Executive Summary

Q2 2025 results: revenue $47.12B, EPS-diluted-adjusted $2.53, EBIT-adjusted $3.04B; FY25 guidance unchanged (EBIT-adjusted $10.0–$12.5B, EPS-diluted-adjusted $8.25–$10.00, adjusted auto FCF $7.5–$10.0B) .
Results vs consensus: revenue beat by ~~$0.84B and EPS beat by $0.05; significant headwinds from tariffs (~~$1.1B net impact in Q2) and higher warranty costs (~$300M YoY) were partially offset by stable retail pricing and mix; fleet pricing moderated .
Segment: GMNA EBIT-adjusted $2.42B (6.1% margin) on strong SUVs and crossovers; China turned to positive equity income ($71M); GM Financial EBT-adjusted $704M; Cruise operations now included in GMNA .
Capital allocation: $2B ASR completed (43M shares retired) and open market buybacks resumed in early July; quarterly dividend maintained at $0.15/share .

What Went Well and What Went Wrong

What Went Well

China delivered second consecutive quarter of YoY sales growth and positive equity income; GM was “the only foreign OEM to gain share” in China, aided by competitive NEV launches .
Crossover and EV momentum: Chevrolet Equinox (ICE and EV) gained nearly six points of U.S. retail share YoY; Chevrolet is now the #2 U.S. EV brand; Cadillac became #5 EV brand, with >75% conquest rates for Lyriq .
Software and services scale: Super Cruise offered on 23 models; >$4B of deferred revenue booked for Super Cruise/OnStar; 2025 Super Cruise revenue projected >$200M, doubling in 2026 .

What Went Wrong

Tariffs compressed profitability: net tariff impact was ~$1.1B in Q2; management expects higher net tariff costs in Q3 and gross FY impact of $4–$5B with ~30% mitigation targeted .
Warranty pressures: ~$300M YoY increase tied to L87 engine and early EV software issues; EV inventory adjustments and fleet pricing moderation further weighed on margins and cash flow .
GMNA margin down to 6.1% from 8.8% in Q1 and 10.9% in prior-year Q2, primarily due to tariffs and warranty costs; adjusted auto FCF fell ~47% YoY in Q2 .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$47.70	$44.02	$47.12
Net Income attributable to stockholders ($USD Billions)	$(2.96)	$2.78	$1.90
EPS - Diluted (GAAP) ($)	$(1.64)	$3.35	$1.91
EPS - Diluted Adjusted ($)	$1.92	$2.78	$2.53
EBIT-Adjusted ($USD Billions)	$2.51	$3.49	$3.04
Net Income Margin (%)	(6.2)%	6.3%	4.0%
EBIT-Adjusted Margin (%)	5.3%	7.9%	6.4%
Automotive Operating Cash Flow ($USD Billions)	$4.77	$2.40	$4.65
Adjusted Automotive Free Cash Flow ($USD Billions)	$1.82	$0.81	$2.83

Q2 2025 vs. S&P Global Consensus	Consensus	Actual
Revenue ($USD Billions)	$46.28*	$47.12
EPS - Diluted Adjusted ($)	$2.48*	$2.53

Values retrieved from S&P Global*. GM reported beats on revenue (~$0.84B) and EPS ($0.05), despite tariff and warranty headwinds .

Segment Breakdown

Segment Metric	Q4 2024	Q1 2025	Q2 2025
GMNA EBIT-Adjusted ($USD Billions)	$2.27	$3.29	$2.42
GMNA EBIT-Adjusted Margin (%)	5.8%	8.8%	6.1%
GMI EBIT-Adjusted ($USD Millions)	$221	$30	$204
China Equity Income (Loss) ($USD Millions)	$(4,060)	$45	$71
GM Financial EBT-Adjusted ($USD Millions)	$719	$685	$704
Cruise EBIT-Adjusted ($USD Millions)	$(418)	$(273)	n/a (included in GMNA)

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Wholesale Vehicle Sales – GMNA (000s)	876	827	849
Wholesale Vehicle Sales – GMI (000s)	163	85	125
Wholesale Vehicle Sales – Total (000s)	1,039	912	974
U.S. Market Share (%)	17.5%	17.2%	17.4%
Fleet Sales as % of Total (%)	16.9%	16.5%	17.8%
North America Two-Shift Utilization (%)	103.5%	109.5%	117.6%
U.S. Dealer Inventory (units)	—	—	526,000

