Results

GM - General Motors Company

10/20/2026 | Press release | Distributed by Public on 10/20/2026 15:01

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Basis of Presentation This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying condensed consolidated financial statements and the notes thereto, and the audited consolidated financial statements and notes thereto included in our 2025 Form 10-K.
Forward-looking statements in this MD&A are not guarantees of future performance and may involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements" section of this MD&A, Part I, Item 1A. Risk Factors of our 2025 Form 10-K, and Part II, Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 for a discussion of these risks and uncertainties. Except for per share amounts or as otherwise specified, dollar amounts presented within tables are stated in millions. Certain columns and rows may not add due to rounding.
Overview Our vision for the future is a world with zero crashes, zero emissions, and zero congestion. We will adapt to customer preferences while executing our growth-focused strategy to invest in internal combustion engine (ICE) vehicles, EVs, hybrids, personal AV technology, software-enabled services, and other new business opportunities. To support strong margins and cash flow, we continue to prioritize profitable ICE vehicles, such as trucks and SUVs. We plan to execute our strategy with a steadfast commitment to good corporate citizenship through more sustainable operations and a leading health and safety culture.
Our financial performance continues to be driven by the strength of our vehicle portfolio, including high margin full-size pickup trucks and SUVs, strong consumer demand for our products, and the execution of our core business strategy. We remain focused on maintaining an efficient cost structure and pricing discipline. We continue to prioritize driving down costs to improve profitability and are aligning our EV capacity and manufacturing footprint. We are monitoring industry pricing pressures, changing interest rates, inflation, warranty claims, consumer demand trends, geopolitical tensions, and changes to the regulatory environment, including with respect to tariffs, fuel economy standards, and emissions regulations.
In 2025, the U.S. and other governments implemented new tariffs relevant to GM and its suppliers, including tariffs on vehicles and parts imported into the U.S. The tariff environment remains highly dynamic, and the specific tariffs applicable to goods imported by GM and its suppliers continue to evolve, including with respect to imports under the U.S.-Mexico-Canada Agreement and other trade agreements. We have acted with urgency and discipline to maintain strong positioning within the industry. On February 20, 2026, the U.S. Supreme Court concluded that the International Emergency Economic Powers Act (IEEPA) did not authorize the imposition of tariffs. In the nine months ended September 30, 2026, we recorded net favorable adjustments of $0.7 billion primarily due to previously charged IEEPA tariffs that are refundable. Based on the current tariff environment, we estimate that impacts to EBIT-adjusted could range from $2.5 billion to $3.5 billion for the year ending December 31, 2026 and may be subject to change if new tariffs or changes to existing tariffs arise. Refer to Part I, Item 1A. Risk Factors in our 2025 Form 10-K for a full discussion of the risks associated with the global tariff environment.
During the year ended December 31, 2025, we recorded charges of $7.9 billion in GMNA related to our EV strategic realignment. In the three months ended September 30, 2026, we recorded an insignificant amount of additional net charges. For the nine months ended September 30, 2026, net charges were $3.6 billion, primarily related to $2.5 billion for ongoing commercial negotiations with our supply base and joint venture partners, $1.3 billion of losses on supply agreements, and $0.5 billion associated with compliance-related assets, net of $0.7 billion of recoveries under a cost sharing arrangement. Of these charges, $2.7 billion will have a cash impact when paid. We incurred cash outflows of $4.2 billion related to these charges in the nine months ended September 30, 2026. We expect additional charges in the year ending December 31, 2026, and while circumstances may change in the future, we believe we have substantially completed the recognition of material cash charges related to our EV strategic realignment. The charge associated with our compliance-related assets in April 2026 was due to the repeal of the EPA's endangerment finding. At September 30, 2026, the carrying amount of our compliance-related assets was $0.7 billion. Refer to the "Non-GAAP Measures" section of this MD&A for additional information. Our strategic realignment of EV capacity does not impact today's retail portfolio of Chevrolet, GMC, and Cadillac EVs currently in production, and we expect these models to remain available to consumers.
