GM Raises Full-Year Outlook After Q2 Profit Jumps 30% on Truck Sales

General Motors Co. on Tuesday raised its full-year earnings forecast after strong demand for its profitable trucks and SUVs drove a 30% increase in second-quarter core profit. The automaker surpassed Wall Street estimates despite facing a challenging economic environment of persistent inflation and rising supply costs.

Earnings Beat and Outlook

The Detroit-based automaker reported quarterly earnings before interest and taxes (EBIT) of $3.9 billion, a significant increase from approximately $3 billion in the same period a year earlier. The performance was driven by solid pricing and sales in its crucial North American market.

Key second-quarter financial results include:

• Adjusted Earnings Per Share: $3.57, topping the analyst consensus of $3.20, according to LSEG data.
• Revenue: $48 billion, an increase of 2% year-over-year.
• Net Income: Dropped 31% to $1.3 billion, primarily due to $2.3 billion in costs associated with restructuring its electric-vehicle factory footprint.

Buoyed by the strong quarter, GM lifted its full-year 2026 profit outlook by $500 million to a new range of $14 billion to $16 billion. This marks the second such increase this year.

North American Strength Offsets Headwinds

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GM's results highlight the continued profitability of its traditional vehicle lineup, even as it invests heavily in its transition to electric vehicles. The company's North American profit margin improved to 8.6% from 6.1% a year earlier, despite a 4% decline in the region's quarterly sales.

However, the company cautioned that its bottom line continues to be affected by external pressures. GM maintained its forecast for a $2.5 billion to $3.5 billion negative impact from tariffs and said it expects inflation in raw materials, computer chips, and logistics to reduce earnings by $1.5 billion to $2 billion this year.

International Performance

Outside of its home market, GM's performance was mixed. In China, where the company is undergoing a restructuring, it reported equity income of $83 million, up from $71 million a year ago.

Its broader international business, excluding China, posted a core profit of $190 million, representing a 7% decline from the prior year.