General Motors NYSE:GM rose 0.27% premarket after reporting second-quarter adjusted earnings of $3.57 a share on revenue of $48.03 billion, ahead of the $3.20 and $47.01 billion analysts expected. EBIT-adjusted climbed 30% to $3.9 billion and adjusted automotive free cash flow nearly doubled to $5.0 billion. The GAAP picture is a bit different. Net income attributable to stockholders fell 31% to $1.3 billion and diluted EPS dropped to $1.41 from $1.91, weighed down by $2.3 billion of charges tied to its EV capacity and manufacturing footprint.
CEO Mary Barra said the North America region's EBIT-adjusted margin hit 8.6%, up 2.5 points from a year earlier, on lower warranty costs, smaller EV losses and better operating efficiency. GM International, including the China joint ventures, was profitable. Barra pointed to consistent pricing, a "very attractive lineup" of pickups and SUVs, and the best quarter yet for new Super Cruise-equipped vehicles. She flagged the next-generation Chevrolet Silverado LD and GMC Sierra LD launching in December, as well as onshoring production to reduce tariff exposure.
Looking forward, the automaker lifted full-year adjusted EBIT guidance to $14 billion to $16 billion, its second raise this year, and pushed adjusted automotive free cash flow guidance to $9.5 billion to $11.5 billion. GM cut its forecast for net income attributable to stockholders to $8.4 billion to $9.8 billion, from $9.9 billion to $11.4 billion, the second straight quarter it has trimmed that figure. Expected adjustments for the year tripled to $3.5 billion from $1.0 billion, driven by the EV writedowns.