 million, up from $50 million.
“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 Chair and CEO Mary Barra.
GM reaffirmed its 2025 full-year adjusted EPS guidance of $8.25 to $10.00, aligning with the current consensus estimate of $9.25. It also maintained expectations for adjusted automotive free cash flow in the range of $7.5 billion to $10 billion.
Meanwhile, the company’s China operations posted a turnaround, reporting equity income of $71 million versus a loss of $104 million in the prior-year quarter.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.