General Motors Increases Payouts to Shareholders
General Motors (GM) has announced a 25% increase in its quarterly dividend, raising it to $0.15 per share—matching its competitor Ford Motor. Additionally, GM has introduced a $6 billion stock buyback program, with $2 billion set to be repurchased during the second quarter of 2025.
Strengthening Investor Confidence
Despite a decline in GM’s stock by over 12% in 2025, the company remains focused on delivering value to shareholders. CEO Mary Barra emphasized three key financial goals:
- Investing in sustainable growth
- Maintaining a strong balance sheet
- Returning capital to shareholders
Since 2023, GM has executed $16 billion in stock buybacks, reducing its outstanding shares below 1 billion, as planned by CFO Paul Jacobson.
Stock Buyback Program Details
- $2 billion will be repurchased through an accelerated share repurchase (ASR) program.
- The total shares repurchased will depend on the stock’s average price during the buyback period.
- Financial institutions JPMorgan and Barclays are managing the program.
- $4.3 billion remains available for future stock repurchases.
GM’s 2025 Financial Projections
GM has released its financial outlook for 2025, estimating:
- Net income between $11.2 billion and $12.5 billion
- Adjusted EBIT (earnings before interest and taxes) ranging from $13.7 billion to $15.7 billion
- Free cash flow projected between $11 billion and $13 billion
Navigating Industry Challenges
Despite slowing automotive sales, economic uncertainty, and regulatory pressures, GM remains financially stable. CFO Paul Jacobson reassured investors that the company is well-positioned to adapt to market conditions and maximize shareholder value.
With this latest move, GM continues to focus on long-term growth, shareholder returns, and financial resilience in a competitive auto industry.