GM Projects Strong 2026 Profits and Buybacks Following Costly Electric Vehicle Pivot

2026-01-27 companies

Detroit, Tuesday, 27 January 2026.
General Motors overcame a $3.3 billion quarterly loss driven by electric vehicle write-offs to authorize a new $6 billion share buyback, signaling strong confidence in its 2026 profitability.

Q4 2025 Financials

On January 27, 2026, General Motors (GM) reported a net loss of $3.31 billion for the fourth quarter of 2025 [1]. This loss translates to $3.60 per share [7]. The Q4 2025 revenue totaled $45.29 billion, a 5% decrease from the $47.7 billion recorded in Q4 2024 [1]. The results reflect significant one-time adjustments related to scaling back electric vehicle (EV) production and restructuring in China, with special charges amounting to $7.2 billion [2].

Full-Year 2025 Performance

Despite the challenging fourth quarter, GM’s full-year 2025 net income reached $2.7 billion, though this is less than half of the $6 billion earned in 2024 [1]. Total revenues for 2025 amounted to $185 billion, a 1.3% decrease compared to the $187.4 billion in 2024 [1][4]. However, vehicle sales saw a 5.5% increase, reaching 2,853,299 units [1]. GM’s performance in 2025 was marked by a #1 ranking in total U.S. sales, with 2.9 million deliveries, a 6% year-over-year increase, resulting in a 17.2% U.S. market share [4].

Strategic Adjustments and Future Outlook

GM is actively reevaluating its product portfolio, shifting away from an all-electric vehicle strategy [2]. As part of this strategic realignment, the company expects to recognize material EV-related charges in Q3 2026 [4]. Despite these adjustments, GM projects strong financial performance for 2026 [2]. The company anticipates capital spending of $10 billion to $12 billion in 2026, which includes investments in battery cell manufacturing joint ventures [1]. GM expects EBIT-adjusted margins in North America to range between 8% and 10% for 2026 [2][1].

Capital Allocation and Shareholder Returns

Bolstering investor confidence, GM’s board authorized a new $6 billion share repurchase program and increased the quarterly common stock dividend by $0.03 to $0.18 per share [2]. This decision reflects GM’s strong financial position and commitment to returning value to shareholders [4]. In 2025, GM returned $6.0 billion to shareholders through share repurchases and ended the year with approximately 930 million diluted shares outstanding [4]. GM projects net income between $10.3 billion and $11.7 billion for 2026, with adjusted net income between $13 billion and $15 billion [1].

Sources

automotive industry General Motors