GM reported fourth-quarter adjusted earnings that beat Wall Street expectations and announced a $6 billion share repurchase authorization.
The company led by Mary Barra announced a 20% dividend increase, despite over $7.2 billion in charges related to its EV business restructuring.
The Detroit automaker posted fourth-quarter adjusted earnings per share of $2.51, beating estimates of $2.28.
Adjusted EBIT came in at $2.84 billion, above the $2.77 billion expected. Revenue of $45.29 billion slightly missed estimates of $45.37 billion and declined 5.1% year over year.
Fourth-quarter net income attributable to stockholders was a loss of $3.3 billion, reduced by more than $7.2 billion in special charges driven primarily by a realignment of EV capacity and investments to adjust to expected declines in consumer demand for EVs, the company said.
The charges also reflect US government policy changes including the termination of consumer incentives and the reduction in the stringency of emissions regulations, GM said.
For the full year, GM reported net income attributable to stockholders of $2.7 billion and adjusted EBIT of $12.7 billion, at the high end of its guidance range.
“GM delivered full-year EBIT-adjusted at the high end of our guidance range, and we are pleased that we delivered a total return of 54% for our investors,” CEO Mary Barra said in the shareholder letter.
Barra added that GM recorded its highest US market share since 2015 “with low inventory, low incentives, and strong pricing.”
Shares of the Detroit automaker jumped by 5% to $83.55 on Tuesday’s pre-market session immediately after the results were announced.
2026 Outlook
GM issued 2026 guidance calling for net income attributable to stockholders of $10.3 billion to $11.7 billion, adjusted EBIT of $13.0 billion to $15.0 billion, and adjusted diluted EPS of $11.00 to $13.00.
The company expects automotive operating cash flow of $19.0 billion to $23.0 billion and adjusted automotive free cash flow of $9.0 billion to $11.0 billion.
Capital spending is anticipated at $10.0 billion to $12.0 billion, inclusive of the company’s battery cell manufacturing joint ventures.
EV Impairments
The fourth-quarter charges add to the $1.6 billion impairment GM announced in October ahead of its third-quarter earnings report, bringing total EV-related charges to approximately $7.6 billion.
UBS analyst Joseph Spak said earlier this month that the additional charges were “not surprising” as GM proceeds with EV business restructuring.
The company recently halted production of its BrightDrop fully electric commercial delivery van, affecting approximately 1,700 employees including those at its CAMI plant in Canada.
EV Sales
GM‘s EV sales declined 43% in the fourth quarter after steady increases in the first two quarters of 2025.
For the full year, electric vehicle sales rose 48% year over year to 169,887 units, making GM the second-largest EV seller in the US behind Tesla Inc.
EVs represented approximately 6% of GM’s total 2.85 million vehicles registered in 2025.
