GM’s $10.6B Free Cash Flow Powers $6B Buybacks as Stock Slides 3.4%
GM’s adjusted automotive free cash flow reached $10.6B in 2025, funding $9.2B in capex, higher dividends and $6.0B in buybacks, with net automotive cash of ~$5B and leverage near 1.0x EBITDA. Shares declined 3.4% last week to $78.71, trading at trailing and forward P/E ratios of 9.06 and 6.07.
1. Free Cash Flow and Capital Allocation
In 2025, GM generated $10.6 billion of adjusted automotive free cash flow, funding $9.2 billion in capital expenditures, supporting higher dividends and executing $6.0 billion in share buybacks to bolster shareholder returns.
2. Balance Sheet Strength
GM ended the year with approximately $5 billion in net automotive cash and maintained leverage near 1.0x EBITDA, providing flexibility for strategic investments and financial stability.
3. EV Restructuring and Tariffs
The company recognized roughly $7 billion of EV-related charges and $3.1 billion from tariffs in 2025, realigning production to demand and mitigating future costs through onshoring, pricing discipline and supply chain adjustments.
4. Stock Performance and Valuation
GM shares slid 3.4% to $78.71 over the week ending Feb. 27, trading at a trailing P/E of 9.06 and a forward P/E of 6.07, reflecting investor caution despite resilient cash generation.