General Motors (GM) exceeded Q4 earnings estimates, reporting revenue of $45.29 billion and adjusted EPS of $2.51. GM projects 2026 adjusted EBIT of $13-15 billion and a $6 billion stock buyback plan. Shares rose 7% post-earnings release. GM raised dividend to $0.18 per share and declared a new buyback plan.
CEO Mary Barra noted GM’s alignment with customer demand, onshoring more production. Last quarter, GM raised profit guidance due to White House tariff offsets. Headwinds for 2026 include $3-4 billion in tariff costs, commodity and FX headwinds, and onshoring costs. GM expects improved EV unit losses and regulatory benefits.
GM took a $6 billion charge to its EV business due to softer demand and loss of federal EV tax credit. Total EV write-down now at $6.6 billion. GM anticipates smaller EV-related charges in 2026. CFO Jacobson sees slower EV adoption path but continues driving cost savings. GM expects less than 100K EV sales in the US.
Q4 US sales slipped 6.9% for GM but rose 5.5% in 2025 to 2.85 million vehicles. Full-size pickup and SUV sales drove GM to the top US automaker spot. Despite strong performance, Q4 EV sales dropped 43% to 25,000 units. A “pull ahead” in Q3 hurt Q4 EV sales. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping by over 500 points. Analysts attribute the decrease to concerns over rising inflation and slowing economic growth.
2. The United Nations released a report stating that global temperatures are on track to exceed the 1.5 degree Celsius limit set by the Paris Agreement. The report warns of dire consequences if immediate action is not taken to reduce greenhouse gas emissions.
3. The CDC announced that the Delta variant of COVID-19 now accounts for more than 80% of new cases in the United States. Health officials are urging unvaccinated individuals to get vaccinated to help prevent the spread of the highly contagious variant.
Read more at Yahoo Finance: GM stock hits all-time high on upbeat results, buyback plan; CFO says stock is ‘undervalued’