GM, owner of Chevrolet, raises profit forecast after increase in sales of pickup trucks and SUVs in the US

The average selling price of a GM vehicle in the USA was around US$52,000 (R$264,160, in direct conversion) in the quarter, slightly above that recorded a year earlier. "We've managed to overcome some of that uncertainty," GM Chief Financial Officer Paul Jacobson told CNBC on Tuesday morning, adding that the company's customers "have shown a lot of resilience." GM shares rose about 4% in morning trading on Tuesday. GM executives expressed confidence that this pace could continue in 2027, with expectations of growth in revenue, operating profit and cash generation. One of the drivers of this growth is the defense equipment business, which is expected to generate almost US$700 million (R$3.56 billion) in revenue this year and grow, on average, 30% over the next few years. In a report to investors released this Tuesday, analyst Chris McNally, from Evercore ISI, stated that GM has presented consistent execution, even as some global competitors face difficulties. GM logo at General Motors headquarters in Detroit, USA. Rebecca Cook/ Reuters Repatriation of production The company's earnings before interest and taxes (Ebit) in the quarter rose to US$3.9 billion (R$19.81 billion), compared to around US$3 billion (R$15.24 billion) a year earlier. On an adjusted basis, profit was US$3.57 per share (R$18.14 per share), above analysts' expectations of US$3.20 per share (R$16.26 per share), according to data from LSEG. GM raised its profit projection for 2026 by US$500 million (R$2.54 billion), moving to a range between US$14 billion (R$71.12 billion) and US$16 billion (R$81.28 billion), after having already increased this estimate by the same amount earlier this year. Heightened demand from American consumers helped the company offset pressures caused by rising raw material costs and expenses related to foreign trade, including additional spending on transferring part of vehicle production to the United States to avoid tariffs imposed by Donald Trump's government. Chevrolet Equinox EV Disclosure / GM GM will begin producing the Chevrolet Equinox and Chevrolet Blazer in the United States from 2027. Currently, these Chevrolet SUVs are manufactured in Mexico. The automaker is also moving part of its pickup truck production to a factory in the state of Michigan. According to the company, the transfer of production from abroad to the United States, combined with increased spending on software, generated additional costs of between US$1 billion (R$5.08 billion) and US$1.5 billion (R$7.62 billion). GMC Hummer EV Disclosure / General Motors More sales of combustion vehicles boost profits At the same time, the automaker benefited from the increase in sales of combustion-powered vehicles and a sharp drop in sales of electric vehicles, a segment that has historically generated losses for the company. GM stated that losses from electric vehicles are expected to fall between US$1 billion (R$5.08 billion) and US$1.5 billion (R$7.62 billion) this year. Since the second quarter of 2025, the company has recorded US$10.9 billion (R$55.37 billion) in expenses related to electric vehicles, including US$2.3 billion (R$11.68 billion) this quarter. Jacobson said the automaker has completed cash expenditures related to reducing investments in electric vehicles. The measures adopted by President Donald Trump's government last year to relax energy efficiency and vehicle emissions rules, allowing companies to sell more cars with combustion engines, should benefit GM's financial results by between US$500 million (R$2.54 billion) and US$750 million (R$3.81 billion) this year. The largest U.S. automaker by sales volume said its results will continue to be pressured by tariffs and rising supply chain costs. GM maintained its previous forecast that the tariffs will have a negative impact of between US$2.5 billion (R$12.70 billion) and US$3.5 billion (R$17.78 billion) on its results. The company also stated that inflation in the costs of raw materials, semiconductors and logistics is expected to reduce its profits by between US$1.5 billion (R$7.62 billion) and US$2 billion (R$10.16 billion) this year. In North America, profit margin increased to 8.6% from 6.1% in the same period last year, despite a 4% drop in quarterly sales. In China, where GM is undergoing a restructuring process, the company recorded an equity income gain of US$83 million (R$421.64 million), above the US$71 million (R$360.68 million) recorded a year earlier. International business, excluding China, registered a 7% drop in l