GM: FY25 Deep Dive
FY25 revenue $185.0B (-1.3%) — operating income $2.91B (-77% on EV write-downs + restructuring); net income $2.70B (-55%); diluted EPS $3.27. FCF turned positive +$11.07B (vs -$5.98B FY24) as capex moderated. Buyback $6.04B. Total debt $130.3B. Deutsche Bank upgraded Hold→Buy April 14; UBS $102→$105; Goldman $104→$91 trim. Mixed signals.
Key Takeaways
General Motors closed fiscal 2025 (calendar year ended December 31, 2025) at $185.0 billion of revenue, down 1.3% YoY. Operating income compressed -77% to $2.91 billion (from $12.78B FY24) on EV strategy write-downs, restructuring charges, and Cruise (autonomous unit) wind-down costs. Net income $2.70 billion (-55%); diluted EPS $3.27 (vs $6.37 FY24). Free cash flow turned strongly positive at +$11.07 billion (vs -$5.98B FY24) as capex moderated to $15.79 billion (-40% from $26.1B FY24). Capital allocation: $6.04B buybacks + $657M dividends = $6.70B return. Total debt $130.3B (held). Sell-side coverage in Feb-April 2026 window: Deutsche Bank upgraded Hold → Buy on April 14 ($83 → $90); Wolfe Research upgraded Peer Perform → Outperform March 25 ($96); UBS $102 → $105 (Buy); Benchmark $65 → $90 (Buy, +$25 largest); Goldman $104 → $91 (Buy, modest trim); Evercore $85 → $95.
Main business structure
GM operates 4 segments:
| Segment | Approx FY25 Share |
|---|---|
| GM North America (GMNA) | ~80% — the profit engine |
| GM International | ~5% |
| GM Financial | ~10% |
| Cruise (autonomous, winding down) | ~0% |
GMNA: Chevy + GMC + Cadillac + Buick. Pickup trucks (Silverado, Sierra) the structural profit driver. Full-size SUV (Tahoe, Yukon, Suburban) the second-highest-margin product.
EV strategy reset: GM has moderated EV pace — slowed Ultium platform rollout; reduced Cruise to dormant. Reflects industry-wide EV demand-supply rebalancing.
Key core metrics (3-year trend)
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Revenue ($B) | 171.84 | 187.44 | 185.02 |
| Operating income ($B) | 9.30 | 12.78 | 2.91 |
| Net income ($B) | 10.13 | 6.01 | 2.70 |
| Diluted EPS | $7.32 | $6.37 | $3.27 |
| FCF ($B) | -3.68 | -5.98 | +11.07 |
| Buybacks ($B) | 11.12 | 7.06 | 6.04 |
The FY25 FCF reversal (+$11.07B vs -$5.98B FY24) is the structural inflection — capex moderation post-EV-pace-reset.
Market evaluation
Sell-side coverage (Feb-April 2026):
- Deutsche Bank: Hold → Buy April 14 ($83 → $90)
- Wolfe Research: Peer Perform → Outperform March 25 ($96)
- UBS: $102 → $105 April 14 — Buy maintained
- Goldman Sachs: $104 → $91 April 14 — Buy maintained, -$13 trim
- Benchmark: $65 → $90 Feb 10 — Buy, +$25 (largest single raise)
- Evercore ISI: $85 → $95 Feb 2 — OP
- Jefferies: $85 → $97 Feb 2 — Hold
The pattern: 2 upgrades + 5 PT raises + 1 modest trim. Mixed but mostly bullish.
FY25 corporate structure: EV reset + capex moderation = FCF inflection
FY25 was the EV strategy reset year for GM: revenue -1%, operating income -77% on charges, but FCF flipped positive to +$11B as capex moderated. The structural read is that GM's profit engine (GMNA pickups + SUVs) remains intact while EV-related capex / impairments cleared. The Q1 FY26 earnings print this week is the proximate event for measuring continued FCF generation + EV demand commentary + tariff exposure.