GM(US:GM)2025-07-22 20:19Financial Performance - For the year ending December 31, 2025, the company expects net income attributable to stockholders to be between $7.7 billion and $9.5 billion, with EBIT-adjusted between $10.0 billion and $12.5 billion[144]. - The company experienced a net income decrease to $4.0 billion for the six months ended June 30, 2025, from $6.1 billion in the prior year[224]. - The net income attributable to stockholders for the six months ended June 30, 2025, was $1.0 billion, a decrease of $0.1 billion or 9.1% from $1.1 billion in the same period of 2024[237]. - For the four quarters ended June 30, 2025, net income attributable to stockholders was $4.8 billion, down from $11.1 billion for the same period in 2024, resulting in a return on equity (ROE) of 7.1%, compared to 15.7% in the previous year[263]. - Diluted earnings per common share for the six months ended June 30, 2025, was $5.24, a decrease of 11.2% from $5.89 in the same period of 2024[259]. Sales and Market Share - In the first half of 2025, industry sales in North America increased by 4.0% to 10.3 million units, while U.S. industry sales rose by 3.8% to 8.3 million units[148]. - The company's total vehicle sales in the U.S. reached 1.4 million units, capturing a market share of 17.3%, an increase of 1.2 percentage points compared to the same period in 2024[149]. - In China, industry sales grew by 7.5% to 12.4 million units, with the company's total vehicle sales at 0.9 million units, resulting in a market share of 7.2%[151]. - Total vehicle sales outside of China were 0.4 million units, with a market share of 3.1%, reflecting a decrease of 0.3 percentage points compared to the same period in 2024[152]. - Total vehicle sales in North America for the three months ended June 30, 2025, were 878,000 units, a 6.2% increase from 827,000 units in the same period of 2024[157]. - GM's market share in the United States increased to 17.4% for the three months ended June 30, 2025, compared to 16.7% in the same period of 2024[157]. - Total vehicle sales in China reached 448,000 units for the three months ended June 30, 2025, up from 373,000 units in the same period of 2024, resulting in a market share increase to 6.8%[157]. - The total worldwide vehicle sales for GM reached 1,539,000 units for the three months ended June 30, 2025, compared to 1,432,000 units in the same period of 2024, resulting in a market share increase to 6.8%[157]. Revenue and Expenses - Total net sales and revenue for GM decreased by 1.8% to $47.122 billion for the three months ended June 30, 2025, compared to $47.969 billion in the same period of 2024[164]. - Total net sales and revenue for the three months ended June 30, 2025, decreased by $1.239 billion, or 3.0%, to $39.486 billion compared to $40.725 billion in the same period of 2024[181]. - GM's total automotive revenue for the six months ended June 30, 2025, was $82.729 billion, a slight decrease of 0.7% from $83.272 billion in the same period of 2024[166]. - Total net sales and revenue for the six months ended June 30, 2025, decreased to $5.753 billion, a decline of 9.8% from $6.380 billion in the same period last year[188]. - Increased material and freight costs contributed $1.4 billion to the cost increase in the three months ended June 30, 2025, including $1.1 billion due to tariffs[168]. Investments and Financial Strategy - The company plans to invest approximately $10.0 billion to $11.0 billion in battery cell manufacturing joint ventures in 2025[205]. - The target average automotive cash balance is set at $18.0 billion to maintain a strong investment-grade balance sheet[205]. - The Board of Directors increased the share repurchase program capacity by $6.0 billion to a total of $6.3 billion, with an ASR program to repurchase $2.0 billion of common stock, resulting in the retirement of approximately 43 million shares[208]. - The company loaned $1.8 billion to Ultium Cells LLC at an interest rate of 5.7%, maturing in April 2030, to facilitate the prepayment of loans under the DOE's program[211]. - Total available automotive liquidity as of June 30, 2025, was $34.7 billion, down from $35.5 billion at December 31, 2024[221]. Operational Performance - The company achieved strong margins in the first half of 2025, driven by a robust product portfolio and ongoing cost discipline, despite potential impacts from evolving tariffs and policies[150]. - The company continues to focus on enhancing the competitiveness of its products in the Chinese market while executing restructuring plans, which may incur additional charges[151]. - The company highlighted the importance of delivering new products and services in response to competitive pressures and changing consumer preferences as a key strategic focus[268]. - The management cautioned that actual results may differ materially from forward-looking statements due to various risks, including market volatility and regulatory changes[271]. Tax and Interest - Income tax expense for the three months ended June 30, 2025, decreased by $286 million, or 37.3%, to $481 million compared to $767 million in the same period of 2024[177]. - The effective tax rate for the three months ended June 30, 2025, was 20.2%, with an ETR-adjusted rate of 17.9% after adjustments, compared to 21.0% and 20.9% respectively for the same period in 2024[262]. - The effective tax rate for the three and six months ended June 30, 2025, was 17.9% and 19.1%, respectively, with an expected adjusted effective tax rate between 17% and 19% for the year ending December 31, 2025[178]. - Interest income and other non-operating income, net, increased by $306 million, or not meaningful, to $366 million in the three months ended June 30, 2025, compared to $60 million in the same period of 2024[175]. Credit and Liquidity - All four credit rating agencies currently rate the company's corporate credit at investment grade, unchanged since December 31, 2024[232]. - GM Financial's total available liquidity increased to $37.0 billion as of June 30, 2025, up from $29.3 billion at December 31, 2024, representing a 26.4% increase[234]. - GM Financial's borrowing capacity on unpledged eligible assets increased to $25.7 billion as of June 30, 2025, compared to $21.5 billion at December 31, 2024, marking a 19.6% increase[234]. - GM Financial maintained liquidity to support at least six months of expected net cash flows without new debt financing, exceeding its liquidity targets as of June 30, 2025[237].