General Motors Company Q4 FY2025 earnings call

• 2025 was exceptional with full-year EBIT adjusted at the high end of guidance range, 54% total return for investors, and highest full-year market share in US in a decade with fourth consecutive year of market share growth. • Product highlights: GM led in full-size pickups and SUVs, Chevrolet Trax and others won awards, Cadillac Escalade IQ won awards; vehicle and technology solutions for commercial etc. helped lead US fleet segment. • Adaptability: Proactively managed net tariff exposure, sold EV plant share and pivoted to ICE production in response to EV demand slowdown. • Future plans: Expect full-year EBIT adjusted margins in North America back to 8%-10% range; OnStar had record 12 million subscribers, Super Cruise growing; China business turnaround with new energy vehicles ~50% of sales and profitable; US production to rise with new models; technology improvements like sixth-gen V8, AI/robotics in manufacturing, LMR battery and SDV 2.0 architecture planned.

North America delivered EBIT adjusted of $2.2 billion and margins 6.1%. GM International, excluding China equity income, delivered EBIT adjusted of $200 million. GM Financial's fourth-quarter EBT adjusted was down slightly year over year at $600 million, and full-year EBT adjusted was $2.8 billion within their guidance of 2.5 to $3 billion.

• 2026 EBIT adjusted expected 13-15 billion, EPS diluted adjusted 11-13 per share, adjusted automotive free cash flow 9-11 billion. • Tariff gross costs expected 3-4 billion. • North America EBIT adjusted margins back to 8%-10% range. • OnStar and Super Cruise business growth, deferred revenue expected ~7.5 billion. • Capital returns: Dividend increased by 20%, new share repurchase authorization of $6 billion. • China and international operations expected profitable.

• Trade and tariff dynamic changes. • EV market demand lower than expected. • Greenhouse gas emission standards regulatory changes. • Commodity price fluctuations (aluminum, copper etc.). • Foreign exchange movements. • Semiconductor supply risks.

Q: Address assumption on pricing.

A: Going into 2026, not modeling increase, just annualization of 2025's pricing, confident with vehicles and new truck launches.

Q: Dynamics of product portfolio and fixed cost base.

A: Have right portfolio with strong ICE and EV platform, investing in cost reduction for EVs, will have hybrids in key segments, EV adoption will grow with charging infrastructure.

Q: Inventory and cash flow.

A: Inventory discipline continued, no significant buildup contemplated, helps cash generation.

Q: GM Financial's industrial bank.

A: Conditional approval to bring down cost of funds, complementary to funding platform.

Q: Hybrid portfolio and software expense.

A: Hybrids in key segments, software expense split ~50/50 with onshoring ramp-up costs offsetting over time.

Q: Tariff and Super Cruise expansion.

A: Assume lower South Korea tariff, Super Cruise expansion with regulatory work ongoing.

Q: Warranty cost benefit.

A: Warranty costs moving in right direction, L87 engine fixes mitigating issues.

Q: Emissions regulation and international operations.

A: Emissions regulation savings from CAFE, international operations seeing improvement in regions like South America.