GM hoping to continue trend of growing profits, despite slowing sales: Q2 earnings preview

GM (GM) volition study second-quarter results earlier the doorbell connected Tuesday, with investors expecting the Big Three stalwart to support increasing profit, contempt less sales. 

For the quarter, GM is expected to study Q2 gross of $46.61 cardinal per Bloomberg consensus, down astir 1% from the $47.1 cardinal GM posted a twelvemonth ago. GM's adjusted net per stock is estimated astatine $3.19, with adjusted EBITDA of $5.65 billion. 

While not straight comparable, GM's adjusted EBIT successful Q2 past twelvemonth came successful astatine $3.0 cardinal — a fig weighed down heavy by tariff costs that are present easing, arsenic tariff offsets instrumentality hold.

In summation to authorities offsets that are reducing its tariff bill, GM has spent the past twelvemonth reworking its proviso chain, shifting production, and negotiating with suppliers to blunt the tariff hit. 

That allowed GM to rise its full-year 2026 guidance erstwhile it reported archetypal 4th results backmost successful April.

For the afloat year, GM expects:

• Adjusted EBIT of $13.5 billion-$15.5 cardinal

• Adjusted net per stock of $11.50-$13.50

• Adjusted automotive escaped currency travel of $9 billion-$11 cardinal

But portion tariffs easing volition assistance its fastener line, the apical enactment has been slipping.

GM sold astir 715,000 vehicles successful the US successful the 2nd quarter, a 4.2% diminution from a twelvemonth ago, though it held its presumption arsenic the country's top-selling automaker. 

The institution said overmuch of the driblet came owed to discontinued models similar the Cadillac XT4 and XT6 and the Chevrolet Malibu, and connected a crisp EV pullback pursuing the expiration of the national EV taxation credit, which pulled request guardant into precocious 2025. 

Chevy Equinox EV income fell 61.8%, the Blazer EV dropped 68.1%, and the GMC Hummer EV slid 56.8%. GM inactive gained EV marketplace share, holding the No. 2 spot down Tesla (TSLA) astatine an estimated 13.5% to 14%.

GM's trucks and large SUVs helped soften the blow. GMC Sierra income roseate 5% to 95,147, a grounds 4th for the pickup, with wide light-duty pickup income up 4%.

GM says it's connected gait to pb the full-size pickup conception for a seventh consecutive twelvemonth with stock adjacent 42%. Crossovers helped too, with the Chevy Traverse up 19.5% and the Trailblazer up 28.4%.

Crucially for margins, GM said it did each of this without discounting. Average transaction prices topped $52,400 successful the quarter, and the institution says incentives person tally beneath the manufacture mean for 3 consecutive years.

But conveyance affordability remains a occupation successful the US, with elevated rates and record-high transaction prices hitting buyers. Tighter inventories person already dented full-size SUV sales, with the Tahoe down 8.1% and the Suburban disconnected 20.4%.