By Kalea Hall and Nathan Gomes
Jan 27 (Reuters) – General Motors reported a higher fourth-quarter core profit on Tuesday on stronger sales of its affordable crossover SUVs and pickup trucks through the year, sending the shares of the Detroit automaker up about 6% in premarket trading.
Its pre-tax earnings on an adjusted basis rose about 13% to $2.84 billion compared with about $2.51 billion a year ago.
The company said it expects an annual adjusted core profit of $13 billion to $15 billion, a range whose midpoint exceeded analysts’ expectation of $13.39 billion, according to LSEG data.
GM’s net income was impacted by a $6 billion charge due to the electric-vehicle pullback. A big share of the charge is tied to contract cancellations and settlements with suppliers, who had planned for much higher production volumes before the market turned.
The gains during the quarter were driven by demand from its core North American business, where it posted earnings of $2.24 billion, marginally lower than a year ago.
In China, the automaker trimmed losses to $513 million, down from more than $4 billion a year ago, as GM restructures its business in the region after losing market share to Chinese rivals over the past few years.
Demand for new electric vehicles has also slowed during the year as incentives were scaled back and tariffs pushed vehicle prices higher, with average transaction prices hovering near $50,000.
Despite the pressure, strong consumer demand for some of GM’s gas-powered trucks and SUVs helped it hold on to its top spot for new vehicle sales in 2025, although higher borrowing costs have been denting affordability, mainly for first-time buyers.
The company, however, was optimistic for 2026 as it backed its EV strategy, raised its quarterly dividend payout by 20% and approved a new $6 billion share buyback program.
Its overall quarterly revenue fell by 5.1% to about $45.3 billion from a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Arun Koyyur)
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