TLDR
- General Motors posted a $3.3 billion Q4 2025 loss driven by $7.2 billion in writeoffs from its electric vehicle business pullback.
- Adjusted earnings of $2.51 per share beat analyst estimates of $2.20, with operating income reaching $2.8 billion.
- The automaker raised its quarterly dividend 20% to 18 cents per share and authorized $6 billion in new share buybacks.
- GM forecasts 2026 adjusted earnings of $13-15 billion with EPS between $11-$13 for the year.
- Shares climbed over 5% in pre-market trading following the earnings report and capital return announcements.
General Motors delivered mixed results for the fourth quarter of 2025. The company reported a $3.3 billion net loss while simultaneously beating Wall Street earnings expectations.
The headline loss came from $7.2 billion in special charges. These writeoffs related primarily to GM’s struggling electric vehicle operations and restructuring efforts in China.
Strip away those charges and the picture looks different. GM posted $2.8 billion in adjusted operating income for the quarter. Analysts had projected $2.75 billion.
Adjusted earnings per share reached $2.51. That topped the consensus estimate of $2.20 per share. Revenue came in at $45.29 billion, just under the $45.8 billion forecast.
Investor Rewards Drive Stock Higher
GM management unveiled plans to return more cash to shareholders. The board approved a 20% increase in the quarterly dividend, bringing it to 18 cents per share from 15 cents.
A new $6 billion share repurchase authorization adds to the company’s ongoing buyback program. GM has been aggressively reducing its share count to boost stock value.
The company ended 2025 with 904 million shares outstanding. That’s down from 995 million a year earlier and 1.2 billion at the close of 2023.
CEO Mary Barra said GM maintains a strong position for returning capital to shareholders. This commitment holds even as the automaker reshapes its product strategy away from all-electric vehicles.
Investors liked what they saw. GM shares jumped more than 5% in pre-market trading Tuesday morning.
2026 Outlook Meets Expectations
GM provided financial guidance for 2026 that aligns with analyst forecasts. The company expects adjusted earnings between $13 billion and $15 billion for the current year.
Projected earnings per share should fall between $11 and $13. Wall Street consensus sits at $11.73 per share.
Capital spending for 2026 will range from $10 billion to $12 billion. This includes ongoing portfolio evaluation following the EV business pullback.
The automaker delivered $12.7 billion in adjusted pretax earnings for full-year 2025. That came in roughly $2 billion below initial projections made before automotive tariffs took effect.
GM grew its U.S. market share during 2025 despite facing headwinds. The company navigated tariff changes while scaling back its money-losing electric vehicle operations.
The $7.2 billion in special charges included several components beyond EV writeoffs. Legal matters related to OnStar and airbags accounted for $357 million. The defunct Cruise robotaxi unit generated $133 million in charges. Another $5 million covered the company’s recent headquarters relocation.
GM had pre-announced $7.1 billion of these charges earlier in January. Additional items pushed the final total to $7.2 billion for the quarter.
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