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GM's EV Reset: Billions Lost, Future Reimagined
28 Jan
Summary
- GM reported $12.7 billion adjusted EBIT and $10.6 billion free cash flow for 2025.
- A $7.6 billion EV restructuring charge impacted the second half of 2025.
- Shareholders benefited from $6 billion in stock repurchases and a 20% dividend boost.
In 2025, General Motors reported substantial financial achievements, including $12.7 billion in adjusted EBIT and $10.6 billion in adjusted automotive free cash flow. The Detroit automaker also secured its highest U.S. market share in a decade, with its fourth consecutive year of market share growth attributed to low inventories and strong pricing for trucks and SUVs.
However, GM faced significant headwinds in its electric vehicle division, booking $7.6 billion in restructuring charges for the latter half of 2025. These costs stemmed from decisions like discontinuing the BrightDrop van and impairing certain EV assets, with approximately $4.6 billion expected to be settled in cash, primarily in 2026.
Despite the EV setbacks, GM generated nearly $25 billion in free cash flow over the past two years. The company returned value to shareholders by repurchasing $6 billion of stock in 2025, reducing its share count by nearly 35% since late 2023. A fresh $6 billion buyback authorization and a 20% dividend increase underscore confidence in future earnings.
