General Motors (NYSE:GM) is pivoting from a year of heavy restructuring toward a record-setting 2026, unveiling a $6 billion share repurchase authorization and a 20% dividend hike even as it absorbed a massive $7.2 billion charge to realign its electric vehicle ambitions.
The Detroit automaker reported full-year 2025 net income of $2.7 billion on Tuesday, a figure heavily weighed down by a fourth-quarter net loss of $3.3 billion stemming from a strategic shift in EV capacity and changes in federal policy.
Despite the quarterly loss, the underlying strength of GM’s internal combustion engine (ICE) business remained evident.
The company reported a full-year EBIT-adjusted profit of $12.7 billion, with fourth-quarter adjusted earnings coming in at a healthy $2.8 billion.
The $7.2 billion in special charges represents an aggressive cleanup of the balance sheet, as CEO Mary Barra moves to harmonize manufacturing capacity with a slower-than-expected pace of EV adoption and a shifting regulatory landscape in Washington.
The centerpiece of the announcement was a robust 2026 outlook that suggests the automaker's "year of execution" is paying off.
GM expects 2026 net income to reach between $10.3 billion and $11.7 billion, with EBIT-adjusted profit climbing as high as $15 billion.
To support this growth, the company plans capital expenditures of $10 billion to $12 billion, focusing on high-margin trucks and SUVs alongside a more disciplined rollout of the Ultium battery platform.
Investors were further rewarded by a 20% increase in the quarterly dividend to $0.18 per share.