As we continue to assess our performance and the needs of our evolving business, additional restructuring and rationalization actions could be required. These actions could give rise to future asset impairments or other charges, which may have a material impact on our operating results. Refer to the "Consolidated Results" and regional sections of this MD&A for additional information.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
We face continuing market, operating, and regulatory challenges in several countries across the globe due to, among other factors, competitive pressures, our product portfolio offerings, heightened emissions standards, labor disruptions, foreign exchange volatility, evolving trade policy, automotive industry supply chains, and political uncertainty. Refer to Part I, Item 1A. Risk Factors in our 2025 Form 10-K and Part II, Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 for a discussion of these challenges.
For the year ending December 31, 2026, we expect Net income attributable to stockholders of between $8.9 billion and $9.5 billion, EBIT-adjusted of between $14.5 billion and $15.5 billion, EPS-diluted of between $9.72 and $10.72, and EPS-diluted-adjusted of between $12.75 and $13.75. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.
The following table reconciles expected Net income attributable to stockholders to expected EBIT-adjusted (dollars in billions):
Year Ending December 31, 2026
Net income attributable to stockholders $ 8.9-9.5
Income tax expense 2.0-2.4
Automotive interest income, net (0.1)
Adjustments(a) 3.7
EBIT-adjusted $ 14.5-15.5
__________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted within this MD&A for adjustment details. These expected financial results do not include the potential impact of future adjustments related to special items.
The following table reconciles expected EPS-diluted to expected EPS-diluted-adjusted:
Year Ending December 31, 2026
Diluted earnings per common share $ 9.72-10.72
Adjustments(a) 3.03
EPS-diluted-adjusted $ 12.75-13.75
__________
(a)Refer to the reconciliation of diluted earnings per common share to EPS-diluted-adjusted within this MD&A for adjustment details. These expected financial results do not include the potential impact of future adjustments related to special items.
GMNA Industry sales in North America were 15.3 million units in the nine months ended September 30, 2026, representing a decrease of 1.7% compared to the corresponding period in 2025. U.S. industry sales were 12.3 million units in the nine months ended September 30, 2026, representing a decrease of 2.3% compared to the corresponding period in 2025.
Our total vehicle sales in the U.S., our largest market in North America, were 2.0 million units for a market share of 16.4% in the nine months ended September 30, 2026, representing a decrease of 0.7 percentage points compared to the corresponding period in 2025.
We achieved solid margins in the nine months ended September 30, 2026 driven by the strength of our product portfolio and ongoing cost discipline. However, the evolving tariff and policy landscape could continue to have a material impact on our profitability going forward. We remain focused on improving our EV profitability while maintaining our focus on cost. In addition, our outlook is dependent on continued supply chain availability, the resiliency of the U.S. economy, and overall economic conditions, including the imposition of tariffs, less available offsets and deductions, or other trade restrictions by the U.S. or its trading partners. Looking ahead, our top priority is earning 8.0-10.0% annualized EBIT-adjusted margins in GMNA on a sustained basis.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
GMI Industry sales in China were 15.8 million units in the nine months ended September 30, 2026, representing a decrease of 18.2% compared to the corresponding period in 2025. Our total vehicle sales in China were 1.1 million units for a market share of 6.7% in the nine months ended September 30, 2026, representing a decrease of 0.3 percentage points compared to the corresponding period in 2025. Our Automotive China JVs generated equity income of $0.3 billion in the nine months ended September 30, 2026, which includes income of $0.1 billion related to the previously announced restructuring of SAIC General Motors Corp., Ltd (SGM). We continue to focus on enhancing the competitiveness of our products in the Chinese market and executing restructuring plans. Additional restructuring charges may be incurred going forward. In the three months ended September 30, 2026, we entered into a joint venture agreement extending the term of SGM, subject to certain conditions, through May 15, 2047, with no change to GM's ownership interest or equity-method accounting, resulting in an insignificant financial impact.
Outside of China, industry sales were 21.2 million units in the nine months ended September 30, 2026, representing an increase of 4.8% compared to the corresponding period in 2025. Our total vehicle sales outside of China were 0.7 million units for a market share of 3.1% in the nine months ended September 30, 2026, representing a decrease of 0.1 percentage points compared to the corresponding period in 2025.
