General Motors Company (NYSE:GM) kicked off Tuesday with a solid quarterly beat and fresh shareholder returns, boosting its dividend and authorizing a new share repurchase program.
The automaker also flagged a more cautious outlook as it recalibrates its EV strategy, while Ford Motor Co. (NYSE:F) surfaced in reports as a potential partner in talks involving General Motors.
Quarterly Metrics
General Motors reported fourth-quarter adjusted earnings per share of $2.51 (+30.4% year over year), beating the analyst consensus estimate of $2.20. Quarterly sales of $45.287 billion missed the Street view of $45.804 billion.
Quarterly adjusted EBIT soared 13.3% to $2.843 billion. The adjusted EBIT margins were (7.3)%, compared with (6.2)% in the year-ago period.
The company exited the quarter with cash and equivalents worth $15.062 million. Inventories were $14.472 billion.
“For several years now, GM’s strong brands and winning vehicles, as well as our technology-driven services and operating discipline, have delivered consistently strong cash generation,” said Mary Barra, Chair and CEO.
“This has allowed us to execute all phases of our capital allocation strategy, from investing in the business and our people, to maintaining a strong balance sheet and returning capital to shareholders,” Barra added.
Fourth-quarter net income fell by more than $7.2 billion due to special charges, largely tied to an EV-capacity realignment and related investment changes. The company said it is adjusting to expected softer consumer EV demand and U.S. policy shifts, including the end of consumer incentives and less-stringent emissions rules.
Dividend Hike
General Motors announced today that its Board of Directors has approved a 3 cents per share increase in the quarterly common stock dividend rate to 18 cents per share.
It is payable on March 19, 2026, to holders of common stock at the close of trading on March 6, 2026.
The company also announced that its Board has approved a new $6 billion share repurchase authorization.
As of December 31, 2025, the company had 904 million shares outstanding, down from 995 million at the end of 2024 and 1.2 billion at the end of 2023.
Partnership With Ford
Ford Motor Co. (NYSE:F) and General Motors are reportedly in discussions to provide a financial lifeline to save the bankrupt auto parts supplier First Brands Group.
The potential deal involves the automakers making advance payments for the products they are set to receive. This would provide First Brands with much-needed cash to continue its operations.
The talks are reportedly in the final stages, with the deal’s success still uncertain, reported the Financial Times on Tuesday.
Outlook
General Motors on Tuesday forecast adjusted earnings of $9.75 to $10.50 a share for fiscal 2026, below Wall Street expectations of $11.73.
The company said it expects fiscal 2026 GAAP earnings of $8.30 to $9.05 a share, below the analyst consensus estimate of $10.04.
GM Price Action: General Motors shares were up 3.87% at $82.50 during premarket trading on Tuesday. The stock is approaching its 52-week high of $85.18, according to Benzinga Pro data.
Photo by Jonathan Weiss via Shutterstock
