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GM Expects Profit to Grow $2 Billion This Year
Demand for High-Margin Vehicles to Fuel Higher Dividend and Buybacks
General Motors Co. expects profit to grow as much as $2 billion this year and plans to return more of that to shareholders with a higher dividend and buybacks, fueled by demand for its highest-margin vehicles.
Adjusted earnings before interest and taxes this year will range from $13 billion to $15 billion, which is higher than last year’s $12.7 billion, the company said Jan. 27 in a statement that also detailed fourth-quarter results. GM made $2.51 a share in the latest quarter, a result that easily beat Wall Street analysts’ consensus forecast of $2.28.
The company’s guidance underscores how much sales of pricey new models and a permissive regulatory environment is helping lift profit growth. Even with the U.S. new car market expected to shrink slightly this year and a tariff hit on some imported vehicles on parts, the automaker projects making enough money to boost payments to shareholders.
GM shares rose 3.7% in premarket trading to $82.40 as of 8:14 a.m. in New York. The stock closed Jan. 26 down 2.3% so far this year, after a more than 50% gain in 2025.
GM’s new guidance rests on selling more of its largest trucks and SUVs such as its GMC Sierra and Cadillac Escalade — and fewer electric vehicles. Legacy automakers are benefiting from President Donald Trump’s efforts to water down Biden-era fuel economy rules, allowing them to sell more gas guzzlers without paying fines or having to buy EV credits from the likes of Tesla Inc.
GM Q4 2025 Press Release and Financial Highlights
“GM is executing at a high level,” Alexander Potter, an analyst at Piper Sandler with an “overweight” rating on the stock, said in a research note. “Critically, the company has re-upped its buyback authorization, despite fears that EV charges would impact the pace of repurchases.”
The Detroit-based manufacturer said it authorized $6 billion in share buybacks and an increase in its quarterly dividend by 3 cents to 18 cents a share. GM has bought back more than $20 billion in shares over the past several years, which has helped pushed the stock up to all-time highs.
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Barra
GM now expects to earn between $10.3 and $11.7 billion in net income, up from $2.7 billion in 2025, a year in which the company took massive write downs while downsizing its ailing EV business. Those charges resulted in a $3.3 billion net loss in the fourth quarter, and an unadjusted loss of $3.60 a share.
“We expect the U.S. new vehicle market will continue to be resilient,” GM CEO Mary Barra said in a letter to shareholders. “Looking ahead, we are operating in a U.S. regulatory and policy environment that is increasingly aligned.”
An ongoing buyback plan was in question after the automaker earlier this month said it would take an additional charge related to EVs, bringing its total write-down to some $7.6 billion. The company said it anticipates more material write downs this year, but that they will be significantly smaller than what has been announced.
“We’re going to continue to work to take costs out to get our EV portfolio profitable,” Barra said in an interview with Bloomberg Television, adding the company also plans to offer “a handful” of hybrid gas-electric vehicles.
Revenue in the latest quarter came to $45.3 billion, compared with analysts’ estimates for $45.4 billion. That came after it posted a 6.9% drop in sales last quarter on weaker demand for EVs and cheaper models such as the Chevrolet Trax.
GM’s China business lost $513 million in the fourth quarter and $316 million for all of last year after a $600 million charge for restructuring the business in the last quarter.
The carmaker said it’s seeing increased revenue from its Onstar telematics and Super Cruise hands-free driving services. Deferred revenue, which is recognized over three years, is expected to grow $2.1 billion this year to $7.5 billion, the company said.
