Automakers reported mixed second-quarter earnings as U.S. tariffs, shifting trade policy, restructuring costs, and uneven regional demand continued to reshape industry profitability.
The details: General Motors, Ford, and Stellantis provided some of the clearest snapshots of their second-quarter financial performance and tariff exposure, while Toyota, Honda, and Mercedes-Benz also offered key insights.
Looking at revenue totals…
GM reported a 31% drop in net income to $1.3 billion, while revenue rose 1.9% to $48 billion. Results included EV-related charges, while adjusted EBIT increased roughly 30% to $3.9 billion.
Ford reported second-quarter revenue of $48.3 billion, down 4% year over year, with a GAAP net loss of $1.3 billion, impacted by a $3.6 billion special-item charge largely related to the BlueOval SK Battery JV disposition and shifts in its EV strategy. Adjusted EBIT rose 17% to $2.5 billion.
Stellantis' net revenues increased 13% year over year to €43.5 billion ($49.8 billion), while net profit reached €0.3 billion (about $346 million), reflecting higher volumes and improved operating performance.
Toyota reported ¥13.53 trillion ($84.5 billion) in consolidated revenue for the April-June quarter, up approximately 10% year over year, while net income attributable to Toyota rose approximately 76% to ¥1.477 trillion ($9.27 billion).
Honda reported ¥6.06 trillion ($38 billion) in revenue for the April-June quarter, up 13.5%, while operating profit rose to approximately ¥530.7 billion ($3.33 billion) and quarterly net profit more than doubled to ¥456.9 billion.
Mercedes-Benz Cars generated €22.99 billion ($26.5 billion) in revenue and €909 million ($1 billion) of adjusted EBIT, down 26% year over year, with results pressured by weaker performance in China, negative pricing and product-transition expenses.
Why it matters: The mixed results highlight how differently automakers are navigating the same market pressures, with profitability naturally influencing future decisions around vehicle pricing, incentives, production and product investment that directly affect dealers.
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Not to mention: U.S. tariffs continued to pressure profits in the second quarter, though the degree of impact varied across the industry as automakers adjusted their full-year outlooks.
GM expects 2026 gross tariff costs of $2.5 billion to $3.5 billion, down from an earlier estimate of $3 billion to $4 billion, reflecting lower tariff exposure and expected benefits associated with tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Ford's tariff outlook has improved from earlier expectations, with the automaker tracking below its previously projected roughly $1 billion in net tariff costs for 2026 and expecting about $500 million in cash recoveries related to tariffs.
Stellantis reported €300 million ($346 million) in net tariff costs during the first half of 2026, including a €400 million ($461.7 million) IEEPA tariff refund, and now expects a €1 billion to €1.2 billion net tariff headwind for the full year.
Honda reported a positive year-over-year tariff impact, with earnings benefiting substantially from lower tariff-related pressure than in the prior-year period, while Toyota and Mercedes-Benz did not disclose their second-quarter tariff charges.
Bottom line: Second-quarter results show that automakers are absorbing tariffs and other market pressures with varying degrees of success, making their ability to protect margins increasingly important for dealers as it could shape pricing, incentives, inventory and product strategies through the rest of the year.
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