General Motors Reports Record Revenue in Q2 2025
Highlights
- Total company revenue: $91 billion (record high)
- North America revenue: $77 billion (record for the first half)
- U.S. Dealer inventory reduced by nearly 10% YoY
- Chevrolet Equinox sales: +20% YoY
- GM's U.S. Market share: 17.3% (up 1.2 percentage points YoY)
- EBIT adjusted: $3 billion
- Total company EPS diluted adjusted: $2.53
- U.S. Incentives as a percentage of average transaction price: more than 2% below industry average
- GM International EBIT adjusted: $200 million (+$150 million YoY)
- GM Financial EBT adjusted: $700 million
- $2 billion ASR completed, retiring an additional 10 million shares
- EBIT adjusted down $1.4 billion YoY
- Adjusted automotive free cash flow down $2.5 billion YoY
- Added warranty expenses due to supplier issues
General Motors (GM) has delivered an exceptional financial performance in Q2 2025, reinforcing its strong market position despite industry challenges. Reporting a total company record revenue of $91 billion, GM saw robust demand and growth in North America, contributing to this milestone. The company's North America revenue hit a record $77 billion in the first half of the year, thanks to a disciplined approach to production levels and an excellent response to consumer trends.
GM's efforts to optimize inventory were evident as U.S. Dealer inventory levels were slashed by nearly 10% year-over-year. Additionally, GM's ongoing focus on SUV growth paid off, with Chevrolet Equinox sales rising more than 20% compared to the previous year. Market share gains were significant as well, with GM's U.S. market share at 17.3%, a 1.2 percentage point increase from the prior year.
GM's profitability, however, remained under pressure despite these highlights. The EBIT adjusted stood at $3 billion, representing a year-over-year decline of $1.4 billion due mainly to net tariff impacts and heightened warranty costs linked to early electric vehicle launches. Adjusted automotive free cash flow saw a downturn, decreasing $2.5 billion year-over-year, largely driven by tariff payments.
Despite fluctuating earnings, GM's international ventures are witnessing improved profitability with GM International's EBIT adjusted reaching $200 million, a $150 million increase year-over-year, largely thanks to substantial gains in China.
Moreover, GM Financial demonstrated its stability, delivering an EBT adjusted of $700 million, maintaining course to meet its yearly target. Meanwhile, strategic capital allocation was underscored by a completed $2 billion Accelerated Share Repurchase (ASR), retiring an additional 10 million shares, facilitating share reduction and value return to shareholders.
Overall, GM's balance of impressive sales volume, disciplined inventory management, and strategic investments poises the company well in navigating the evolving automotive landscape, despite tariff and cost headwinds challenging the profit margins.