GM narrows 2026 outlook, approves US$20 billion share buyback

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Photo by LARS HAGBERG/AFP via Getty ImagesGeneral Motors Co. narrowed its full-year profit forecast and said it will buy back another US$20 billion in stock, reflecting strong cash flows even as the carmaker’s sales are softening.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Detroit-based company on Tuesday raised the low end and cut the high end of its previous 2026 profit outlook. It now sees 2026 adjusted earnings before interest and taxes in a range of US$14.5 billion to US$15.5 billion, compared with the US$14 billion to US$16 billion range it projected in July.This advertisement has not loaded yet, but your article continues below.Steady income from high-margin SUVs and trucks is warring with a decline in the company’s overall delivery volumes in the U.S., by far its largest and most lucrative market. Affluent and loyal customers show few signs of trading down from GM’s biggest and priciest vehicles, even as the strain of fuel price spikes and rising interest rates weighs on sales of cheaper models.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againShares of the company fell 6.1 per cent in premarket trading to US$77.70 as of 6:51 a.m. in New York.GM is betting that bifurcated trend is here to stay with the launch of all-new versions of its Chevrolet Silverado and GMC Sierra pickups later this year. The company plans to expand production of the trucks and also build more of them powered with premium V-8 engines.Following costly writedowns from ill-timed bets on electric vehicles and self-driving cars, chief executive Mary Barra has hewed close to GM’s core business lines and rewarded shareholders with buybacks. The company’s stock is trading near all-time highs and up 42 per cent from a year ago, although it’s gained only about two per cent so far this year as of the close on Monday.This advertisement has not loaded yet, but your article continues below.GM’s board approved the new round of buybacks, which will be funded on an ongoing basis over a multi-year period of time. It’s the first share repurchase announcement since a US$6 billion plan disclosed in January and adds to the US$29.5 billion already spent by the company buying back its shares since 2023.Instead of chasing untested technologies or investing aggressively in overseas markets, GM is focused on growth in areas such as making parts for Lockheed Martin Corp.’s missiles and software-based systems like its OnStar Telematics unit and Super Cruise hands-free driving.The company made US$4.1 billion in Ebit in the third quarter, slightly above a consensus estimate of US$4.02 billion. Earnings per share came to US$3.70 a share, also above the US$3.56 per share consensus estimate. Its revenue totalled US$50 billion in the three months to Sept. 30.The company’s automotive free cash flow, which enables the share buyback plan, rose 40 per cent to US$5.9 billion.GM made US$32 million in China in the quarter, down 60 per cent from a year ago.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.