General Motors (GM) continued its strong run of quarterly performance, with fourth quarter earnings that topped estimates, in addition to upping its dividend and instituting a new $6 billion stock buyback plan.
For the quarter, reported revenue of $45.29 billion vs $45.37 billion estimated, down 5.1% compared last year. GM posted Q4 adjusted EPS of $2.51 vs $2.28 expected, on adjusted EBIT of $2.843 billion vs. $2.77 billion estimated.
For 2026, GM projects the following:
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Adjusted EBIT in a range of $13.0 – 15.0 billion
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Adjusted automotive free cash flow of $9.0 – $11.0 billion
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Adjusted EPS (diluted) of $11.00 – $13.00
GM shares were lower in pre-market trading.
“We expect the U.S. new vehicle market will continue to be resilient, and with our compelling vehicle s, technology -driven services, and operating discipline, 2026 should be an even better year for GM,” CEO Mary Barra said in a statement. “We expect our full year EBIT -adjusted margins in North America will be back in the 8 -10% margin range.”
Due to higher expectations for the year, GM’ s board upped its quarterly dividend by $0.03 to a new rate of $0.18 per share, and declared a new $6 billion share repurchase authorization.
For 2025, GM reported the following versus its guidance:
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Adjusted EBIT in a range of $12.7 billion vs $12 – $13 billion
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Adjusted automotive free cash flow of $10.6 billion vs $10 – $11 billion
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Adjusted EPS (diluted) of $10.60 vs $9.75 – $10.50
“We are operating in a U.S. regulatory and policy environment that is increasingly aligned with customer demand. As a result, we continue to onshore more production to meet strong customer demand for our vehicles,” Barra said.
Last quarter GM CEO Mary Barra said the MSRP tariff offsets announced by the White House last summer allowed it to boost profit guidance for the year. GM said its full-year tariff exposure came in at $3.1 billion, versus the $3.5 billion to $4.5 billion it projected earlier.
GM said headwinds this year include an additional $3.0 to $4.0 billion in tariff costs, plus commodity and FX headwinds ($1.0 to $1.5 billion), and onshoring and other costs (approximately $1.0 to $1.5 billion).
Noteworthy is GM claiming EV unit losses would improve by $1.0 to $1.5 billion, and it would recognize regulatory benefits of $550 – $750 million due to savings from not having to purchase emmisions credits.
Earlier this month GM took an additional $6 billion charge to its EV business, citing softer-than-expected demand for EVs and the loss of the federal EV tax credit at the end of Q3 2025.
