GM(US:GM)2025-07-22 11:32Financial Performance Overview This section provides a comprehensive overview of General Motors' financial results for Q2 and H1 2025, alongside its reaffirmed full-year 2025 guidance Q2 & H1 2025 Financial Highlights In the second quarter of 2025, General Motors reported a 1.8% year-over-year decline in revenue to $47.1 billion and a 35.4% decrease in net income attributable to stockholders to $1.9 billion. For the first half of 2025, revenue remained relatively flat with a 0.2% increase, but net income fell by 20.9% compared to the same period in 2024. The company's full-year financial guidance remains unchanged Q2 2025 vs Q2 2024 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $47,122 M | $47,969 M | $(847) M | (1.8)% | | Net income attributable to stockholders | $1,895 M | $2,933 M | $(1,038) M | (35.4)% | | EBIT-adjusted | $3,037 M | $4,438 M | $(1,401) M | (31.6)% | | EPS-diluted | $1.91 | $2.55 | $(0.64) | (25.1)% | | EPS-diluted-adjusted | $2.53 | $3.06 | $(0.53) | (17.3)% | | Adjusted automotive free cash flow | $2,827 M | $5,297 M | $(2,470) M | (46.6)% | H1 2025 vs H1 2024 Financial Highlights | Metric | H1 2025 | H1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $91,141 M | $90,983 M | $158 M | 0.2% | | Net income attributable to stockholders | $4,680 M | $5,913 M | $(1,233) M | (20.9)% | | EBIT-adjusted | $6,527 M | $8,310 M | $(1,783) M | (21.5)% | | EPS-diluted | $5.28 | $5.10 | $0.18 | 3.5% | | EPS-diluted-adjusted | $5.31 | $5.68 | $(0.37) | (6.5)% | | Adjusted automotive free cash flow | $3,639 M | $6,388 M | $(2,749) M | (43.0)% | - GM North America (GMNA) EBIT-adjusted saw a significant decline of 45.5% in Q2 2025, falling to $2.4 billion from $4.4 billion in Q2 20244 - China equity income showed a strong recovery, turning to a profit of $71 million in Q2 2025 from a loss of $104 million in Q2 20244 Full-Year 2025 Guidance GM has reaffirmed its full-year 2025 financial guidance. The company expects Net Income to be between $7.7 billion and $9.5 billion, EBIT-adjusted between $10.0 billion and $12.5 billion, and EPS-diluted-adjusted in the range of $8.25 to $10.00. Adjusted automotive free cash flow is projected to be between $7.5 billion and $10.0 billion - The company's full-year financial guidance for 2025 remains unchanged1 Full-Year 2025 Guidance Metrics | Guidance Metric | Expected Range for FY 2025 | | :--- | :--- | | Net income attributable to stockholders | $7.7 B - $9.5 B | | EBIT-adjusted | $10.0 B - $12.5 B | | EPS-diluted-adjusted | $8.25 - $10.00 | | Adjusted automotive free cash flow | $7.5 B - $10.0 B | Consolidated Financial Statements This section presents the company's detailed consolidated income statement, balance sheet, and cash flow statement, highlighting key financial positions and operational flows Income Statement For the six months ended June 30, 2025, total net sales and revenue increased slightly to $91.1 billion from $91.0 billion year-over-year. However, operating income saw a significant decrease to $5.5 billion from $7.6 billion in the prior year, driven by higher costs of sales and operating expenses. Net income attributable to stockholders fell to $4.7 billion from $5.9 billion Income Statement Highlights (Six Months Ended) | Income Statement (Six Months Ended) | June 30, 2025 ($M) | June 30, 2024 ($M) | | :--- | :--- | :--- | | Total net sales and revenue | 91,141 | 90,983 | | Total costs and expenses | 85,662 | 83,372 | | Operating income (loss) | 5,479 | 7,611 | | Net income attributable to stockholders | 4,680 | 5,913 | - The Automotive segment's operating income for H1 2025 was $4.4 billion, a notable decrease from $7.8 billion in H1 202415 - The Cruise segment recorded an operating loss of $273 million in H1 2025, a significant improvement from the $1.65 billion loss in H1 202415 Earnings Per Share (EPS) For the six months ended June 30, 