General Motors just posted numbers that beat what analysts were expecting. Revenue came in at $48.03 billion for the second quarter, above the $47.01 billion that forecasters had predicted.
The company also raised its full-year outlook. It raised its forecast for adjusted earnings per share for the full year to $12 to $14, versus the earlier $11.50 to $13.50. Additionally, the company raised its forecast for adjusted free cash flow from automotive operations to between $9.5 billion and $11.5 billion, up from the previous $9 billion to $11 billion.
Chief Financial Officer Paul Jacobson summed it up on CNBC's "Squawk Box." "These results are very consistent with what we've been doing for the last several years," he said. He also pointed out that "Our first-half earnings per share is 25% higher than the first half at any time in our history."
Stockholders' net income dropped by 31.1% year over year, reaching $1.3 billion in Q2. Additionally, GM revised its forecast downward for that figure to a range of $8.4 billion to $9.8 billion, a drop from its earlier reduced guidance of $9.9 billion to $11.4 billion. That drop is tied to big charges related to GM's electric vehicle pullback.
First, vehicle prices held up well. The average transaction price during the quarter was about $52,000. Second, warranty costs are coming down.
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Third, electric vehicle losses are narrowing. Starting from the latter part of last year, the company has booked $10.9 billion in charges tied to its electric vehicle business. Through the second quarter, GM has disbursed $4.5 billion out of the anticipated $7.2 billion in cash costs from its EV retrenchment.
But the company said it has "substantially" completed those material charges.
Mary Barra, GM's CEO and chair, highlighted the North American business in a letter to shareholders. "Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago, and we continue to lower our warranty costs, reduce EV losses, and increase operating efficiency. In addition, GM International, inclusive of our China joint ventures, was profitable," she said.
The company's overall adjusted profit margin was 8.2%. Barra further pointed out stable vehicle prices and said that a "very attractive lineup" of pickup trucks and SUVs helped drive performance.
Jacobson called consumer demand "resilient" and labeled GM's stock a "bargain" at about $75 per share, representing a gain of over 40% from a year earlier. He said GM's "momentum is palpable."
Meanwhile, adjusted earnings rose about 30% to surpass $3.9 billion. Revenue increased 1.9% compared to the same period last year. In Q2 2025, GM posted $47.12 billion in revenue, $1.9 billion in net income for stockholders, and $3.04 billion in adjusted EBIT.
GM's stock already trades about 40% higher than a year ago.
But investors should keep a few things in mind. The company still faces headwinds. Tariffs remain a wild card - GM referenced a $500 million tariff rebate in its April guidance adjustment, and it will continue to monitor the impact.
The EV pullback, while substantially completed, has cost billions. And net income is down sharply because of those charges, even if adjusted earnings look strong.
GM is making money on the vehicles it sells today, spending less on fixing past mistakes, and getting closer to the point where its electric car business stops being a drag. The bottom line: GM showed it can deliver profits in a tricky environment. But for now, the numbers say the automaker is on solid ground.
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