Benefiting from robust sales of crossovers and pickup trucks, General Motors (GM.US) achieved growth in its core profit for the fourth quarter of 2025, driving the Detroit automaker's shares up over 4% in premarket trading on Tuesday. The financial results show that General Motors' Q4 revenue decreased by 5.1% year-over-year to $45.29 billion, falling short of the analyst consensus estimate of $45.8 billion. The net loss attributable to shareholders was $3.31 billion, higher than the net loss of $2.96 billion in the same period last year. Adjusted EBIT was $2.84 billion, an increase of 13.3% compared to the prior year. The adjusted EBIT margin was 6.3%, up from 5.3% a year earlier. Adjusted earnings per share were $2.51, a significant increase of 30.4% year-over-year, surpassing the analyst consensus estimate of $2.20. For the full year 2025, General Motors' revenue declined by 1.3% to $185.02 billion. Net income attributable to shareholders was $2.70 billion, a decrease of 55.1% year-over-year. Adjusted EBIT was $12.75 billion, down 14.6% from the previous year. Adjusted earnings per share were $10.60, remaining flat compared to the prior year. Looking ahead, General Motors forecasts 2026 adjusted EBIT to be in the range of $13.0 billion to $15.0 billion, with the midpoint of this range exceeding the analyst consensus estimate of $13.39 billion. It anticipates net income between $10.3 billion and $11.7 billion. Adjusted earnings per share are projected to be $11.00 to $13.00, with the midpoint also beating the consensus estimate of $11.73. Furthermore, General Motors' board declared a quarterly dividend increase of $0.03 to $0.18 per share and approved a new $6 billion stock repurchase program. General Motors' 2026 performance guidance is based on selling more of its largest trucks and SUVs, such as the GMC Sierra and Cadillac Escalade, while reducing electric vehicle sales. This guidance also factors in the benefit that General Motors and other traditional automakers are deriving from President Trump's efforts to dilute the Biden-era fuel economy standards—enabling them to sell more high-fuel-consumption vehicles without paying penalties or purchasing EV credits from companies like Tesla, highlighting how sales of high-priced new models and a more lenient regulatory environment are driving profit growth. Despite expectations of a slight contraction in the U.S. new vehicle market this year and potential tariff impacts on some imported vehicles and parts, the automaker still predicts it will generate sufficient profit to increase returns to shareholders. General Motors has repurchased over $20 billion in stock in recent years, a move that has helped propel its share price to record highs. General Motors CEO Mary Barra stated in a letter to shareholders, "We expect the U.S. new vehicle market to remain resilient. Looking forward, we are in a U.S. regulatory and policy environment that is increasingly aligned with customer demand." General Motors recorded substantial impairment charges as it scaled back its struggling electric vehicle business, leading to a net loss of $3.31 billion in the fourth quarter of 2025. The company's ongoing buyback plan had faced scrutiny after the automaker indicated earlier this month that it would take additional EV-related impairments, bringing the total to approximately $7.6 billion. The company stated it expects to incur more material impairments this year, although the scale will be significantly smaller than the amounts already announced.
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