GM Stock Gains As Q4 Adj. Profit Beats Market, Sees Growth In FY26, Plans $6 Bln Buyback

(RTTNews) - Shares of General Motors Co. were gaining more than 4 percent in the pre-market activity after the automaker Tuesday reported fourth-quarter adjusted earnings above market estimates, and issued fiscal 2026 outlook, expecting significantly higher profit.

Further, the company's Board declared higher dividend, and approved new $6.0 billion share repurchase authorization.

As announced earlier, the fourth-quarter reported results were hit by more than $7.2 billion in EV related charges, resulting in wider net loss, amid weak revenues below market.

Looking ahead, Mary Barra, Chair and CEO, said, "We expect the U.S. new vehicle market will continue to be resilient, and with our compelling vehicles, technology-driven services, and operating discipline, 2026 should be an even better year for GM. We expect our full year EBIT-adjusted margins in North America will be back in the 8-10 percent margin range..... we are operating in a U.S. regulatory and policy environment that is increasingly aligned with customer demand. As a result, we continue to onshore more production to meet strong customer demand for our vehicles."

Over the next few years, GM projects annual production in the U.S. to rise to 2 million units.

GM announced that its Board of Directors has approved a $0.03 per share increase in the quarterly common stock dividend rate to $0.18 per share, payable March 19 to holders of common stock at the close of trading on March 6.

Further, the approved share repurchase program, which has no expiration date, will be executed in accordance with applicable securities laws and regulations.

For fiscal 2026, the company projects net income attributable to stockholders between $10.3 billion and $11.7 billion, significantly higher than the $2.70 billion profit recorded in fiscal 2025. Earnings per share would be $11.00 - $13.00. In the prior year, earnings per share on a reported basis was $3.27 and adjusted basis was $10.60.

The Wall Street analysts on average expect the company to report earnings of $11.83 per share. Analysts' estimates typically exclude special items.

For the year, the company expects EBIT-adjusted of $13.0 billion to $15.0 billion, higher than $12.75 billion in 2025.

GM said its 2026 financial guidance also includes anticipated capital spending of $10.0 billion to $12.0 billion, inclusive of the company's battery cell manufacturing joint ventures.

In the fourth quarter, the company's attributable net loss was $3.33 billion, compared to prior year's loss of $1.73 billion. Loss per share was $3.60, compared to loss of $1.64 in the same period last year.

The latest fourth-quarter results were reduced by more than $7.2 billion in special charges mainly related to its pullback from electric vehicles or EVs amid the changes in U.S. policies and declines in consumer demand for EVs.

Adjusted earnings were $2.38 billion or $2.51 per share for the period, compared to $2.07 billion or $1.92 per share a year ago.

The Street was looking for earnings of $2.26 per share for the quarter.

EBIT-adjusted climbed 13.3 percent to $2.84 billion from prior year's $2.51 billion. EBIT-adjusted margin improved 1 percentage point year-over-year to 6.3 percent.

GM North America or GMNA EBIT-adjusted dropped 1.3 percent from last year to $2.24 billion, while its margin grew 0.3 percentage point to 6.1 percent.

GM International or GMI EBIT-adjusted climbed 25.4 percent year-over-year to $278 million.

Revenue for the quarter dropped 5.1 percent to $45.29 billion from last year's $47.70 billion, and missed the market estimate of $46.04 billion.

In the U.S., the company said it achieved highest market share since 2015 with low inventory, low incentives, and strong pricing.

In the pre-market activity, GM shares were trading at $82.90, up 4.38 percent.

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