GM Stock Pops on Strong 2025 Results -- Here's Why the Best Could Be Yet to Come

General Motors (NYSE: GM) recently reported its fourth-quarter earnings, missing gross expectations. But that's the grade of the atrocious news, and the banal rallied aft the company's results were announced.

Not lone did GM bushed expectations for bottom-line profitability, but absorption besides provided fantabulous guidance, accrued superior returns to shareholders, and offered a precise affirmative outlook for the adjacent fewer years. Here's a rundown of the automaker's results and wherefore I deliberation the banal could spell overmuch higher successful the future.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

As mentioned, connected the header numbers, GM produced mixed results, missing connected gross but beating connected earnings. But looking beyond the headlines, it's rather wide that the concern is doing well. And connected the taxable of revenue, it's worthy noting that the national EV credits expired astatine the extremity of the 3rd quarter, truthful this is the archetypal reported play successful which the EV marketplace didn't payment from authorities support.

For 1 thing, not lone did GM bushed expert expectations for earnings, but adjusted EPS of $10.60 was supra the precocious extremity of GM's ain guidance range. And aft factoring successful the effects of one-time charges related to a displacement successful the company's EV strategy, EBIT and automotive escaped currency travel came successful amended than the company's guidance suggested.

Management besides announced a 20% summation successful the quarterly dividend and a caller $6 cardinal stock repurchase authorization. The second has been the largest constituent of GM's superior instrumentality successful caller years, and investors look blessed that the institution is continuing to beryllium aggressive. After all, the institution has reduced its outstanding stock number by 38% since it began repurchasing successful 2022, and the caller $6 cardinal buyback is astir 8% of its outstanding shares astatine the existent price.

Perhaps the biggest crushed the banal reacted positively to net is management's outlook. The archetypal 2026 guidance calls for net of $11 to $13 per stock for the afloat year, which astatine the midpoint would correspond 13% maturation implicit 2025's already beardown results.

In a CNBC interrogation pursuing the net release, CEO Mary Barra said that artillery exertion improvements volition assistance the institution execute profitability with the company's electrical vehicles "quicker than galore radical think," and that the institution volition proceed to put successful EVs, but astatine a little level of capex than previously. GM's EV income accrued 48% twelvemonth implicit year, and it is present the wide fig two, down lone Tesla (NASDAQ: TSLA) successful EV production.