GM kicks off Q4 auto earnings season with highly anticipated report

General Motors (GM) investors are looking for the Big Three automaker to proceed its beardown tally of quarterly performance, with 4th fourth results connected platform for Tuesday morning. But challenges stay for the automaker successful 2026 arsenic tariffs and its EV concern could beryllium a resistance connected performance.

For the quarter, analysts expect GM to station Q4 gross of $45.37 billion, down 5% compared to the $47.70 cardinal reported past year. GM is expected to study Q4 adjusted EPS of $2.28, connected adjusted EBIT of $2.77 billion.

In presumption of guidance, GM upped its full-year 2025 targets erstwhile it reported Q3 net successful October:

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

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

• Adjusted EPS (diluted) of $9.75 to $10.50 diluted

At the time, 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 is projected to beryllium astir $3.5 cardinal to $4.5 billion, assuming existent levy rates stay the same.

Earlier successful January, GM said Q4 US income slipped 6.9% from a twelvemonth agone to conscionable implicit 703,000, but were up 5.5% successful 2025 to 2.853 cardinal vehicles, making it the top-selling automaker successful the US.

GM said full-size pickup income were up for the sixth consecutive year, the champion successful 20 years. Sales of full-size SUVs similar the Tahoe, Suburban, and Yukon besides propelled GM to a class triumph successful the conception for the 5th consecutive year.

However, GM said EV income successful Q4 fell a whopping 43% to conscionable implicit 25,000 units, weighing connected results. GM said a "pull ahead" successful EV income successful Q3 earlier the expiration of the national EV taxation recognition wounded Q4 results.

As a result, earlier this period GM took an further $6 cardinal complaint to its EV business, citing softer-than-expected request for EVs and the nonaccomplishment of the national EV taxation recognition astatine the extremity of Q3 2025.

GM said charges see non-cash impairments and different non-cash charges of astir $1.8 billion, arsenic good arsenic currency impacts from supplier settlements, declaration cancellation fees, and different charges of $4.2 billion. GM said the charges won't impact its EBIT-adjusted (earnings earlier involvement and taxes) results.

GM's complaint taken this period comes connected apical of the $1.6 cardinal it took successful Q3 pursuing a "reassessment" of its EV business, giving it a full EV writedown of $6.6 billion.

Last year, GM said it would walk an further $4 cardinal successful US works investments, not lone to up home capacity, but besides to nutrient much gas-powered and hybrid vehicles.