General Motors GM reported second-quarter 2025 adjusted earnings of $2.53 per share, which surpassed the Zacks Consensus Estimate of $2.39. Higher-than-expected revenues from GM North America (GMNA), GM International’s (GMI) and GM Financial segments led to the outperformance. The bottom line, however, decreased from the year-ago quarter’s $3.06. Revenues of $47.12 billion beat the Zacks Consensus Estimate of $46.25 billion but fell from $47.97 billion recorded in the year-ago period.
The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $3.03 billion, lower than $4.43 billion in the prior-year quarter. The automaker’s share in the GM market was 8.4% in the reported quarter, up from 8.3% in the year-ago quarter.
General Motors Company Price, Consensus and EPS Surprise
General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote
Segmental Performance
GMNA generated net revenues of $39.49 billion, down from $40.72 billion recorded in the corresponding period of 2024. The figure, however, outpaced our model’s projection of $37.86 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 849,000 units, down from 903,000 units reported in the year-ago quarter. The figure, however, surpassed our estimate of 832,000 units. The segment’s adjusted EBIT totaled $2.41 billion, down from $4.43 billion recorded in the year-earlier period. The metric also missed our estimate of $3.65 billion.
GMI net revenues in the reported quarter amounted to $3.33 billion, up from the year-ago quarter’s $3.29 billion. The metric also outpaced our expectation of $2.48 billion on higher-than-expected deliveries. The segment’s wholesale vehicle sales of 125,000 units decreased from 140,000 units in the year-ago quarter but topped our forecast of 91,000 units. GMI reported an operating profit of $204 million, up from $50 million reported in the year-ago period and outpaced our estimate of $57.7 million.
GM Financial generated net revenues of $4.26 billion in the quarter, which increased from $3.92 billion recorded in the year-ago period and surpassed our prediction of $4.18 billion. The segment recorded an EBT-adjusted operating profit of $704 million, down from $822 million recorded in the year-ago period. The metric missed our prediction of $1.09 billion.
Financial Position
General Motors had cash and cash equivalents of $22.38 billion as of June 30, 2025. The long-term automotive debt at the end of the quarter was $15.48 billion. Net automotive cash provided by operating activities amounted to $4.65 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $2.83 billion in the second quarter of 2025, down from $5.3 billion generated in the year-ago quarter.
General Motors’ Zacks Rank & Key Picks
GM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Adient plc ADNT and Ferrari N.V. RACE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for ADNT’s fiscal 2025 earnings implies year-over-year growth of 1.63%. EPS estimates for fiscal 2025 and 2026 have improved 5 cents and 15 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents each in the past seven days.
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General Motors Company (GM): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis Report Adient (ADNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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