TLDR
- GM reported a $3.3 billion fourth-quarter loss as $7.2 billion in special charges related to electric vehicle operations weighed on results.
- The automaker’s adjusted EPS of $2.51 exceeded Wall Street’s $2.20 estimate, with adjusted operating income hitting $2.8 billion.
- GM announced a 20% quarterly dividend increase to 18 cents per share and greenlit $6 billion in additional share repurchases.
- 2026 guidance calls for $13-15 billion in adjusted earnings and EPS ranging from $11 to $13 for the full year.
- Pre-market trading saw GM shares rally more than 5% following the earnings release and shareholder return programs.
General Motors unveiled fourth-quarter results that tell two different stories. The company suffered a $3.3 billion net loss while beating earnings expectations on an adjusted basis.
The Detroit automaker took a massive hit from $7.2 billion in special charges. Most of these writeoffs stem from pulling back its troubled electric vehicle business and restructuring Chinese operations.
But underneath those charges sits a healthier business. GM generated $2.8 billion in adjusted operating income during Q4. Wall Street had penciled in $2.75 billion.
On a per-share basis, adjusted earnings reached $2.51. That crushed analyst estimates of $2.20. Quarterly revenue totaled $45.29 billion, slightly missing the $45.8 billion target.
Cash Returns Fuel Pre-Market Rally
GM rolled out an investor-friendly package alongside earnings. The board boosted the quarterly dividend by 20%, raising the payout to 18 cents per share.
The company also introduced a fresh $6 billion share buyback authorization. This extends GM’s multi-year effort to shrink its outstanding share count.
The strategy has worked. Outstanding shares fell to 904 million at year-end 2025. Compare that to 995 million one year prior and 1.2 billion at the end of 2023.
CEO Mary Barra emphasized the company’s strong position for capital returns. She made this point while acknowledging ongoing product portfolio changes away from all-electric vehicles.
The market responded positively. GM stock surged over 5% in pre-market trading Tuesday.
Full-Year Performance and Forward Outlook
GM’s 2026 earnings forecast matches analyst expectations. The company targets adjusted earnings between $13 billion and $15 billion.
Full-year EPS should land in the $11 to $13 range. The Street consensus estimate stands at $11.73 per share.
Planned capital expenditures for 2026 run between $10 billion and $12 billion. This spending includes continued portfolio assessment following the EV strategy shift.
For 2025, GM delivered $12.7 billion in adjusted pretax earnings. This fell about $2 billion short of original targets set before tariff implementation.
The automaker managed to increase U.S. market share throughout 2025. This happened during a challenging year marked by tariff adjustments and EV business restructuring.
Breaking down the $7.2 billion in special charges reveals multiple factors. Legal issues involving OnStar and airbags cost $357 million. The shuttered Cruise robotaxi division added $133 million in charges. Relocating company headquarters accounted for another $5 million.
GM had previously disclosed $7.1 billion of these charges in early January. Final accounting added the remaining amounts to reach $7.2 billion total.
The automaker projects net income attributable to stockholders between $10.3 billion and $11.7 billion for 2026. Adjusted automotive free cash flow reached $10.6 billion in 2025.
