Financial Performance - General Motors' Q2 earnings beat expectations, with revenue exceeding forecasts at $4712 billion, compared to the expected $4628 billion [1][2] - EBIT adjusted profit decreased by 31% to $304 billion from $444 billion in the previous year [2] - EBIT adjusted margin declined to 64% from 93% year-over-year, reflecting the impact of tariffs [2] - Automotive free cash flow decreased to $282 billion from $53 billion in the previous year [3] - North American EBIT profit decreased to $242 billion from $443 billion year-over-year [3] - North American margin significantly impacted, dropping to 61% from 109% in the second quarter of the previous year [3][8] Impact of Tariffs - Tariffs are significantly impacting General Motors' margins, particularly in North America [1][2][5][6][8] - General Motors anticipates a $5 billion headwind from tariffs and aims to offset a third of it through internal improvements [5][6] - The company is exploring options to mitigate the remaining tariff impact, including supplier negotiations [6] Guidance and Strategy - General Motors maintains its full-year guidance, projecting EBIT adjusted between $10 billion and $12 billion, EPS in the range of $825 to $10, and automotive free cash flow between $75 billion and $10 billion [4] - The company is adjusting production and headcount to offset some of the tariff impact [9]
GM beats earnings estimates as CEO says automaker works to ‘greatly reduce’ tariff exposure