General Motors reported second-quarter results that exceeded Wall Street estimates, prompting the automaker to raise multiple financial forecasts for the full year. The Detroit-based company attributed its improved outlook to stable vehicle transaction prices, declining warranty expenses, and progress in reducing losses from its electric vehicle operations as part of a broader pullback in that segment.
The company lifted its full-year adjusted earnings before interest and taxes guidance to a range of $14 billion to $16 billion, increased from the prior range of $13.5 billion to $15.5 billion. Adjusted earnings per share guidance was raised to $12 to $14, up from the previous $11.50 to $13.50 range. Additionally, GM raised its adjusted automotive free cash flow expectations to $9.5 billion to $11.5 billion from the earlier $9 billion to $11 billion projection.
However, the company lowered its full-year net income attributable to stockholders guidance to between $8.4 billion and $9.8 billion, down from prior guidance of $9.9 billion to $11.4 billion. This marks the second consecutive quarter in which GM has reduced net income expectations while raising other key metrics. The company said this adjustment reflects various factors including prior tariff-related charges.
GM’s North American operations drove the company’s results, with an adjusted earnings before interest and taxes margin of 8.6 percent in the region, up 2.5 percentage points year-over-year. The company maintained an average vehicle transaction price of $52,000 during the quarter. Second-quarter net income attributable to stockholders declined 31.1 percent to $1.3 billion compared with the prior year, while adjusted earnings rose approximately 30 percent to more than $3.9 billion. Revenue increased 1.9 percent year-over-year. GM’s stock closed up 4.9 percent at $79.52 per share.
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