Mary Barra, CEO of General Motors (GM), attended the annual Allen and Co. Sun Valley Media and Technology Conference in Idaho on July 8, 2025. GM reported strong financial results for 2025, which led to a record high stock price on Tuesday. The company exceeded earnings expectations and forecasted a 20% increase in dividends along with a new $6 billion stock buyback authorization for 2026.
In the context of the U.S. auto industry’s slowing sales and rising political tension, GM’s performance attracted greater investor interest compared to its rivals, Ford Motor and Stellantis. Analysts have highlighted GM’s strong execution, resilience, and high-quality earnings amid challenging market conditions.
For 2025, GM recorded net income of $2.7 billion attributable to stockholders, translating to earnings per share of $3.27. Adjusted earnings before interest and taxes were reported at $12.7 billion, or $10.60 per share, coupled with adjusted automotive free cash flow of $10.6 billion.
The company anticipates facing increased costs from tariffs and inflation, projected at $3.5 billion and $1.25 billion, respectively, in 2026. To mitigate these challenges, GM expects to generate savings from regulatory policies and a reduction in electric vehicle losses.
GM’s improved financial circumstances have supported significant cash flow, exceeding $20 billion by the end of last year. This financial stability has allowed the company to return $23 billion to shareholders through stock buybacks since late 2023, reducing the number of outstanding shares significantly.
The automaker’s strategy includes continued investments of $10 billion to $12 billion annually to expand manufacturing in the U.S. and reduce tariff exposure. GM’s guidance for 2026 indicates net income between $10.3 billion and $11.7 billion, with adjusted earnings before interest and taxes ranging from $13 billion to $15 billion.
Overall, GM’s performance sets a high benchmark for its competitors as the company navigates ongoing industry challenges while adapting its vehicle lineup and production strategies.
Source: Reported based on publicly available information from www.cnbc.com.
