GM

Cyclical

General Motors

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Market Data

Financials

XBRL · SEC EDGAR

2010–2025(16yr)

Revenue

Net Income

Free CF

Metric	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$135.6B	$150.3B	$152.3B	$155.4B	$155.9B	$152.4B	$166.4B	$145.6B	$147.0B	$137.2B	$122.5B	$127.0B	$156.7B	$171.8B	$187.4B	$185.0B	-1.3%
Gross Profit	$16.8B	$19.9B	$12.0B	$20.5B	$17.8B	$24.0B	$30.0B	$30.7B	$26.4B	$26.6B	$24.9B	$26.5B	—	—	—	—	—
Gross Margin	12.4%	13.2%	7.9%	13.2%	11.4%	15.8%	18.1%	21.1%	17.9%	19.4%	20.4%	20.8%	—	—	—	—	—
Operating Income	$5.1B	$5.7B	-$30.4B	$5.1B	$1.5B	$4.9B	$9.5B	$10.0B	$4.4B	$5.5B	$6.6B	$9.3B	$10.3B	$9.3B	$12.8B	$2.9B	-77.2%
Operating Margin	3.8%	3.8%	-19.9%	3.3%	1.0%	3.2%	5.7%	6.9%	3.0%	4.0%	5.4%	7.3%	6.6%	5.4%	6.8%	1.6%	-5.2pp
Net Income	$6.2B	$9.2B	$6.2B	$5.3B	$3.9B	$9.7B	$9.4B	-$3.9B	$8.0B	$6.7B	$6.4B	$10.0B	$9.9B	$10.1B	$6.0B	$2.7B	-55.1%
Net Margin	4.6%	6.1%	4.1%	3.4%	2.5%	6.4%	5.7%	-2.7%	5.4%	4.9%	5.2%	7.9%	6.3%	5.9%	3.2%	1.5%	-1.7pp
Free Cash Flow	$2.6B	$1.9B	$2.5B	—	—	$3.9B	$7.1B	$8.9B	$6.5B	$7.4B	$11.4B	$7.7B	$6.8B	$10.0B	$9.3B	$17.6B	+88.9%
FCF Margin	1.9%	1.3%	1.7%	—	—	2.6%	4.2%	6.1%	4.4%	5.4%	9.3%	6.0%	4.3%	5.8%	5.0%	9.5%	+4.5pp
EPS (Diluted)	$4.11	$4.58	$2.92	$2.38	$1.65	$5.91	$6.00	$-2.60	$5.53	$4.57	$4.33	$6.70	$6.13	$7.32	$6.37	$3.27	-48.7%

Cash & Equiv.$20.9B

4 min read

1. THE BIG PICTURE

General Motors is currently a tale of two companies: a highly profitable legacy manufacturer of trucks and SUVs and a loss-making technology venture struggling to find its footing in the electric vehicle (EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt) market. The central tension is that the massive cash flows from the former are being consumed by the latter, evidenced by $7.9 billion in 2025 charges related to realigning EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt capacity to meet lower-than-expected consumer demand (8-K).

2. WHERE THE RISKS HIT HARDEST

The "broad and diversified portfolio" that management cites as a competitive strength (10-K Item 1) is directly threatened by slower-than-anticipated EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt adoption, which forced $7.2 billion in special charges in the final quarter of 2025 alone (8-K). Furthermore, General Motors’ "extensive manufacturing capability" (10-K Item 1) is becoming a liability; high fixed costs from labor agreements and massive property investments prevent General Motors from scaling down efficiently when sales volumes fluctuate (Risks). Finally, the strategic goal of an "integrated supply chain" is undermined by a heavy reliance on China for battery raw materials, creating a vulnerability to trade restrictions that could disrupt production (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

While General Motors reported a significant net loss of $3.31 billion in the most recent quarter, the underlying cash engine remains functional. General Motors maintains a 9.9% Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin—the second-highest in its peer group—despite having the lowest gross margin at 10.7% (Peer Benchmarking). This suggests that while accounting profits are being hit by massive non-cash impairments and special charges, the actual movement of cash through the business is more efficient than its low-margin profile suggests.

The 5.1% revenue decline in the most recent quarter is a sharp departure from the flatter -1.3% trailing-twelve-month trend (XBRL), signaling that the "realignment of electric vehicle capacity" is having an immediate impact on the top line (8-K). Short interest remains relatively low at 3.2% of the float, suggesting that while investors are wary of the growth trajectory, there is no broad consensus betting on a liquidity crisis.

4. IS IT WORTH IT AT THIS PRICE?

At a 5.5x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, General Motors trades at a 79% discount to the peer median of 26.6x (Peer Benchmarking). The market is currently pricing in a long-term growth rate of just 0.5% (CAPM analysis). This valuation is "attractively valued" only if one believes the $7.9 billion in EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt-related charges are a one-time structural correction rather than the start of a permanent margin squeeze.