Vehicle Sales The principal factors that determine consumer vehicle preferences in the markets in which we operate include overall vehicle design, price, quality, available options, safety, reliability, fuel economy or range, and functionality. Market leadership in individual countries in which we compete varies widely.
We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. Government, and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the nine months ended September 30, 2026, 27.6% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by our Automotive operations (vehicles in thousands):
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
GMNA 870 84.6 % 840 86.0 % 2,511 86.1 % 2,516 87.9 %
GMI 159 15.4 % 137 14.0 % 407 13.9 % 346 12.1 %
Total 1,028 100.0 % 977 100.0 % 2,917 100.0 % 2,862 100.0 %
Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments, and daily rental car companies); and (3) certain vehicles used by dealers in their business, including but not limited to courtesy transportation vehicles previously used by dealers that were sold to the end consumer. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our percentage ownership interest in the joint venture, including vehicle sales of non-GM trademarked vehicles, which are included in the total vehicle sales we report for China. While total vehicle sales data does not correlate directly to the revenue we recognize during a particular period, we believe it is indicative of the underlying demand for our vehicles. Total vehicle sales data represents management's good faith estimate based on sales reported by our dealers, distributors, and joint ventures; commercially available data sources, such as registration and insurance data; and internal estimates and forecasts when other data is not available.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands):
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Industry GM Market Share Industry GM Market Share Industry GM Market Share Industry GM Market Share
North America
United States 4,174 671 16.1 % 4,229 710 16.8 % 12,277 2,012 16.4 % 12,567 2,150 17.1 %
Other 1,045 126 12.1 % 1,015 127 12.5 % 3,032 376 12.4 % 3,007 384 12.8 %
Total North America 5,219 797 15.3 % 5,244 837 16.0 % 15,309 2,388 15.6 % 15,574 2,534 16.3 %
Asia/Pacific, Middle East, and Africa
China(a) 5,403 358 6.6 % 6,934 469 6.8 % 15,816 1,065 6.7 % 19,333 1,359 7.0 %
Other 5,778 115 2.0 % 5,718 149 2.6 % 17,501 329 1.9 % 17,010 369 2.2 %
Total Asia/Pacific, Middle East, and Africa 11,181 474 4.2 % 12,652 618 4.9 % 33,317 1,394 4.2 % 36,342 1,729 4.8 %
South America
Brazil 836 84 10.1 % 711 72 10.1 % 2,255 225 10.0 % 1,910 192 10.1 %
Other 485 35 7.1 % 456 35 7.7 % 1,408 103 7.3 % 1,268 95 7.5 %
Total South America 1,321 119 9.0 % 1,168 107 9.2 % 3,663 328 9.0 % 3,177 287 9.0 %
Total in GM markets 17,721 1,390 7.8 % 19,064 1,562 8.2 % 52,288 4,111 7.9 % 55,093 4,549 8.3 %
Total Europe 4,007 1 - % 4,002 1 - % 13,020 1 - % 12,611 2 - %
Total Worldwide(b) 21,729 1,390 6.4 % 23,066 1,563 6.8 % 65,309 4,112 6.3 % 67,704 4,551 6.7 %
United States
Cars 667 12 1.7 % 649 12 1.8 % 1,991 36 1.8 % 2,076 44 2.1 %
Trucks 1,159 359 31.0 % 1,142 369 32.3 % 3,343 1,061 31.7 % 3,414 1,115 32.6 %
Crossovers 2,348 300 12.8 % 2,437 330 13.5 % 6,943 915 13.2 % 7,076 992 14.0 %
Total United States 4,174 671 16.1 % 4,229 710 16.8 % 12,277 2,012 16.4 % 12,567 2,150 17.1 %
China(a)
SGMS 90 130 300 381
SGMW 269 339 765 978
Total 5,403 358 6.6 % 6,934 469 6.8 % 15,816 1,065 6.7 % 19,333 1,359 7.0 %
__________
(a)Includes sales by the Automotive China JVs: SAIC General Motors Sales Co., Ltd. (SGMS) and SAIC GM Wuling Automobile Co., Ltd. (SGMW).
