Half empty or half-full? GM managed to beat Wall Street expectations for the fourth quarter of 2025, but still saw revenues tumble by more than 5%. And with North America largely responsible for that dip, union workers will see their own profit-sharing checks fall for the year. As Headlight.News reports, GM CEO Mary Barra promised to deliver a big upturn in 2026.
Products like the Chevrolet Equinox helped GM gain share in 2025, but revenues still fell for both Q4 and the full year.
General Motors officials are vowing to have a big year in 2026, with plans to boost payments to shareholders despite strains on the company’s balance sheet. Union workers, who will take a big hit to their upcoming profit-sharing checks, are also leaning on management to deliver better number.
The largest of the Detroit automakers did manage to beat Wall Street expectations on the earnings front for the fourth quarter, but that was despite seeing revenue dip 5.1% for the October-December period.
GM’s 2026 financial guidance includes anticipated capital spending of $10 billion to $12 billion dollars, a larger quarterly dividend rate, which went from 3 cents per share to 18 cents per share and a continuation of the company’s share repurchase authorization. The automaker expects to spend $6 billion from its kitty to buy back stock.
Barra says GM in good spot
CEO Barra intends to move ahead with GM’s stock buyback program while also increasing shareholder dividends.
“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, Chairman 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.”
Despite some challenging headwinds – including the still-uncertain tariff policies of the Trump administration, Barra added that, “We believe that formula is sustainable, which is why we’re increasing our dividend and planning future share repurchases.”
Barra noted GM achieved its highest full-year market share in a decade, 2025 bringing its fourth consecutive year of market share growth.
Report reflects strain on GM profitability
The slowdown in EV sales is causing problems for GM’s plan to go all-electric.
GM’s financial report, however, also reflected some of the stresses GM faces as it battles tariffs and the affordability crisis now settling over the auto industry. Compounding matters, the carmaker’s focus on EVs has run head-on into the Trump administration’s war on electric vehicles.
GM beat Wall Street’s fourth-quarter earnings expectations but the automaker missed revenue expectations. Revenue fell by 5.1 % in the fourth quarter and by 1.3 % for the full year.
The Fourth-quarter 2025 net income attributable to stockholders was a loss of $3.3 billion and EBIT-adjusted was $2.8 billion.
Profit-sharing hit hard
GM workers will receive markedly downsized profit-sharing checks.
Fourth-quarter profits were reduced by more than $7.2 billion in special charges driven primarily by a realignment of electric vehicle capacity and investments to adjust to expected declines in consumer demand for EVs, and in response to U.S. Government policy changes including the termination of consumer incentives and the reduction in the stringency of emissions regulations.
The pressure on GM’s earnings will be felt by GM’s workers, who will receive less in profit sharing even as prices continue to rise. Eligible General Motors hourly workers will receive checks of $10,500 this year, 27% less than the record payments the automaker made to employees in 2025. It was also the smallest profit-sharing check since the pandemic year of 2021.
GM officials confirmed the lump-sum payments to roughly 47,000 U.S. employees on Tuesday, Jan. 27, the same day CEO Mary Barra issued a letter to shareholders, covering the company’s 2025 financial performance and future outlook.
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