Cost control, strong North America margins, and EV progress lift General Motors in Q2 2025

Overview

General Motors delivered a solid financial performance in the second quarter of 2025, supported by resilient demand for trucks and SUVs in North America, disciplined cost management, and strong free cash flow generation. Despite a moderate decline in net income, the company reaffirmed its full-year guidance, demonstrating confidence in its EV roadmap and operational efficiency.

Mary Barra, Chair and CEO of General Motors commented: “Today, we reported another quarter of earnings that highlight the appeal of GM’s vehicles, customer loyalty to our brands, the growing value of technologies like OnStar and Super Cruise, as well as the creativity and resiliency of our global team. I’m grateful for everyone’s contributions – our employees, our dealers, and our suppliers. Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star. As we adjust to changing demand, we will prioritize our customers, brands, and a flexible manufacturing footprint, and leverage our domestic battery investments and other profit-improvement plans. Overall, GM is well positioned to succeed in an ICE market that now has a longer runway.”

Q2 2025 vs. Q2 2024:

Total revenue for the quarter was $47.12bn (-1.8% YoY), primarily driven by lower wholesale volumes across several regions, notably in North America, partially offset by strong pricing for full-size trucks and SUVs.
Net income attributable to stockholders was $1.90bn (-35.4%), largely due to increased one-time restructuring charges related to Ultium Cells realignment, Cruise integration, and global plant rationalization efforts, along with a decline in operating income.
Diluted EPS came in at $1.91, compared to $2.55 a year earlier. On an adjusted basis, EPS-diluted-adjusted was $2.53, reflecting solid underlying operating performance, excluding special items and tax effects.
EBIT-adjusted was $3.04bn (-31.6% YoY), representing a 6.4% margin, compared to a 9.3% margin in Q2 2024, mainly due to a normalization of North American profitability, restructuring expenses, and increased R&D spending on electric and autonomous vehicle programs.
GM North America (GMNA) remained the largest earnings contributor, posting EBIT-adjusted of $2.42bn, but down from $4.43 billion in Q2 2024. The margin contracted to 6.1%, from 10.9%, impacted by lower volume, higher input costs, and ongoing investment in the EV transition.
GM International (GMI) delivered $204m in EBIT-adjusted, compared to $50m a year earlier, with improved performance in South America and positive equity income from joint ventures in China, which swung from a loss of $104m in Q2 2024 to a gain of $71m in Q2 2025.
GM Financial reported EBT-adjusted was $704m (-14.4% YoY), reflecting higher funding costs and lower lease termination volumes, though credit performance remained strong.
Automotive operating cash flow for the quarter was $4.65bn (-39.7% YoY). This reflects lower operating earnings and increased working capital requirements.
Adjusted automotive free cash flow totaled $2.83bn (-46.6% YoY). The decrease was driven by higher capital expenditures and restructuring-related adjustments.
EBIT-adjusted margin for the quarter was 6.4% (down from 9.3% in Q2 2024), while net income margin was 4.0% (compared to 6.1% a year ago), highlighting the impact of temporary headwinds on profitability.
GM’s EV transition gained further traction in Q2, with approximately 47,000 electric vehicles delivered, nearly doubling YoY. The company remains on track to scale its Ultium-based offerings, expand production capacity, and drive EV profitability. GM reiterated its target of reaching 1m units of EV production capacity in North America by 2025.

General Motors reaffirmed its full-year 2025 guidance, projecting net income of $7.7bn-$9.5bn and EBIT-adjusted between $10.0bn-$12.5bn. The company expects diluted EPS of $8.22-$9.97 and adjusted EPS of $8.25-$10.00. Automotive operating cash flow is forecast at $17.0bn-$20.5bn, with adjusted free cash flow between $7.5bn-$10.0bn, reflecting continued investment in EV and battery capacity, alongside disciplined cost and capital management. GM remains focused on maintaining strong North American margins, expanding EV production toward its 1m unit annual target, and improving EV profitability. Internationally, performance is expected to stabilize, with improved results in China and steady contributions from GM Financial.

From a technical perspective, GM shares are currently trading above both the 50-day SMA and 200-day SMA, a constructive signal suggesting medium-term bullish momentum. The RSI (14) stands at 53.52, indicating neutral momentum with no immediate overbought or oversold conditions. After a recent pullback of -1.49%, the price is testing support near the key moving averages. A successful hold above the $50 level could pave the way for a potential rebound, while a break below may indicate short-term weakness or trend reversal.