Fourth-quarter results exceed expectations
General Motors delivered another strong quarterly performance, reporting fourth-quarter earnings that exceeded market expectations while announcing a dividend increase and a new $6 billion share repurchase program.
The automaker posted revenue of $45.29 billion for the quarter, slightly below consensus estimates but down just over 5% from a year earlier. Adjusted earnings per share came in at $2.51, comfortably ahead of forecasts, while adjusted EBIT reached $2.84 billion.
Shareholder returns boosted
On the back of the results, GM shares surged nearly 9%, closing at a record high of $86.38. The board approved a $0.03 increase in the quarterly dividend to $0.18 per share and authorized a new $6 billion stock buyback.
Chief financial officer Paul Jacobson said the company’s profitability continues to support strong cash generation, allowing capital to be returned to shareholders while maintaining balance sheet flexibility.
2026 outlook remains robust
Looking ahead, GM forecast adjusted EBIT of $13 billion to $15 billion for 2026, alongside adjusted automotive free cash flow of $9 billion to $11 billion. Adjusted diluted EPS is expected to range between $11.00 and $13.00.
For 2025, GM met or exceeded its own guidance across key metrics, reinforcing confidence in its operational performance despite a challenging macro environment.
Tariffs and cost pressures weigh on outlook
The company cautioned that 2026 will bring additional headwinds, including $3 billion to $4 billion in incremental tariff costs, as well as commodity and foreign exchange pressures. GM also cited continued onshoring and restructuring costs.
Despite these challenges, management expects electric vehicle losses to improve by up to $1.5 billion, supported in part by regulatory credits and cost reductions.
EV demand slows while trucks and SUVs lead
GM acknowledged softer-than-expected demand for electric vehicles, with EV sales falling sharply in the fourth quarter. The company has taken cumulative EV-related write-downs exceeding $6 billion as it adjusts to a slower adoption curve.
By contrast, sales of full-size pickups and SUVs continued to perform strongly, helping GM remain the top-selling automaker in the U.S. in 2025.
