General Motors confident in year ahead despite fall in headline profits
By Josh White
Date: Tuesday 27 Jan 2026
(Sharecast News) - General Motors reported sharply lower headline profits for 2025 on Tuesday, after absorbing billions of dollars in charges linked to its retreat from electric vehicles, but struck a confident tone on the outlook for 2026 as it lifted shareholder returns and forecast stronger earnings.
The Detroit carmaker posted net income attributable to shareholders of $2.7bn for 2025, down from $6bn a year earlier, while adjusted EBIT fell 14.6% to $12.7bn.
It said the deterioration was driven largely by a weak fourth quarter, when GM recorded a net loss of $3.3bn after more than $7.2bn in special charges.
Those charges were primarily tied to the realignment of EV capacity, writedowns of EV-related investments, and restructuring actions in China, following slower consumer demand after the removal of US tax incentives and a loosening of emissions rules.
Despite the reported loss, underlying performance in the final quarter was more resilient.
Adjusted earnings per share came in at $2.51, comfortably ahead of expectations, even as revenue of $45.3bn narrowly missed forecasts.
Full-year revenue edged down 1.3% to $185bn, while adjusted automotive free cash flow reached $10.6bn, underscoring the cash-generating strength of GM's core business.
North America remained the main profit engine, though earnings there fell sharply year-on-year as pricing pressure and costs weighed on margins.
International operations improved, helped by a much smaller loss from China compared with 2024, while GM Financial delivered slightly lower but still solid results.
Management also highlighted growing contributions from software and services such as OnStar and Super Cruise, with deferred revenue from these offerings expected to rise further in 2026.
Alongside the results, GM announced a 20% increase in its quarterly dividend to 18 cents per share and unveiled a new $6bn share buyback authorisation.
The company had reduced its share count significantly over the past two years, a trend it said would continue as long as cash flows remained robust.
Looking ahead, GM forecast a marked rebound in profitability in 2026, guiding for net income of $10.3bn to $11.7bn and adjusted EBIT of $13bn to $15bn.
Adjusted earnings per share were expected to range between $11 and $13, broadly in line with market expectations.
Capital spending was projected at $10bn to $12bn as the group continued to reassess its product mix, prioritising high-margin trucks and SUVs while scaling back near-term EV ambitions.
Management said the outlook assumed a more permissive regulatory environment in the US and resilient demand for profitable internal combustion models, even as it acknowledged ongoing risks from trade policy and further, albeit smaller, EV-related write-downs.
While EVs remained a long-term goal, GM said it was now calibrating investment more closely to demand, positioning the group for stronger earnings growth and sustained shareholder returns after a turbulent year.
At 0753 ET (1253 GMT) shares in General Motors Company were up 4.1% in premarket trading in New York at $82.68.
Reporting by Josh White for Sharecast.com.
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