General Motors is forecasting a stronger financial performance in 2026, despite experiencing significant financial setbacks related to electric vehicles (EVs) in 2025.

The company reported a full-year net income of $2.7 billion for 2025, representing a 55 percent decline, while adjusted Earnings Before Interest and Taxes (EBIT) came in at $12.7 billion, in line with expectations.

The fourth quarter of 2025 proved particularly challenging, with GM recording a net loss of $3.3 billion. This was largely driven by $7 billion in special charges tied to major restructuring initiatives.

Strategic Shift Back to ICE and Hybrids

The bulk of the special charges were linked to restructuring operations in China and reconfiguring manufacturing capacity in North America.

GM redirected resources away from electric vehicle production toward Internal Combustion Engine (ICE) models, including hybrid vehicles, reflecting a strategic recalibration in response to slower-than-expected EV demand and cost pressures.

This pivot underscores the automaker’s near-term focus on profitability and operational flexibility, prioritizing vehicle segments that continue to deliver stronger margins.

Optimistic 2026 Outlook and Worker Profit Sharing

Buoyed by the anticipated returns from its revised strategy, GM has significantly raised its financial outlook for 2026.

The company now forecasts net income between $10.3 billion and $11.7 billion, with adjusted earnings projected to range from $13 billion to $15 billion.

The improved outlook also translated into strong profit-sharing results, with more than 47,000 hourly workers receiving payments of $10,500 each.

CEO Mary Barra praised the company’s performance, highlighting GM’s ability to adapt its strategy while continuing to reward employees and position the business for sustained profitability.