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10h ago

GM Beats on Adjusted Q4, Books EV Charges, Lifts Payouts, Raises 2026 Outlook

Large EV write-downs masked core strength, with GM emphasizing cash generation.

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Mary Barra, chairman and chief executive officer of General Motors Co., at General Motors global headquarters at Hudson's Detroit in Detroit, Michigan, US, on Monday, Jan. 12, 2026.
SOUTHFIELD, MICHIGAN - OCTOBER 29: Chevrolet Equinox EVs are shown for sale at a Chevrolet dealership on October 29, 2025 in Southfield, Michigan. General Motors announced today it will be laying off 3,300 hourly employees around the country at plants that make electric vehicles and batteries due to slowing EV consumer interest. GM's all-electric Factory Zero plant, which manufactures the Chevrolet Silverado EV and the GMC Sierra EV, among others, will be hit the hardest, with 1,200 workers to be laid off. (Photo by Bill Pugliano/Getty Images)

Overview

  • GM reported adjusted EPS of $2.51 on $45.29 billion in revenue, but a $3.3 billion GAAP loss after more than $7.2 billion in EV-related charges.
  • Shares hit a record high after the board authorized a new $6 billion buyback and lifted the quarterly dividend 20% to $0.18 per share.
  • Guidance for 2026 calls for $13–$15 billion in adjusted EBIT, $9–$11 billion in adjusted automotive free cash flow, and $11–$13 in adjusted EPS, with North America margins targeted at 8%–10%.
  • Tariffs cost GM $3.1 billion in 2025 and are expected to total $3–$4 billion in 2026, with management pursuing mitigation through pricing, onshoring, and cost actions.
  • GM’s EV reset included a roughly 43% drop in Q4 EV sales and a halt to BrightDrop production, with management projecting a $1–$1.5 billion improvement in EV losses and $550–$750 million in regulatory credit savings this year.