General Motors (GM) just reported quarterly earnings that blew the roof off estimates. The company reported an adjusted earnings per share of $2.53, above the expected $2.44. The automaker posted second-quarter revenue of $47.12 billion, above the expected $46.28 billion. GM’s net income attributable to common stockholders was $1.9 billion. This is just the beginning of a dramatic 35.4% drop from last year’s revenue of $2.93 billion.
The direct care provider has been increasingly hurt, especially by President Trump’s auto tariffs, leading it to cut its full-year guidance in May. GM estimated a $4 billion to $5 billion hit from these tariffs. While the automaker doubled down on its guidance during the earnings call, the tariff impact is still pegged at an estimated.
During a presentation at the WSJ’s Future of Everything 2025 event, CEO Mary Barra highlighted GM’s ongoing efforts to mitigate tariff exposure. She focused on the company’s commitment to modifying its approach to production in light of economic headwinds.
Consequently, GM had a modest revenue drop in their second quarter. Sales decreased 1.8%, to $47.97 billion from a year earlier. The adjusted earnings per share were down 17%, down from $3.06 in the third quarter of last year. Despite these setbacks, GM’s electric vehicle (EV) sales totaled 46,300 units for the quarter, reflecting the company’s push towards electrification.
GM is moving in a very big way to meet new market demands and tariff pressures. The company recently rolled out plans to move production of a gas-powered SUV while expanding pickup truck building capacity in Michigan. The automaker is investing $4 billion across multiple American plants. This investment will focus on relocating or increasing production of two models currently produced in Mexico to U.S. facilities.
The cut to full-year guidance is substantial. GM lowered its estimate for adjusted earnings before interest and taxes from an original estimate of $13.7 billion to $15.7 billion in January to $10 billion to $12.5 billion now. This change makes up for the continued pressures that still exist from the continued impacts of tariffs and market forces.
Following the announcement of its earnings report, GM’s stock plummeted nearly 2% in premarket trading. This decrease tells a story of the significantly increased investor concern over tariff exposure and overall changing market conditions.