2025, diluted EPS increased to $5.28 from $5.10 year-over-year. This was influenced by a $593 million positive adjustment from the redemption of Cruise preferred shares. The weighted-average diluted common shares outstanding decreased to 989 million from 1,155 million, which also contributed to the higher EPS Earnings Per Share (Six Months Ended) | Earnings Per Share (Six Months Ended) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Basic EPS | $5.35 | $5.14 | | Diluted EPS | $5.28 | $5.10 | | Weighted-average common shares outstanding – diluted (M) | 976 | 1,147 | - The H1 2025 EPS calculation includes a $593 million return from preferred shareholders related to the redemption of Cruise preferred shares, which positively impacted net income attributable to common stockholders16 Balance Sheet As of June 30, 2025, GM's total assets stood at $289.4 billion, an increase from $279.8 billion at year-end 2024. Total liabilities also grew to $220.9 billion from $214.2 billion. Total stockholders' equity increased to $66.4 billion, primarily due to a rise in retained earnings Balance Sheet Highlights | Balance Sheet Highlights ($M) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 114,285 | 108,545 | | Total Assets | 289,384 | 279,761 | | Total Current Liabilities | 93,812 | 96,265 | | Total Liabilities | 220,925 | 214,171 | | Total Stockholders' Equity | 66,363 | 63,072 | Cash Flow Statement For the first six months of 2025, net cash from operating activities was $13.0 billion, a significant increase from $9.1 billion in the prior year period. Net cash used in investing activities was $11.2 billion, while financing activities provided a net cash inflow of $0.7 billion. The company's cash and cash equivalents at the end of the period stood at $25.8 billion Cash Flow Highlights (Six Months Ended) | Cash Flow (Six Months Ended, $M) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | 12,969 | 9,128 | | Net cash used in investing activities | (11,158) | (8,987) | | Net cash provided by financing activities | 699 | 3,793 | | Net increase in cash | 2,836 | 3,702 | - Automotive operating cash flow for H1 2025 was $7.1 billion, down from $11.3 billion in H1 202423 - The company spent $2.0 billion to purchase common stock in H1 2025, compared to $1.3 billion in H1 202424 Segment Performance and Operational Metrics This section details the financial performance of GM's key operating segments and provides insights into vehicle sales volumes, market share, and production efficiency Key Financials by Segment In Q2 2025, GM North America (GMNA) generated $39.5 billion in revenue, a decrease from $40.7 billion YoY. GM International (GMI) revenue was stable at $3.3 billion. A key highlight was the turnaround in Automotive China JVs' equity income, which was a profit of $71 million compared to a loss of $104 million in Q2 2024 Net Sales and Revenue by Segment | Net Sales and Revenue ($M) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GMNA | 39,486 | 40,725 | | GMI | 3,326 | 3,298 | | Cruise | — | 25 | | GM Financial | 4,255 | 3,918 | - Equity income from Automotive China JVs was $71 million in Q2 2025, a significant improvement from a loss of $104 million in Q2 202428 - Equity earnings from the Ultium Cells Holdings LLC joint venture were $11 million in Q2 2025, down substantially from $324 million in Q2 202429 Vehicle Sales Volume GM's global wholesale vehicle sales declined in Q2 2025 to 974,000 units from 1,043,000 units in Q2 2024. The decrease was seen in both the GMNA and GMI segments. For the first half of the year, total wholesale volume was 1.885 million units, down from 1.938 million in the prior year Wholesale Vehicle Sales | Wholesale Vehicle Sales (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | GMNA | 849 | 903 | 1,676 | 1,695 | | GMI | 125 | 140 | 209 | 243 | | Total | 974 | 1,043 | 1,885 | 1,938 | Market Share and Fleet Sales