GM lifts outlook after strong Q2

General Motors (GM) delivered a stronger-than-expected second quarter, posting adjusted earnings per share of $3.57 on revenue of about $48.03 billion. Both figures topped Wall Street expectations, reflecting solid demand for the automaker’s vehicles. Management described the company’s momentum as palpable as it updated key elements of its full-year outlook.

The company reported that its average vehicle transaction price during the quarter was $52,000. It cited consistent vehicle pricing, particularly on higher-priced models, as an important factor supporting revenue and profitability. North America remained the primary profit driver, underpinned by demand for pickups and large SUVs.

GM achieved an 8.6% EBIT-adjusted margin in North America in the quarter, an improvement of 2.5 percentage points from a year earlier. Executives linked this margin expansion to lower warranty costs, narrowing losses in the electric-vehicle business, and ongoing efforts to increase operating efficiency.

Pricing strength in pickups and large SUVs further supported profitability in the region. Management emphasized that these vehicles continue to anchor the company’s financial performance as it works to improve efficiency across the business.

On the back of the stronger quarter, GM raised its full-year adjusted EBIT guidance to a range of $14 billion to $16 billion. This updated range reflects increased confidence in earnings power for the remainder of the year. The automaker also lifted its outlook for adjusted automotive free cash flow to a range of $9.5 billion to $11.5 billion.

While operating guidance improved, GM trimmed its forecast for net income attributable to stockholders to a range of $8.4 billion to $9.8 billion. The shift underscores the distinction between core operating metrics such as adjusted EBIT and free cash flow, and bottom-line net income after all charges.

GM said it has substantially completed the material charges tied to its pullback in all-electric vehicles. Cumulative EV-related charges reached $10.9 billion since late last year. With those charges largely recorded, the company expects less drag from these items on future reported results.

Management noted that narrowing EV losses contributed to the better quarterly performance and the higher full-year guidance. As these costs become more contained, GM is focusing on maintaining pricing discipline, reducing warranty costs and further enhancing operating efficiency.