General Motors Company (NYSE:GM) reported mixed fourth quarter results Tuesday, delivering adjusted earnings that beat Wall Street expectations but posting a substantial net loss driven by one-time charges tied to its electric vehicle strategy.
The Detroit automaker said it earned $2.51 per share on an adjusted basis for the fourth quarter, above the $2.20 per share average estimate compiled by LSEG.
Revenue for the quarter came in at $45.29 billion, down 5.1% year-over-year and slightly below the $45.8 billion expected.
Despite the adjusted earnings beat, GM reported a net loss attributable to stockholders of $3.3 billion in Q4. The company said the result was reduced by more than $7.2 billion in special charges, primarily related to a realignment of electric vehicle capacity and investments.
GM cited expected declines in consumer demand for EVs and US government policy changes, including the termination of consumer incentives and less stringent emissions regulations, as key factors behind the restructuring.
For the full year, GM reported net income attributable to stockholders of $2.7 billion, with adjusted EBIT of $12.7 billion.
The company’s full-year results fell below its 2025 guidance range of $7.7 billion to $8.3 billion in net income, though adjusted EBIT came in within the company’s forecasted $12 billion to $13 billion range.
Looking ahead, GM issued guidance for 2026 that calls for stronger financial performance. The company expects net income attributable to stockholders between $10.3 billion and $11.7 billion and adjusted EBIT of $13 billion to $15 billion.
GM also projected automotive operating cash flow of $19 billion to $23 billion and adjusted automotive free cash flow of $9 billion to $11 billion for 2026.
In addition to its earnings report, GM’s board approved a 20% increase in the quarterly dividend and authorized a new $6 billion share repurchase program.
Wedbush analysts welcomed the “solid” quarter, noting that GM’s results were strong even amid the impairment charges tied to its EV business.
They see the company’s guidance as “relatively conservative,” pointing to expected multi-billion dollar restructuring charges tied to its EV business and continued tariff headwinds.
The analysts noted that GM expects a gross tariff impact of $3 billion to $4 billion, along with additional costs from commodity inflation, higher DRAM costs, and foreign exchange pressures. Still, they said GM’s guidance reflects “strong operational discipline” and ongoing margin expansion from its software business.
“While the tariff headlines and the EV restructuring activities remain a lingering headache to the bottom-line, GM continues to navigate this difficult environment flawlessly to deliver strong bottom-line returns with significant cash flow generation over the coming years with greater focus on its ICE vehicle fleet to drive profitable growth,” Wedbush wrote.
The firm has an ‘Outperform’ rating and $95 on General Motors, which traded up more than 7% at about $85 on Tuesday morning.