Key Takeaways:
General Motors raised its 2026 adjusted EBIT guidance to $14-$16 billion after a first half CFO Paul Jacobson called "remarkably well" performed.
"Consumer demand has remained resilient, including for trucks and SUVs," Paul Jacobson, chief financial officer at General Motors, said at a JPMorgan event.
GM reported Q2 adjusted earnings of $3.57 per share, up 41.3 percent from a year earlier and beating the consensus estimate of $3.13 by 14 percent. Revenue rose 1.9 percent to $48.03 billion, topping the $46.56 billion forecast. The automaker lifted full-year adjusted earnings guidance to $12-$14 per share from $11.50-$13.50.
The raise reflects resilient demand for trucks and SUVs and disciplined inventory and incentives, offsetting slower-than-expected EV adoption and tariff costs. GM expects second-half pressure from commodity inflation, onshoring costs and vehicle launches as it ramps a new truck platform through 2027.
Jacobson said GM is scaling back EV capacity as adoption grows more slowly than expected, with the company previously configured for about 1 million units annually. It reached an agreement with Samsung SDI on its Indiana battery plant, with the related charge already incorporated into second-half accruals. GM expects EV losses to improve in 2026 and sees 2028 as the point of more meaningful profitability through battery and architecture changes.
The automaker extended its China joint venture with SAIC, which Jacobson said is now self-funding after restructuring. New trucks begin arriving in showrooms in December, while GM converts its Orion facility from EV to internal-combustion-engine production, including Escalade output. The transition will create near-term inefficiencies as workers are hired and trained.
GM expects warranty costs to improve by about $1 billion to $1.5 billion year over year. It also announced a $4.5 billion purchasing facility led by JPMorgan and Santander to build strategic inventory against supply disruptions. EV restructuring cash costs totaled about $4.5 billion in the first half, with most of the remaining spending expected this year.
The guidance raise shows management expects truck demand to keep carrying results through the second half, even as rivals including Tesla and Dana navigate similar EV and tariff headwinds. Investors will watch GM's next earnings call for updates on EV losses and the truck platform ramp.
This article is for informational purposes only and does not constitute investment advice.
