General Motors beats Q2 expectations

General Motors reported second-quarter profit and revenue on Tuesday that beat Wall Street’s expectations, and raised its annual profit forecast for a second time this year, buoyed by strong pricing and demand for gas-powered trucks.

The Michigan automaker is leaning heavily on its gasoline-engine offerings to fuel its profits through a slower-than-anticipated transition to electric vehicles. GM executives say it has now laid the foundation necessary to meet ambitious ramp-up targets on EVs. “We’re encouraged by the early results we’re seeing in EVs now that we can build at scale,” CFO Paul Jacobson said in a call with reporters. The company’s shares rose more than 4 per cent in premarket trading.

GM increased its adjusted pre-tax profit projection for the year to $13 billion to $15 billion, from its previous range of $12.5 billion to $14.5 billion.

The company reported adjusted earnings per share of $3.06 that beat Wall Street’s average estimate of $2.75, according to LSEG data. The carmaker reported $48 billion in revenue for the three-month period, surpassing analysts’ consensus of $45.5 billion in the June quarter.

Executives at GM also provided an update on its Cruise self-driving unit, saying it will focus its development efforts on a next-generation Chevrolet Bolt rather than its planned futuristic Origin vehicle that would not have a steering wheel or other human controls.

GM was one of the automakers affected by a cyberattack that hit auto dealerships across the US last month. The attack, which temporarily dampened sales at US dealerships, did not weaken GM’s quarterly results. Executives reported a 14 per cent increase in net income over the year-ago period to $2.9 billion.

GM’s stock has outperformed its rivals and the S&P 500 in 2024. The company’s share price has increased 38 per cent this year, while cross-town rival Ford Motor has notched an 18 per cent increase, and Jeep-maker Stellantis lost 11 per cent.