The discount is justified by the $2.1 billion impairment in China and the $2.0 billion in equity losses recorded in 2024, which highlight that General Motors is losing its grip on what was once a primary growth market (Risks). However, for investors focused on yield, General Motors’s 6.4% buyback yield—the highest among its peers—provides a significant return of capital that the current share price does not seem to fully value (Peer Benchmarking).

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if the GMNA (North America) segment EBIT-adjusted stabilizes above $2.24 billion without further multi-billion dollar special charges for EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt capacity (8-K).
Cautious if the $103.9 billion net debt position begins to erode the $19.0 billion to $23.0 billion annual automotive operating cash flow guidance (XBRL).
Cautious if the "single-source dependency" for critical components cited by management results in a material production stoppage (10-K Item 1).

6. BOTTOM LINE

Structural Advantage: A dominant U.S. market position in high-margin full-size trucks and an established financing arm that provides a steady stream of retail and commercial lending revenue.

Bottom Line: General Motors is a high-yield value play whose stock is being penalized for the immense capital friction required to transition a legacy industrial giant into a software-defined EVEVEnterprise Value — the total cost to buy the whole business: market cap plus net debt company.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

EV Strategy and Adoption: The transition to electric vehicles is hindered by slower consumer demand and policy changes, forcing General Motors to record $1.6 billion and $6.0 billion in charges during the third and fourth quarters of 2025, respectively.
Fixed Cost Structure: High fixed costs from manufacturing infrastructure and labor agreements prevent General Motors from efficiently scaling down during periods of low demand, exacerbating the impact of sales volatility on profitability.
Competitive Pricing Pressure: The automotive industry’s historical excess manufacturing capacity leads competitors to use incentives and price reductions, which may force General Motors to lower prices to levels that fail to offset production costs.
Supply Chain Resilience: The need for a North American-focused supply chain for ICE and electric vehicles requires long-term commitments and higher-than-normal raw material inventory levels, where demand currently exceeds existing regional capacity.
China Market Volatility: Intense competition and a challenging operating environment in China resulted in a $2.1 billion impairment of equity interests and $2.0 billion in equity losses in 2024, with an additional $0.6 billion in charges recorded in 2025.

2. Company-Specific Risks

Autonomous Vehicle Strategy: Following the wind-down of Cruise robotaxi operations, General Motors has refocused its autonomous efforts on personal vehicles, which remains subject to risks regarding AI model training, software talent retention, and regulatory compliance.
Pension Funding Obligations: Future funding requirements for defined benefit pension plans are sensitive to financial market performance and interest rate fluctuations; a decrease in the discount rate or lower-than-expected asset returns would increase required contributions.
Joint Venture Dependencies: General Motors relies on joint ventures for battery manufacturing and operations in China and Korea, limiting its control over decision-making and requiring the sharing of benefits with partners who may have diverging strategic priorities.
Cybersecurity and Connected Vehicles: The integration of complex information technology systems into vehicles creates risks of unauthorized access, which could compromise customer safety, lead to regulatory penalties, and damage the brand’s reputation.

3. Regulatory/Legal Risks

Emissions and Fuel Economy Standards: Evolving global regulations regarding GHG emissions and fuel economy may force General Motors to limit the sale of profitable ICE products, pay penalties, or purchase emissions credits from competitors.
Data Privacy Compliance: General Motors is subject to complex, punitive regulations such as the California Consumer Privacy Act, the EU’s General Data Protection Regulation, and the EU’s Artificial Intelligence Act, which increase operating costs and complexity.
Product Safety Recalls: Government safety standards mandate that General Motors remedy defects through recalls, which can involve significant costs for parts and labor, particularly when issues affect global platforms.
Tax Audits and Legislation: General Motors is subject to ongoing audits by the IRS and other authorities; unfavorable resolutions or changes in tax laws, such as the Inflation Reduction Act, could adversely affect the effective tax rate and cash flows.

4. Financial Impact Map

EV Strategy and Adoption → Results of Operations / GMNA Segment → $7.9 billion in charges recorded for the year ended December 31, 2025. Fixed Cost Structure → Profitability / Operating Margins → High fixed costs from collective bargaining agreements limit flexibility to adjust personnel costs to changes in product demand. China Market Volatility → Equity Income / Net Income → $2.1 billion impairment of equity interests and $2.0 billion in equity losses in 2024, plus $0.6 billion in charges in 2025. Supply Chain Resilience → Working Capital / Inventory → Strategic sourcing initiatives require holding higher-than-normal levels of raw materials inventory. Pension Funding → Liquidity / Cash Flows → Weak performance of financial markets or declining interest rates could significantly increase future contribution requirements.