GM Expected to Post Higher 2Q Profit, Despite Decline in Quarterly Sales

Dow Jones
Jul 20
 

General Motors is set to report second-quarter results before the market opens Tuesday. Here is what you need to know.

 

PROFIT: The automaker is projected to post a profit of $2.66 billion, up from $1.87 billion in the same quarter last year, according to analysts polled by FactSet.

 

ADJUSTED EARNINGS: Stripping out one-time costs, earnings are forecast to come in at $3.19 a share. That compares with adjusted earnings of $2.53 a share a year earlier.

 

REVENUE: Quarterly revenue is expected to be $47.01 billion, just below the $47.12 billion GM logged last year.

 

GM's stock has fallen 5.3% over the past three months and was recently changing hands at $76.24.

 

WHAT TO WATCH

--GM's sales in volume terms fell in the second quarter, down 4.2% to about 715,000 vehicles, hurt by a smaller electric-vehicle market, discontinued vehicles and some inventory constraints. Despite the decrease, North American President Duncan Aldred said GM's business continues to perform well, as customer demand has remained resilient, especially for trucks and sport-utility vehicles. Investors will be looking to see how lower sales volumes affect GM's second-quarter financials.

--GM said it will collaborate with Lockheed Martin and make parts for the defense contractor's weapons. The partnership comes as stockpiles have dropped because of the wars in Ukraine and Iran, and as the Trump administration and Pentagon officials have pressed weapons makers to accelerate production with the help of other manufacturers. GM and Lockheed executives said last month when the collaboration was announced that it was too soon to discuss details, so investors will be looking for updates on the collaboration.

--Between GM and Ford, BNP Paribas analyst James Picariello has a strong preference for GM, in part citing the company's reliable operational and market-share track record. Picariello expects GM's second-quarter results to be largely in line with Wall Street estimates, supported by strong cost execution and tariff relief, he said in a research note. The company is likely to modestly raise its full-year outlook amid lower commodity prices and resilient North American demand, Picariello added.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

July 20, 2026 11:38 ET (15:38 GMT)

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