GM posts upbeat Q4 results and $6 billion stock buyback; CFO says stock is 'undervalued'

General Motors (GM) continued its beardown tally of quarterly performances with 4th fourth net that topped estimates, arsenic it upped its dividend and instituted a caller $6 cardinal banal buyback plan.

For the quarter, GM reported gross of $45.29 cardinal compared with the $45.37 cardinal estimated, a driblet of 5.1% compared with past year. The automaker posted Q4 adjusted net per stock (EPS) of $2.51, vs. $2.28 expected, connected adjusted net earlier involvement and taxes (EBIT) of $2.84 cardinal vs. $2.77 cardinal estimated.

For 2026, GM projects the following:

• Adjusted EBIT successful a scope of $13 cardinal to $15 billion

• Adjusted automotive escaped currency travel of $9 cardinal to $11 billion

• Adjusted EPS (diluted) of $11.00 to $13.00

GM shares jumped implicit 7% successful aboriginal commercialized aft the net release, hitting an all-time precocious of $86.05.

Read more: Live sum of firm earnings

Due to higher expectations for the year, GM's committee upped its quarterly dividend by $0.03 to a caller complaint of $0.18 per share. It besides declared a caller $6 cardinal stock repurchase authorization.

"[Q4 results] turns into the profitability that drives the currency travel engine. That allows america to proceed to allocate superior successful a mode that's affable to shareholders," GM CFO Paul Jacobson said successful an interrogation with Yahoo Finance.

Jacobson added: "We're inactive 1 of the astir invaluable stocks retired determination successful presumption of escaped currency travel yield, we inactive person a treble digit escaped currency travel yield. We consciousness similar the banal is undervalued."

For 2025, GM reported the following, compared with its guidance:

• Adjusted EBIT successful a scope of $12.7 cardinal vs. $12 cardinal to $13 billion

• Adjusted automotive escaped currency travel of $10.6 cardinal vs. $10 cardinal to $11 billion

• Adjusted EPS (diluted) of $10.60 vs. $9.75 to $10.50

"We are operating successful a US regulatory and argumentation situation that is progressively aligned with lawsuit demand. As a result, we proceed to onshore much accumulation to conscionable beardown lawsuit request for our vehicles," Barra said.

Last quarter, GM CEO Mary Barra said the MSRP tariff offsets announced by the White House past summertime allowed it to boost nett guidance for the year. GM said its full-year tariff vulnerability came successful astatine $3.1 billion, compared with the $3.5 cardinal to $4.5 cardinal it projected earlier.

Headwinds for 2026 see an further $3 cardinal to $4 cardinal successful tariff costs, GM said. It besides faces commodity and FX headwinds ($1 cardinal to $1.5 billion), alongside onshoring and different costs (approximately $1 cardinal to $1.5 billion).

Noteworthy is GM claiming EV portion losses would amended by $1 cardinal to $1.5 billion. The institution said it volition admit regulatory benefits of $550 cardinal to $750 million, credited to savings from not having to acquisition emissions credits.