General Motors Reports Q2 2026 Results: Full Earnings Call Transcript

On Tuesday, General Motors (NYSE: GM ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. 9 billion, benefiting from higher ICE volumes and improved pricing.

The company raised its 2026 guidance for EBIT-adjusted to $14 to $16 billion, and EPS-diluted adjusted to $12 to $14, citing strong operating performance and improved pricing and warranty costs. Strategic initiatives include the launch of new vehicle models such as the Chevrolet Silverado and GMC Sierra, expansion of software and services revenue, and growth in new business segments like GM Defense and GM Insurance. S. production capacity to over 2 million units.

Management highlighted the successful restructuring of EV operations, with a significant reduction in EV-related charges, and anticipates improving EV profitability as a key driver of future growth. Full Transcript Julie, Operator Good morning and welcome to General Motors' second quarter 2026 earnings conference call. During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question-and-answer session.

We are asking analysts to limit their questions to one and a brief follow-up. To ask a question, press star then one on your telephone keypad to join the queue. To withdraw your question, press star then two. As a reminder, this conference call is being recorded Tuesday, July 21, 2026.

I would now like to turn the conference over to Ashish Khalid, GM's vice president of Investor Relations. Ashish Khalid, Vice President of Investor Relations Thanks, Julie, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the second quarter of 2026. Our conference call materials were issued this morning and are available on GM's investor relations website.

We are also broadcasting this call via webcast. Joining us today are Mary Barra, GM's chair and CEO, along with Paul Jacobson, GM's executive vice president and CFO. Today, Susan Sheffield, president and CEO of GM Financial, will also be joining us. For the Q&A portion on today's call, management will make forward-looking statements about our expectations.

These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the safe harbor statement on the first page of our presentation, as the content of this call will be governed by this language, and with that, I'm delighted to turn the call over to Mary. Mary Barra, Chair and Chief Executive Officer Thanks, Ashish, and good morning, everyone.

Today we reported another solid quarter driven by the tremendous appeal of our product portfolio, the agility of our team and disciplined execution across the business. Our employees, our dealers and our suppliers are all making important contributions that continue to drive our success. Their commitment enables us to win in a dynamic market and their efforts are leading us to raise our 2026 guidance for the second time this year. The business continues to perform very well.

Customer demand in North America remains steady, including for our pickups and SUVs, and pricing is consistent. S. full-size pickup market stands at more than 42% through the first half of the year, which is more than 10 percentage points above our closest competitor, and we grew share year over year in both the second quarter and the first half. We also achieved our best quarter and first half ever for the new Super Cruise-equipped vehicles.

S. incentive spend has remained well below the industry average for more than three years. GM International, inclusive of our China joint ventures, was also profitable. 5 points from a year ago, and we continue to strengthen our product portfolio, grow software and services revenue, lower our warranty costs, reduce EV losses, increase operating efficiency and develop new revenue opportunities that drive improved results this year and going forward.

This strategy has driven 70 basis points of total company margin expansion over the last three years, while our broader peer set has seen margin reduction by 400 basis points. All of this includes the impact of tariffs. We haven't made excuses, we've just continued to perform. At the same time, our operating discipline has been a key driver of the structural improvement in our adjusted automotive free cash flow generation, which has improved from 3 to 5 billion dollars annually on average over the last decade to consistently above $10 billion since 2022.

We expect these trends will continue to strengthen our performance into 2027 and beyond because we have multiple engines of margin expansion and growth while maintaining our capital discipline. We built a strong EBIT foundation with new and redesigned vehicles like the Chevrolet Trax, Equinox and Traverse, the revitalization of Buick, the success of sub-brands like the Denali and AT4, and icons like the Chevrolet Corvette and the Cadillac Escalade. For example, since 2020 we have increased the EBIT profitability per unit of our crossover portfolio by four times, while our full-size pickup and full-s