Dive Brief:
- General Motors, in its Q2 earnings released Tuesday, reported net revenue of $48 billion for the second quarter of 2026, up from $43.6 billion in Q1 and by $900,000 from the same period last year.
- The company’s Q2 operating profit slipped from $4.3 billion to $3.9 billion, with its margins falling from 9.7% in Q1 to 8.2%. The automaker cited $2.3 billion in charges in Q2 related to the ongoing realignment of its electric vehicle business for the declines.
- GM’s Q2 sales totaled 714,896 vehicles, down 4%. The company said it reflected a smaller EV market, discontinued vehicles and some inventory constraints during the quarter. Still, as a result of its Q2 performance, GM updated its full-year guidance to an adjusted EBIT of between $14-$16 billion, up from $13.5-$15.5 billion previously.
Dive Insight:
GM also cited cost pressures tied to inflation and manufacturing expenses related to onshoring more production to the U.S. for the decline in margins in Q2. However, the company’s margins are still within its target range of 8%-10% in 2026, which is being aided by strong sales of profitable trucks and SUVs.
“We are winning in the segments that matter most, including full-size trucks and SUVs, while maintaining disciplined pricing and inventory levels,” GM CFO Paul Jacobson said on Tuesday’s earnings call with analysts.
Jacobson said GM’s fleet sales in the first half of 2026 were the highest in more than five years, along with the highest government sales since 2009 and record full-size pickup sales in Q2 driven by strong commercial demand.
“The business continues to perform very well,” said GM Chair and CEO Mary Barra on the earnings call. “Customer demand in North America remains steady, including for our pickups and SUVs and pricing is consistent.”
Barra noted GM’s share of the U.S. full-size pickup market stands at more than 42% through the first half of 2026, which she said is over 10 percentage points above its closest competitor.
Looking ahead, Jacobson said GM is working to recover from its costly shift away from EVs and expects that the losses to improve by $1 billion to $1.5 billion for the full year.
In 2025, GM posted a 55% YoY decline in net income, which was primarily the result of electric vehicle-related charges last year, including $6 billion alone in Q4. GM’s total EV-related charges last year were over $7 billion, which significantly impacted its profits. But Jacobson said the company is working to recover from the multibillion-dollar losses of 2025.
“Our teams have worked tirelessly with our partners and suppliers across the EV value chain to conclude these negotiations quickly,” Jacobson said on the call. “I'm proud to say that we believe these actions substantially complete the material cash charges we expect to incur as we align our EV capacity and manufacturing footprint with the changes in regulatory policy.”
Jacobson added that the investments GM is currently making to onshore production, launch new vehicles and expand full-size SUV capacity will position the company to further grow revenue, gain market share and improve its profitability in 2027.
GM’s next major launch is the redesigned Chevrolet Silverado and GMC Sierra light-duty pickups, which will begin arriving in dealer showrooms in December. Barra said on the earnings call that GM “significantly elevated the exterior and interior design to increase their presence, refinement and appeal.” She added that GM plans to maintain record production volumes year-over-year.
GM last June announced a $4 billion investment in three U.S. plants and said it would shift its Orion Assembly plant near Detroit toward production of full-size ICE trucks and SUVs, starting in early 2027.
