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General Motors raised its full-year earnings outlook and said customer demand has remained strong, particularly for vehicles such as pickup trucks and SUVs.
Sales of these larger, pricer models during the recent quarter helped drive revenue higher, even as the Detroit company sold fewer total vehicles.
Shares rose 3.8%, to $78.69 on Tuesday. Despite the gain, the stock remains off by about 3% since the beginning of the year.
Global deliveries fell 7.2% to about 1.43 million vehicles during the period, hurt in part by GM having discontinued some of its smaller, less-profitable models in recent years. The company is also facing a significantly smaller electric-vehicle market, Chief Financial Officer Paul Jacobson said on a call with analysts.
GM has spent the past few years restructuring its EV unit, working to align its production capacity and manufacturing footprint with cooling demand and recent changes in regulatory policy.
GM recorded $2.3 billion in incremental charges tied to its EV restructuring during the latest quarter, bringing its total to $10.9 billion worth of EV-related charges since the second half of 2025, Jacobson said.
“Our teams have worked tirelessly with our partners and suppliers across the EV value chain to conclude these negotiations quickly,” he said. “I’m proud to say that we believe these actions substantially complete the material cash charges we expect to incur.”
Looking ahead, GM said it will focus more of its investments on domestic manufacturing and defense. The company this year plans to spend up to $1.5 billion, increasing its U.S. production capacity to more than 2 million units in 2027 and further reducing tariff exposure.
At the same time, GM is working to scale its defense unit. The company is vying for military and defense contracts, as well as working with companies such as Lockheed Martin to support the broader industry.
“We’re focusing our efforts on strengthening supply chain management, improving manufacturing readiness, and expanding production capacity in ways that serve the United States and its allies,” Chief Executive Mary Barra said.
The effort comes as weapons 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 now expects its full-year earnings before interest and taxes to come in between $14 billion and $16 billion, up from a prior outlook of $13.5 billion to $15.5 billion. And adjusted earnings are now projected to be between $12 and $14 a share, compared with a previous forecast of $11.50 to $13.50 a share.
The new outlook came as GM posted net income of $1.31 billion, or $1.41 a share, in the second quarter, compared with $1.9 billion, or $1.91 a share, a year earlier.
Stripping out one-time items, earnings came in at $3.57 a share. Analysts polled by FactSet had expected adjusted earnings of $3.19 a share.
Revenue ticked up 1.9% to $48.03 billion, ahead of Wall Street models for $47.01 billion.
Write to Connor Hart at [email protected]