(b)Cuba, Iran, North Korea, and Sudan have been subject to broad economic sanctions. Accordingly, these countries are excluded from industry sales data and corresponding calculation of market share.
As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles. Certain fleet transactions, particularly sales to daily rental car companies, are generally less profitable than retail sales to end customers. The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands):
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
GMNA 160 148 551 498
GMI 107 113 302 277
Total fleet sales 267 261 853 775
Fleet sales as a percentage of total vehicle sales 19.2 % 16.7 % 20.7 % 17.0 %
GENERAL MOTORS COMPANY AND SUBSIDIARIES
GM Financial We believe that offering a comprehensive suite of financing products will generate incremental sales of our vehicles, drive incremental GM Financial earnings, and help support our sales throughout various economic cycles. GM Financial's penetration of our retail sales in the U.S. was 35% in the nine months ended September 30, 2026 and 34% in the corresponding period in 2025. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market. GM Financial's prime loan originations as a percentage of total loan originations in North America were 76% in the nine months ended September 30, 2026 and 80% in the corresponding period in 2025. In the nine months ended September 30, 2026, GM Financial's revenue consisted of leased vehicle income of 46%, retail finance charge income of 41%, and commercial finance charge income of 6%.
GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices. The following table summarizes the estimated residual value based on GM Financial's most recent estimates and the number of units included in GM Financial Equipment on operating leases, net by vehicle type (units in thousands):
September 30, 2026 December 31, 2025
Residual Value Units Percentage Residual Value Units Percentage
Crossovers $ 12,380 570 62.6 % $ 13,145 617 64.8 %
Trucks 9,122 268 29.4 % 8,702 254 26.6 %
SUVs 2,435 50 5.5 % 2,619 56 5.9 %
Cars 462 23 2.5 % 515 26 2.7 %
Total $ 24,399 910 100.0 % $ 24,981 952 100.0 %
At September 30, 2026 and December 31, 2025, residual values of leased EVs represented 23.5% and 21.1% of total residual values.
Consolidated Results We review changes in our results of operations under five categories: Volume, Mix, Price, Cost, and Other. Volume measures the impact of changes in wholesale vehicle volumes driven by industry volume, market share, and changes in dealer stock levels. Mix measures the impact of changes to the regional portfolio due to product, model, trim, country, and option penetration in current year wholesale vehicle volumes. Price measures the impact of changes related to Manufacturer's Suggested Retail Price and various sales allowances. Cost primarily includes: (1) material and freight; (2) manufacturing, engineering, advertising, administrative and selling, and warranty expenses; and (3) non-vehicle related activity. Other primarily includes foreign exchange and non-vehicle related automotive revenues as well as equity income or loss from our nonconsolidated affiliates. Refer to the regional sections of this MD&A for additional information.
Total Net Sales and Revenue
Three Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Price Other
(Dollars in billions)
GMNA $ 41,419 $ 40,551 $ 868 2.1 % $ 1.3 $ (0.3) $ (0.2) $ -
GMI 4,085 3,645 440 12.1 % $ 0.5 $ (0.2) $ - $ 0.1
Corporate 201 60 141 n.m. $ - $ 0.1
Automotive 45,706 44,256 1,450 3.3 % $ 1.8 $ (0.5) $ (0.2) $ 0.3
GM Financial 4,312 4,337 (25) (0.6) % $ -
Eliminations/reclassifications (3) (2) (1) n.m. $ - $ -
Total net sales and revenue $ 50,015 $ 48,591 $ 1,424 2.9 % $ 1.8 $ (0.5) $ (0.2) $ 0.3
__________
n.m. = not meaningful
GENERAL MOTORS COMPANY AND SUBSIDIARIES
Nine Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Price Other
(Dollars in billions)
GMNA $ 117,732 $ 117,424 $ 307 0.3 % $ (0.1) $ (0.9) $ 0.4 $ 0.9
GMI 10,635 9,398 1,237 13.2 % $ 1.3 $ (0.6) $ 0.2 $ 0.3
Corporate 450 163 288 n.m. $ - $ 0.3
Automotive 128,817 126,985 1,832 1.4 % $ 1.2 $ (1.5) $ 0.6 $ 1.5
Cruise - 1 (1) n.m. $ -
GM Financial 12,855 12,756 99 0.8 % $ 0.1
Eliminations/reclassifications (7) (9) 2 n.m. $ - $ -
Total net sales and revenue $ 141,665 $ 139,732 $ 1,933 1.4 % $ 1.2 $ (1.5) $ 0.6 $ 1.6
__________
n.m. = not meaningful
Refer to the regional sections of this MD&A for additional information on Volume, Mix, Price, and Other.
