- General Motors‘ adjusted earnings per share (EPS) for the second quarter were $2.53, surpassing the expected $2.33 but lower compared to $3.06 from the previous year.
- Total net sales and revenue amounted to $47.12 billion, slightly beating the estimate of $46.25 billion, but down 1.8% year-over-year.
- Automotive net sales and revenue totaled $42.87 billion, which is 2.7% less than last year, compared to an estimated $42.52 billion.
- Adjusted earnings before interest and taxes (Ebit) were down 32% year-over-year at $3.04 billion, yet it exceeded the estimated $2.86 billion.
- Adjusted automotive free cash flow reached $2.83 billion, showing a 47% reduction from the previous year and falling short of the forecasted $3.01 billion.
- Vehicle sales were recorded at 974,000 units, a decline of 6.6% year-over-year, compared to an expected 998,970 units.
- In North America, GM vehicle sales stood at 849,000 units, down 6% year-over-year, slightly below the estimated 865,089 units.
- Global Markets (GMI) vehicle sales reached 125,000 units, representing an 11% drop year-over-year, just shy of the 127,611 estimate.
- For the full year, GM maintains its forecast of adjusted EPS between $8.25 and $10, in line with the $9.37 estimate.
- GM’s adjusted Ebit forecast remains set at $10 billion to $12.5 billion, with an estimated midpoint at $11.37 billion.
- Adjusted automotive free cash flow is expected to be between $7.5 billion and $10 billion for the full year.
- The company expressed confidence in the long-term profitability of electric vehicle (EV) production despite a slowdown in the industry, noting growth in U.S. market share and year-over-year sales.
- GM has maintained its position as the #2 EV seller in the U.S.
- The gross tariff impact for 2025 remains unchanged at $4 billion to $5 billion, with a net impact of $1.1 billion noted in the second quarter.
- The company anticipates a higher net tariff impact in the third quarter due to timing factors, and expects to mitigate at least 30% of these costs through various initiatives.
General Motors on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely covering General Motors‘ latest developments. In their report “General Motors (GM): Expansion in Electric Vehicle Production,” Baptista Research notes GM’s first-quarter 2025 financial results, highlighting a complex environment with revenue reaching $44 billion and adjusted EBIT of $3.5 billion. Despite achieving $2.78 in adjusted diluted EPS, GM faced slightly lower EBIT-adjusted margins at 7.9% compared to the previous year.
Another insightful report by Baptista Research, “General Motors vs. The Tariff Tsunami: Can The Auto Giant Stay In Gear?,” focuses on the challenges GM faces in 2025 due to trade tensions between the U.S. and Canada. The suspension of production at its BrightDrop electric vehicle plant in Ingersoll, Ontario, resulting in layoffs, is a notable setback. This move comes amidst the aftermath of the 25% tariffs on foreign-made cars, impacting the auto sector in both countries.
A look at General Motors Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Motors Co. manufactures and markets new cars and trucks globally. The company provides a range of features for drivers with special needs, as well as services including OnStar vehicle protection, maintenance, XM satellite radio, and options for commercial owners. With a Smartkarma Smart Score of 5 for Value, General Motors is deemed to have a strong value proposition, indicating favorable investment potential based on its current market value and financial health.
Additionally, while General Motors received a lower score of 2 for Dividend and Resilience, its scores for Growth and Momentum stand at 3 and 4 respectively. This suggests that the company may have opportunities for growth in the future and is currently exhibiting positive momentum in the market. Taking these factors into consideration, General Motors‘ long-term outlook appears promising, supported by its solid value proposition and potential for growth in the global automotive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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