01—Abstract
Summary
Summary of the 10-Q filed July 22, 2025. Cited figures are marked; the original filing is the authoritative source.
General Motors Co. (GM) reported its financial results for the quarter ending June 30, 2025.
The company generated total net sales and revenue of $47.12 billiona, a slight decrease from $47.97 billion in the prior-year period. Net income attributable to stockholders for the quarter was $1.895 billion, down from $2.933 billion in the second quarter of 2024. Diluted earnings per common share stood at $1.91, compared to $2.55 in the same period last year.
GM Financial, the company's financing arm, saw an increase in revenue to $4.25 billionb from $3.91 billion year-over-year, driven by growth in its portfolio and higher interest rates. However, its adjusted earnings before income taxes (EBT-adjusted) declined by 14.4% to $704 million, primarily due to an increased provision for loan losses and higher interest expenses.
The company highlighted ongoing investments in Electric Vehicles (EVs) and autonomous driving technology, while also focusing on maintaining profitability from its strong portfolio of trucks and SUVs. Management also noted the evolving tariff environment and its potential impact on profitability, estimating a $4.0 billion to $5.0 billionc impact on EBIT-adjusted for the full year 2025.
02—Key points
Key Highlights
- Total net sales and revenue for Q2 2025 were $47.12 billion, down 1.8% year-over-year.
- Net income attributable to stockholders decreased to $1.895 billion in Q2 2025 from $2.933 billion in Q2 2024.
- Diluted earnings per share (EPS) for Q2 2025 were $1.91, a decrease from $2.55 in the prior-year period.
- GM Financial revenue increased by 8.6% to $4.25 billion, but its EBT-adjusted declined by 14.4% to $704 million.
- Total automotive costs and expenses increased by 2.0% to $44.995 billion, driven by higher material and freight costs, and unfavorable inventory adjustments.
- The company's outlook for the full year 2025 anticipates net income attributable to stockholders between $7.7 billion and $9.5 billion, and EBIT-adjusted between $10.0 billion and $12.5 billion.
- GM continues to invest in EVs and autonomous driving, while also managing the impact of tariffs, which are expected to affect 2025 EBIT-adjusted by $4.0 billion to $5.0 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 22, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $47.12B$47.97B | −1.8% |
| Operating Expenses | $44.99B$44.10B | +2.0% |
| Operating Income | $2.13B$3.87B | −45.1% |
| Net Income | $1.90B$2.88B | −34.1% |
| EPS (Basic) | $1.94$2.57 | −24.5% |
| EPS (Diluted) | $1.91$2.55 | −25.1% |
| Shares Outstanding (Basic) | 963.00M1.14B | −15.2% |
| Shares Outstanding (Diluted) | 976.00M1.15B | −14.9% |
05—Questions
Frequently Asked Questions
What were the key drivers of the decrease in net income for the quarter?
The decrease in net income was primarily driven by higher automotive costs and expenses, which rose to $44.995 billion from $44.096 billion in the prior-year period. This increase was attributed to higher material and freight costs, unfavorable net realizable value inventory adjustments (primarily EV-related), and increased warranty-related costs. Additionally, a decrease in operating income to $2.127 billion from $3.873 billion also contributed to the lower net income.
How is GM Financial performing, and what are the key factors affecting its results?
GM Financial's revenue increased by 8.6% to $4.25 billion, benefiting from portfolio growth and higher interest rates on new originations. However, its adjusted earnings before income taxes (EBT-adjusted) decreased by 14.4% to $704 million. This decline was mainly due to an increased provision for loan losses, higher interest expenses resulting from increased debt and rates, and increased leased vehicle expenses. Despite the decrease in EBT-adjusted, GM Financial's liquidity position remains strong.
What is General Motors' outlook for the remainder of 2025, and what are the main uncertainties?
General Motors expects net income attributable to stockholders between $7.7 billion and $9.5 billion and adjusted EBIT between $10.0 billion and $12.5 billion for the full year 2025. Key uncertainties include the evolving tariff environment, which is expected to impact 2025 EBIT-adjusted by $4.0 billion to $5.0 billion, supply chain availability, consumer demand trends, interest rates, and regulatory changes. The company also noted a new auto loan interest deductibility provision in recent legislation that could materially affect EV profitability.
What is the status of GM's investment in EVs and autonomous driving, and how is Cruise being managed?
GM continues to invest in EVs and has combined GM and Cruise's technical efforts to advance personal autonomous vehicles, shifting away from robotaxi development. While the company announced plans to no longer fund Cruise's robotaxi development, it incurred charges related to the wind-down of these operations. The company's focus is on building scale in its EV portfolio to improve profitability and developing advanced driver-assistance systems (ADAS).
06—Continue