General Motors delivered an adjusted earnings beat in the fourth quarter of 2025, posting $2.51 per share against expectations, while reporting a GAAP net loss due to substantial charges tied to electric vehicle realignment. The company authorized a new $6 billion share repurchase program, raised its quarterly dividend by 20% to $0.18 per share, and issued optimistic 2026 guidance projecting adjusted EBIT between $13 billion and $15 billion. Strong demand for internal combustion engine trucks and SUVs drove performance, offsetting EV-related headwinds and positioning GM for continued shareholder returns.
GM Delivers Solid Adjusted Profitability Amid EV Transition Challenges
General Motors reported fourth-quarter adjusted earnings per diluted share of $2.51, surpassing consensus estimates, on adjusted EBIT of $2.8 billion and revenue of $45.3 billion. The adjusted figures reflect robust operational execution in North America, where consumer preference for full-size pickups and SUVs continued to fuel profitability. GAAP results showed a net loss attributable to stockholders of $3.3 billion, or $3.60 per diluted share, primarily driven by more than $7.2 billion in special charges. The largest portion—approximately $6.0 billion—stemmed from realignment of electric vehicle capacity and investments, prompted by softer EV demand and changes in U.S. government policy, including the expiration of certain consumer incentives and reduced emissions regulation stringency.
For the full year 2025, GM achieved adjusted EBIT of $12.7 billion, with an adjusted EBIT margin of 6.9 percent, and adjusted automotive free cash flow of $10.6 billion. GAAP net income attributable to stockholders totaled $2.7 billion, or $3.27 per diluted share. Revenue for the year reached $185.0 billion. North America remained the primary profit engine, generating $10.5 billion in adjusted EBIT for the full year, though margins moderated due to higher tariffs, warranty costs, and disciplined production alignment to match demand.
The company’s U.S. performance underscored its market leadership, with total sales of approximately 2.9 million vehicles, securing the top position in the market and gaining 0.6 percentage points in estimated market share to 17.2 percent. Full-size pickups and SUVs maintained dominant positions, with Chevrolet Silverado and GMC Sierra leading their segments. Incentive spending remained disciplined at 4.4 percent of average transaction price, below industry averages, supporting pricing power.
Significant Charges Reflect Strategic Pivot in Electrification
The substantial Q4 charges highlight GM’s recalibration of its electric vehicle strategy. Cumulative EV-related realignment costs have mounted amid evolving market dynamics and policy shifts. In addition to the Q4 impact, prior periods included $1.6 billion in Q3 related to facility transitions and supplier settlements. These actions aim to better align production with actual consumer demand, reducing future losses in the EV segment by an estimated $1.0 billion to $1.5 billion annually starting in 2026, alongside regulatory benefits from lower emissions credit purchases.
Despite the near-term costs, GM emphasized progress in internal combustion engine vehicles and software/services. Deferred revenue from OnStar and Super Cruise reached $5.4 billion, up 65 percent year-over-year, with subscriber growth projected to drive meaningful revenue increases.
Aggressive Capital Return Initiatives Signal Confidence
The Board approved a new $6.0 billion share repurchase authorization with no expiration date. This follows previous buybacks that reduced diluted shares outstanding by 156 million during 2025, ending the year at approximately 930 million. The program underscores management’s commitment to returning excess capital to shareholders after funding investments and maintaining a strong balance sheet.
Separately, the quarterly common stock dividend increased by $0.03 to $0.18 per share, a 20 percent hike, payable in March 2026. This move reflects sustained cash generation and confidence in future profitability.
2026 Outlook Points to Margin Expansion and Resilient Cash Flow
GM provided guidance for 2026 that anticipates improved profitability. Adjusted EBIT is projected at $13.0 billion to $15.0 billion, with adjusted EPS of $11.00 to $13.00. Adjusted automotive free cash flow is expected between $9.0 billion and $11.0 billion, supported by North America EBIT-adjusted margins returning to the 8-10 percent range. Capital spending remains in the $10.0 billion to $12.0 billion range, inclusive of battery manufacturing joint ventures.
Key tailwinds include flat-to-up wholesale volumes for internal combustion engine vehicles in North America, improved EV losses, warranty benefits, and regulatory savings. Headwinds incorporate tariffs estimated at $3.0 billion to $4.0 billion, commodity and foreign exchange pressures, and onshoring costs.
CEO Mary Barra noted the sustainability of the company’s capital allocation approach, highlighting consistent cash generation from strong brands, winning vehicles, technology-driven services, and operating discipline.
Financial Summary Tables
Q4 2025 Key Metrics
Full Year 2025 Key Metrics
2026 Guidance Ranges
| Metric | Amount | Notes |
|---|---|---|
| Revenue | $45.3 billion | |
| EBIT-Adjusted | $2.8 billion | Margin 6.3% |
| Adjusted EPS (diluted) | $2.51 | Beat estimates |
| GAAP Net Loss | $3.3 billion | EPS $(3.60) |
| Adjusted Automotive FCF | $2.8 billion | |
| Metric | Amount | Notes |
| Revenue | $185.0 billion | |
| EBIT-Adjusted | $12.7 billion | Margin 6.9% |
| Adjusted EPS (diluted) | $10.60 | |
| GAAP Net Income | $2.7 billion | EPS $3.27 |
| Adjusted Automotive FCF | $10.6 billion | |
| Metric | Low | High |
| EBIT-Adjusted | $13.0 billion | $15.0 billion |
| Adjusted EPS (diluted) | $11.00 | $13.00 |
| Adjusted Automotive FCF | $9.0 billion | $11.0 billion |
| Capital Spending | $10.0 billion | $12.0 billion |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock prices fluctuate, and past performance is no guarantee of future results. Investors should conduct their own research and consult with qualified financial professionals before making decisions.