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EBIT-Adjusted ($USD Billions)	FY 2025	$10.0–$12.5	$10.0–$12.5	Maintained
EPS-Diluted-Adjusted ($)	FY 2025	$8.25–$10.00	$8.25–$10.00	Maintained
Adjusted Auto FCF ($USD Billions)	FY 2025	$7.5–$10.0	$7.5–$10.0	Maintained
Capex ($USD Billions)	FY 2025	$10–$11	$10–$11	Maintained
GM Financial EBT-Adjusted ($USD Billions)	FY 2025	$2.5–$3.0	On track for $2.5–$3.0	Maintained
Dividend per share ($)	Quarterly	$0.15	$0.15 (payable Sept. 18, 2025)	Maintained

Note: GM indicated FY25 guidance unchanged; Q2 call reiterated GM Financial range and stable pricing assumptions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Tariffs/Macro	FY25 guide lowered at Q1 to reflect $4–$5B gross tariffs; targeting ~30% mitigation via pricing, cost, footprint	~$1.1B net Q2 impact; Q3 expected higher; ~30% FY mitigation on track; SAR ~16M assumed	Headwind intensifying near-term; mitigation progressing
Pricing Discipline	Q1 pricing +$900M YoY; incentives below industry; fleet comps tough	Retail pricing stable; fleet pricing moderated; FY NA pricing +0.5–1%	Stable retail; fleet pressure persists
EV Strategy/Profitability	Moderated EV production; near breakeven variable profit; focus on cost, chemistry, aero	LMR/LFP battery roadmap; standardization; EV inventory adjustments; warranty downtrend expected H2	Execution pivot to profitability
AI/Technology	NVIDIA collaboration; SDV progress; expand Super Cruise	Hires to lead AI; >$4B deferred software; Super Cruise scaling	Accelerating deployment
Regional Trends (China)	Restructuring and equity income recovery	Positive equity income; share gains continue	Improving
Supply Chain/Footprint	Supplier fire mitigated; buy-where-we-build principle	U.S. module/capacity shifts; $4B U.S. assembly investments (2M+ U.S. units target)	Building resilience

Management Commentary

“EBIT adjusted was $3 billion… decline was primarily driven by a net tariff impact of approximately $1.1 billion… offset by lower fixed costs, improved mix… higher warranty-related charges” — CFO Paul Jacobson .
“Chevrolet is now the number two EV brand… Cadillac became the number five EV brand overall” — CEO Mary Barra on EV momentum .
“By the end of the year, our customers will have access to more than 65,000 public fast-charging bays… 100,000 by the end of 2027” — Charging buildout .
“LMR chemistry… unique balance of energy density, charging capability, and cost efficiency… potential savings… greater than using LFP” — Battery cost roadmap .
“We resumed open market repurchases in early July” — Capital returns and flexibility .

Q&A Highlights

Tariff cadence and mitigation: Q3 net tariff expense likely higher than Q2; gross FY impact $4–$5B with ~30% mitigation via manufacturing adjustments, cost initiatives, and pricing .
EV profitability path: Focus on chemistry (LMR/LFP), lighter/aero architectures, component standardization; disciplined production aligned to demand; aim for profitability across models .
Pricing dynamics: Retail pricing stable; fleet pricing moderated amid competition; strategy continues to emphasize discipline and product strength over incentives .
Korea operations & trade: Contribution-margin positive; decisions contingent on tariff agreements; U.S. capacity provides optionality .
Buybacks: $4.3B authorization remaining at Q2 end; open market repurchases restarted; free cash flow seasonally higher in H2 .

Estimates Context

Q2 2025 vs S&P Global consensus: revenue $46.28B* vs actual $47.12B; EPS-diluted-adjusted $2.48* vs actual $2.53; both beats despite tariff and warranty headwinds .
Forward consensus (context): Q3 2025 EPS $2.32*, revenue $45.33B*; Q4 2025 EPS $2.18*, revenue $45.67B*; management signals Q3 tariffs higher than Q2 and typical seasonality in NA volumes .

Values retrieved from S&P Global*.

Key Takeaways for Investors

Q2 beat on revenue and EPS despite ~$1.1B tariff headwind; fundamentals (product strength, stable retail pricing) remain intact .
Near-term margin pressure (tariffs, warranty) likely persists into Q3; FY guide maintained with ~30% mitigation targeted and stable pricing assumptions .
Strategy pivot is clear: EV profitability focus via chemistry/aero/standardization; disciplined production to avoid discounting; software/services scale provides revenue visibility .
China is a bright spot with positive equity income and share gains; GMI EBIT improving; U.S. capacity investments add tariff resilience and ICE/EV mix flexibility .
Capital return remains active: dividend maintained; buybacks resumed; balance sheet flexibility supports execution amid policy shifts .
Trading lens: Watch Q3 tariff expense and fleet pricing trajectory; monitor warranty stabilization and EV mix; any trade relief or faster mitigation could be upside catalysts .

General Motors Co (GM)·Q2 2025 Earnings Summary