Detroit automaker General Motors (GM) has reported second-quarter financial results that beat Wall Street estimates and reaffirmed its full-year guidance.
The company has announced earnings per share (EPS) of $2.53 U.S., which was ahead of the $2.44 U.S. expected among analysts. The profit was down 17% from a year ago.
Revenue in the period totaled $47.12 billion U.S., which surpassed the $46.28 billion U.S. anticipated on Wall Street. Sales declined 1.8% year-over-year.
Management at GM, as the company is known, said they managed to produce the results despite ongoing uncertainty caused by U.S. President Donald Trump’s tariffs.
Despite hopes for some relief, President Trump’s 25% import duties on motor vehicles and many automotive parts remain in effect.
GM Chief Executive Officer (CEO) Mary Barra said in the company’s earnings statement that the automaker is working to “greatly reduce our tariff exposure.”
The positive results from General Motors come a day after rival automaker Stellantis (STLA) warned of a $2.7 billion U.S. loss due to the vehicle tariffs.
While GM reaffirmed its full-year guidance, the company in May lowered its full-year outlook to include a possible $4 billion U.S. to $5 billion U.S. impact from the tariffs.
The current full-year guidance includes earnings of between $10 billion U.S. and $12.5 billion U.S., down from earlier guidance of $13.7 billion U.S. to $15.7 billion U.S.
Still, the Detroit-based company said it is making progress toward mitigating at least 30% of its expected cost increases due to tariffs through manufacturing adjustments and cost initiatives.
It noted that the second half of the year will be more exposed to tariffs since it will have two quarters subject to Trump’s tariffs, while the first six months of the year only had one quarter.
Despite beating Wall Street forecasts, GM’s profit and sales were down year-over-year for the first time since the fourth quarter of 2023.
The company’s sales decline was its biggest year-over-year drop since the fourth and final quarter of 2021 amidst the Covid-19 pandemic.
GM reported 974,000 vehicle sales in Q2, less than the one million estimated by analysts.
Last month, General Motors announced it will invest $4 billion U.S. in several American plants, including moving or increasing production of two Mexican-produced vehicles to the U.S.
GM stock has risen 4% this year to trade at $53.21 U.S. per share.
