GM Boosts 2026 Outlook on Premium Pricing for Big Trucks

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Or sign-in if you have an account.A 2026 Chevrolet Colorado Trail Boss truck. Photographer: Graham Hughes/Bloomberg Photo by Graham Hughes /Bloomberg(Bloomberg) — General Motors Co. raised its full-year profit forecast by another $500 million after beating second-quarter earnings estimates, powered by stronger margins on its largest vehicles and lower tariff costs. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Detroit automaker said Tuesday it now expects its earnings before interest and taxes of as much as $16 billion this year. The upgraded projections came after GM said it made $3.57 a share, exceeding Wall Street analysts’ consensus forecast of $3.19, after buying back more shares.GM’s brighter outlook came despite a tough second quarter in which its US sales fell, including the large pickup trucks and SUVs that make most of its earnings. The company has kept profits up by maintaining low inventories and elevated prices on its most profitable models. Chief Executive Officer Mary Barra said she sees that positive momentum continuing into next year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“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,” Barra said in her quarterly letter to shareholders. Adjusted earnings before interest and taxes this year will range from $14 billion to $16 billion, above a 2026 forecast of $13.5 billion to $15.5 billion it made in April and the $13 billion to $15 billion it saw in January.J.P. Morgan analyst Rajat Gupta, who has an overweight rating on the stock, pointed to continued strength in GM’s core North American market and the company’s bullish outlook into next year. “Early commentary for 2027 is constructive, highlighting enhanced pricing power on the next-gen truck platform, increased full-size SUV supply” and other factors, he wrote in a research note.Shares of GM rose 2.5% to $77.67 as of 9:45 a.m. in New York. The stock is down about 4.5% this year. GM lowered its expected net income by at least $1.5 billion to a range of $9.9 billion to $11.4 billion, due to electric vehicle-related charges. The company added another $2.3 billion in those charges as it lowers production of all-electric models. That brings GM’s total EV write-downs to $11 billion as it pulls back on its once aggressive electrification strategy.Chief Financial Officer Paul Jacobson told analysts on a conference call the carmaker doesn’t expect further large writedowns on EVs and batteries. “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,” he said.GM said it made about $1.3 billion in net income in the second quarter, down from $1.9 billion last year, due partly to those charges. Revenue in the three-month period came to $48.03 billion, compared with analysts’ estimates for $46.61 billion. That came after it posted a 4.2% drop in sales last quarter on weaker demand for its best-selling trucks and Equinox crossover SUV. For the first six months, GM’s’ deliveries fell 6.8%. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Jacobson said the carmaker doesn’t see a correlation between lower sales and higher gasoline prices.“As we look at the overall energy price environment, it hasn’t really impacted us. We’re still selling full-size SUVs as quickly as we can make them,” he said in an interview on Bloomberg Television.The company’s China business equity income rose $83 million, up from $71 million a year ago but below $165 million in the first quarter.GM also said it bought back $2 billion in shares in the quarter ended June 30.—With assistance from Jonathan Ferro and Annmarie Hordern.(Updates with analyst comment in sixth paragraph; Adds opening shares, executive comments.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.