GM Q2 2022 earnings were headlined by $1.7 billion in income on $35.8 billion in revenue. Compared to the second quarter of 2021, the results represent a 40 percent downturn in income and a 4.7 percent uptick in revenue on “higher corporate expenses primarily due to year-over-year mark-to-market changes,” according to the automaker.
GM Q2 2022 Earnings Summary
|Q2 2022||Q2 2021||Q2 2022 - Q2 2021||% CHANGE Q2 2022 / Q2 2021|
|NET INCOME ATTRIBUTED TO STOCKHOLDERS||$1,692||$2,836||$-1,144.0||-40.3%|
|NET INCOME MARGIN||4.7%||8.3%||-3.6%||N/A|
|EARNINGS PER SHARE (EPS) DILUTED||$1.14||$1.90||$-0.76||-40%|
|NON GAAP METRICS|
|ADJUSTED AUTOMOTIVE FREE CASH FLOW||$1,407||$2,478||-$1,071||-43.2%|
|EPS DILUTED - ADJUSTED1||$1.14||$1.97||$-0.8||-42.1%|
|GM NORTH AMERICA EBIT-ADJUSTED||$2,299||$2,894||$-595.0||-20.6%|
|- GM NORTH AMERICA EBIT-ADJUSTED MARGIN||8.0%||10.4%||-2.4%||N/A|
|GM INTERNATIONAL EBIT-ADJUSTED||$209||$15||$+194.0||-|
|GM CHINA EQUITY INCOME||-$87||$276||$-363.0||-131.5%|
|GM FINANCIAL EBT-ADJUSTED||$1,106||$1,581||$-475.0||-30%|
Global Sales & Share
GM recorded 1,421 million vehicle deliveries globally during the quarter, representing a drop of 19 percent year-over-year compared to the 1,757 million delivered during the same time frame a year ago.
GM’s global market share in the markets where it competes was 9.6 percent during Q2 2022, down from 9.9 percent during the same time period a year ago. This was the result of a steep drop of 1.6 percentage points in China due to market dynamics driven by COVID-19 impacts, offset by a 0.9 percent gain in North America share on strong performance in multiple retail segments as well as fleet volume.
GM North America
GM North America (GMNA), General Motors’ largest and most profitable division, posted:
- $28.8 billion in revenue vs. $27.9 billion in revenue in the year-ago quarter
- $2.3 billion EBIT-adjusted vs. $2.9 billion in the year-ago quarter
- 662K vehicle sales vs. 760K in the year-ago quarter
GM International (GMI), which excludes GM China joint venture earnings, posted:
- $3.8 billion in revenue vs. $2.8 billion in the year-ago quarter
- $0.3 billion EBIT-adjusted vs. (0.3) billion in the year-ago quarter
- 155K vehicle sales vs. 118K in the year-ago quarter
GM China Auto Joint Venture
GM China auto joint venture posted:
- $6.1 billion in revenue vs. $9.0 billion in the year-ago quarter
- $(3.4) billion in equity income vs. $0.3 billion in the year-ago quarter
- 473K vehicle sales vs. 620K in the year-ago quarter
Cruise, GM’s division that’s working on developing and bringing to market a robo-taxi service, posted:
- $0.0 billion in revenue vs. $0.0 billion in the year-ago quarter
- $(0.5) billion in EBIT-adjusted vs. $(0.3) billion in the year-ago quarter
GM Financial, General Motors’ captive finance arm, posted:
- $1.1 billion EBT-adjusted vs. $1.6 billion in the year-ago quarter
- 29.9 percent in return on average tangible common equity vs. 35.5 percent in the year-ago quarter
- $29.7 billion in liquidity vs. $28 billion in the year-ago quarter
- $7.62x leverage ratio vs. 7.66x in the the year-ago quarter
GM adjusted its full-year 2022 guidance.
It now forecasts full-year net income to be between $9.6 billion and $11.2 billion, and EBIT-adjusted will be between $13.0 billion and $15.0 billion. Full-year Earnings Per Share (EPS)-diluted will be between $5.76 and $6.76, and EPS-diluted-adjusted will be between $6.50 and $7.50.
Full-year net automotive cash provided by operating activities guidance range between $16.0 billion and $19.0 billion, and adjusted automotive free cash flow guidance range of between $7.0 billion and $9.0 billion.