In Q2 2025, GM's total worldwide market share improved to 6.8% from 6.6% YoY. The company saw market share gains in key regions, with U.S. share rising to 17.4% and China share increasing to 6.8%. Total fleet sales constituted 17.8% of total vehicle sales, a slight decrease from 19.3% in Q2 2024, while North American production capacity utilization increased to 117.6% Market Share | Market Share | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | United States | 17.4% | 16.7% | | China | 6.8% | 6.3% | | Total Worldwide | 6.8% | 6.6% | - Total fleet sales were 274,000 units in Q2 2025, representing 17.8% of total vehicle sales, down from 19.3% in Q2 202454 - North America two-shift capacity utilization increased to 117.6% in Q2 2025 from 108.1% in Q2 2024, indicating strong production levels54 Non-GAAP Financial Measures & Reconciliations This section provides reconciliations of non-GAAP financial measures, including EBIT-adjusted, EPS-diluted-adjusted, and adjusted automotive free cash flow, to their most comparable GAAP measures Reconciliation of Net Income to EBIT-adjusted GM's Q2 2025 EBIT-adjusted was $3.0 billion, reconciled from a net income of $1.9 billion. Significant adjustments included adding back $481 million in income tax expense and $663 million in special charges. These charges were primarily related to Ultium strategic realignment ($330M), China restructuring ($140M), and Cruise restructuring ($65M) Reconciliation to EBIT-adjusted | Reconciliation to EBIT-adjusted ($M) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income attributable to stockholders | 1,895 | 2,933 | | Add: Income tax expense | 481 | 767 | | Add: Total adjustments | 663 | 761 | | EBIT-adjusted | 3,037 | 4,438 | - Key adjustments in Q2 2025 impacting EBIT-adjusted include: - Ultium strategic realignment: $330 million3940 - China restructuring actions: $140 million3940 - Cruise restructuring: $65 million3940 Reconciliation of EPS to EPS-diluted-adjusted Q2 2025 EPS-diluted-adjusted was $2.53, compared to a GAAP diluted EPS of $1.91. The $0.62 per share difference is primarily due to adding back $0.68 per share for restructuring and other adjustments, partially offset by a $0.07 per share tax effect on these adjustments Reconciliation to EPS-diluted-adjusted | Reconciliation to EPS-diluted-adjusted | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted earnings per common share | $1.91 | $2.55 | | Adjustments (per share) | $0.68 | $0.66 | | Tax effect on adjustments (per share) | ($0.07) | ($0.15) | | EPS-diluted-adjusted | $2.53 | $3.06 | Reconciliation of Automotive Operating Cash Flow to Adjusted Automotive Free Cash Flow Adjusted automotive free cash flow for Q2 2025 was $2.8 billion, a significant decrease from $5.3 billion in Q2 2024. This was calculated from $4.7 billion in net automotive operating cash flow, less $2.1 billion in capital expenditures, and adjusted for items such as the Buick dealer strategy and restructuring actions Adjusted Automotive Free Cash Flow | Adjusted Automotive FCF ($M) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net automotive cash provided by operating activities | 4,653 | 7,713 | | Less: Capital expenditures | (2,131) | (2,539) | | Add/Less: Adjustments | 318 | 123 | | Adjusted automotive free cash flow | 2,827 | 5,297 | Return on Equity (ROE) and Return on Invested Capital (ROIC)-adjusted For the trailing four quarters ending June 30, 2025, GM's Return on Equity (ROE) was 7.1%, a sharp decline from 15.7% in the prior-year period, reflecting lower net income. In contrast, Return on Invested Capital (ROIC)-adjusted improved slightly to 19.0% from 18.5%, indicating efficient capital allocation despite lower earnings Return Metrics (Trailing Four Quarters) | Return Metric (Trailing Four Quarters) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | ROE | 7.1% | 15.7% | | ROIC-adjusted | 19.0% | 18.5% |