General Motors Company Q2 FY2025 earnings call

• Core strengths include vehicle appeal, customer loyalty, technologies like OnStar and Super Cruise, and global team resilience.
• In China, working with JV partner to improve sales, inventory, costs, and profitability; new energy vehicles saw second consecutive quarter of year-over-year sales growth.
• In the US, GM outperformed market in share, had lower inventories, incentives below industry average, and crossover portfolio delivered strong results.
• EV business growing with Chevrolet as number 2 EV brand and Cadillac as luxury EV leader; Super Cruise and OnStar subscriber totals increasing, deferred revenue from software services at $4 billion.
• Invested in US manufacturing footprint, battery, software, and autonomous technology; introduced new loyalty program and credit card portfolio; recruited new executives and embraced AI.

Total company revenue in the first half was a record $91 billion. North America revenue in the first half was nearly $77 billion, up slightly year over year. GM Financial had EBT adjusted of $700 million in Q2 and is on track for full-year EBT adjusted between $2.5 billion and $3 billion. GM International had second quarter EBIT adjusted of $200 million, a year-over-year increase of $150 million driven by improved profitability from China equity income.

EBIT adjusted is expected to be in the $10 billion to $12.5 billion range, EPS diluted adjusted in the $8.25 to $10 per share range, and adjusted automotive free cash flow in the $7.5 billion to $10 billion range. Second half EBIT adjusted is expected to be about $1.75 billion lower than first half due to additional net tariff impact, lower North America wholesale volumes, and increased spending for next-generation full-size trucks.

• Uncertainty regarding tariff impact.
• Potential losses on EV inventory due to market adjustments.
• Quality issues leading to higher warranty costs.

Q: Mike Ward asks about the accounting for the $600 million related to EVs.

A: Paul Jacobson explains it's a lower of cost or market adjustment related to marking potential losses on EV inventory.

Q: Dan Levy asks about pricing dynamics and EV strategy.

A: Mary Barra and Paul Jacobson discuss fleet pricing normalization, EV portfolio coverage, and efforts to improve EV profitability.

Q: Ryan Brinkman asks about tariff impact mitigation.

A: Paul Jacobson talks about trade deal impacts and future tariff mitigation potential.

Q: Joe Spak asks about tariff and EV credit comments.

A: Paul Jacobson and Mary Barra discuss tariff expense tracking and EV credit compliance.

Q: Eytan McKelley asks about guidance and inventory.

A: Paul Jacobson talks about guidance range and inventory target.

Q: Adam Jonas asks about robotics and EV profitability.

A: Mary Barra and Paul Jacobson discuss GM's robotics efforts and EV profitability differentiation.

Q: Tom Narayan asks about Korea operation and international markets.

A: Mary Barra talks about Korea operation evaluation and international market opportunities.

Q: Emmanuel Rosner asks about share buyback and CapEx.

A: Paul Jacobson discusses share buyback progress and CapEx composition.