General Motors (GM -7.91%), a leading automaker with a broad portfolio of cars, trucks, and SUVs, announced its Q2 2025 earnings on July 22, 2025. The company delivered GAAP revenue of $47.1 billion, surpassing analyst estimates of $45.8 billion (GAAP). Adjusted diluted earnings per share were $2.53, exceeding the consensus expectation of $2.34 (non-GAAP). Despite outpacing Wall Street’s expectations, both revenue and profit saw notable year-over-year declines. Management maintained its full-year financial guidance, pointing to steady execution amid substantial industry headwinds, though North American profitability and free cash flow were materially lower than last year. Overall, the quarter showed resilience versus expectations but flagged ongoing core business pressures.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS-diluted-adjusted (Non-GAAP) | $2.53 | $2.34 | $3.06 | (17.3%) |
| Revenue | $47.1 billion | $45.8 billion | $47.97 billion | (1.8%) |
| EBIT-adjusted | $3.0 billion | $4.4 billion | (31.6%) | |
| Net income attributable to stockholders | $1.9 billion | $2.9 billion | (35.4%) | |
| Adjusted automotive free cash flow | $2.8 billion | $5.3 billion | (46.6%) |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding General Motors’ Business and Focus
General Motors designs, manufactures, and sells vehicles and related services worldwide. Its brand lineup includes Chevrolet, GMC, Cadillac, and Buick, serving customers in North America and around the globe. In addition to traditional gas-powered vehicles, it invests heavily in electric vehicles and advanced driver-assistance systems. The company also runs a significant auto finance segment through GM Financial.
In recent years, General Motors has centered its business strategy on five frontiers: transitioning its lineup to electric vehicles, investing in autonomous driving technologies, expanding software-driven services like OnStar and Super Cruise, sustaining its North American market leadership, and meeting strict environmental regulations. The ability to balance core vehicle sales with major investments in electrification and technology, all while navigating tariffs, cost pressures, and global competition, is critical to its ongoing success in a rapidly changing industry.
Quarter Highlights: Financial and Operational Performance
During the quarter, General Motors delivered better-than-expected top- and bottom-line results, yet almost every major financial measure declined from a year ago. Its revenue (GAAP) surpassed forecasts by $1.28 billion, but revenue fell 1.8% compared to Q2 2024. Adjusted earnings per share (non-GAAP) came in $0.19 higher than estimates but adjusted diluted earnings per share were down 17.3% compared to Q2 2024. Adjusted earnings before interest and taxes (EBIT-adjusted) dropped 31.6%, and net income to shareholders fell 35.4 % year over year, reflecting lower profits and continued heavy investment.
The company’s North American business saw a sharp drop in profitability, with adjusted segment earnings down by almost half and the segment margin compressed to 6.1%, compared to 10.9% in Q2 2024. Wholesale vehicle volumes in North America were 849,000 units, though U.S. retail market share increased to 17.4%. International operations improved with positive equity income out of China—a turnaround from a loss last year—and international segment earnings more than doubled, though from a low base. However, sales volumes continued to slip in most regions outside North America.
General Motors remains heavily focused on its electric vehicle portfolio, including the Chevrolet Equinox EV (compact SUV), Cadillac Lyriq (luxury SUV), and Escalade IQ (full-size luxury SUV). Management reported progress toward cost reduction and increasing the number of EV models that are profitable on a variable-cost basis, but did not disclose specific EV sales figures for the quarter. The company is deliberately moderating EV production to align with consumer demand and avoid discounting, even if it means slower scale growth in the short term. One-time items included costs from realignment in the Ultium joint venture (battery cells), restructuring expenses in China, and continued integration of Cruise (autonomous vehicle subsidiary), collectively totaling $535 million.
The Super Cruise hands-free driving system—a driver-assistance technology available on many GM vehicles—doubled its installed base year over year in Q1 2025 and is expected to be in over 700,000 vehicles by year-end 2025. The OnStar safety and connectivity platform, available in 20 countries, continues its expansion but reported no separate revenue disclosure this period. Nevertheless, GM says these areas are important for future subscription-based revenues as vehicles become more connected and autonomous.
Cash outflows and margin pressure remain notable. Adjusted automotive free cash flow dropped 46.6%. Capital expenditures reached $2.1 billion. The company completed an accelerated share repurchase early in the year but paused any further buybacks given macroeconomic and policy uncertainty.
Looking Ahead: Guidance and Key Watch Areas
General Motors maintained its full-year 2025 outlook. Management reaffirmed guidance for adjusted EBIT of $10.0 billion to $12.5 billion for the year ending December 31, 2025, adjusted diluted earnings per share of $8.25 to $10.00, and adjusted automotive free cash flow of $7.5 billion to $10.0 billion. This outlook incorporates a major expected tariff headwind of $4 billion to $5 billion, with the assumption that about 30 % of these costs can be mitigated through internal cost actions, better supply chain management, and operational improvements. Capital spending for FY2025 remains projected at $10 billion to $11 billion.
For the remainder of the year, investors will want to monitor progress on North American margins, the pace of electric vehicle sales and profitability, software services uptake, and effects from tariffs or changes in trade and environmental policy. Management confirmed that no price increases are assumed in their outlook, and that buybacks are on pause until the business environment becomes clearer. General Motors continues to face structural margin pressure and softening cash generation, but remains focused on managing risks while pursuing its transition to electric and software-driven mobility.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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