GM’s Earnings Top Estimates, But Automaker Warns of Larger Tariff Hit in Second Half

General Motors (GM) on Tuesday posted second-quarter results that topped analysts’ estimates, but warned it could face a bigger headwind from tariffs in the second half of the year.

The parent company of Chevy and Cadillac reported adjusted earnings per share of $2.53 on revenue that fell 1.8% from the same time a year ago to $47.12 billion. Both measures came in above analysts’ estimates compiled by Visible Alpha.

Looking ahead, the automaker held its full-year outlook steady after lowering profit forecasts in April. Last quarter, GM cut its adjusted EPS forecast to a range of $8.25 to $10, down from $11 to $12 previously.

However, the company warned Tuesday that tariffs could be a larger headwind in the third quarter than the second, and impact fourth-quarter results as well.

GM CEO Mary Barra said in the automaker’s quarterly shareholder letter that executives are working to position the business to “adapt to new trade and tax policies, and a rapidly evolving tech landscape.”

GM said it is “making solid progress to mitigate at least 30%” of the projected $4 billion to $5 billion tariff headwind “through manufacturing adjustments, targeted cost initiatives, and consistent pricing.”

Shares of GM dropped over 3% in premarket trading shortly after Tuesday’s report. They entered the day roughly flat on the year.