Automotive and Other Cost of Sales
Three Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Cost Other
(Dollars in billions)
GMNA $ 36,830 $ 38,575 $ 1,745 4.5 % $ (1.0) $ 0.4 $ 2.4 $ (0.1)
GMI 3,790 3,309 (480) (14.5) % $ (0.4) $ 0.2 $ (0.3) $ -
Corporate 119 53 (66) n.m. $ - $ (0.1) $ -
Eliminations - (1) (1) n.m. $ - $ -
Total automotive and other cost of sales $ 40,739 $ 41,936 $ 1,198 2.9 % $ (1.3) $ 0.6 $ 2.1 $ (0.1)
__________
n.m. = not meaningful
Nine Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Cost Other
(Dollars in billions)
GMNA $ 106,300 $ 107,200 $ 899 0.8 % $ 0.1 $ 1.3 $ - $ (0.5)
GMI 9,820 8,875 (945) (10.6) % $ (1.1) $ 0.4 $ (0.1) $ (0.2)
Corporate 342 181 (162) (89.5) % $ - $ (0.2) $ -
Cruise - 163 163 n.m. $ 0.2
Eliminations - (2) (3) n.m. $ - $ -
Total automotive and other cost of sales $ 116,462 $ 116,416 $ (46) - % $ (1.0) $ 1.8 $ (0.2) $ (0.6)
__________
n.m. = not meaningful
In the three months ended September 30, 2026, decreased Cost was primarily due to: (1) the reduction of charges related to the EV strategic realignment of $1.5 billion; (2) decreased warranty-related costs of $0.9 billion; (3) decreased net realizable value inventory adjustments, primarily EV-related, of $0.5 billion; and (4) the absence of charges related to the former OnStar Smart Driver program of $0.3 billion; partially offset by (5) decreased Ultium Cells Holdings LLC equity earnings of $0.2 billion; (6) increased manufacturing costs of $0.2 billion; (7) increased engineering costs of $0.2 billion; and (8) increased costs of $0.4 billion due to other individually insignificant items.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
In the nine months ended September 30, 2026, increased Cost was primarily due to: (1) charges of $1.5 billion due to the EV strategic realignment; (2) decreased Ultium Cells Holdings LLC equity earnings of $1.0 billion; (3) increased material and freight costs of $0.5 billion, including $0.5 billion net favorable tariffs; (4) increased other employee related costs of $0.3 billion; (5) increased engineering costs of $0.3 billion; (6) increased parts and accessories costs of $0.3 billion; and (7) increased manufacturing costs of $0.2 billion; partially offset by (8) decreased warranty-related costs of $1.7 billion; (9) decreased net realizable value inventory adjustments, primarily EV-related, of $1.3 billion; (10) decreased emissions costs of $0.5 billion; and (11) the absence of charges related to the former OnStar Smart Driver program of $0.3 billion. In the nine months ended September 30, 2026, unfavorable Other was primarily due to net foreign currency changes in the Mexican peso.
Refer to the regional sections of this MD&A for additional information on Volume and Mix.
Automotive and Other Selling, General, and Administrative Expense
Three Months Ended Favorable/ (Unfavorable) Nine Months Ended Favorable/ (Unfavorable)
September 30, 2026 September 30, 2025 % September 30, 2026 September 30, 2025 %
Automotive and other selling, general, and administrative expense $ 2,027 $ 2,037 $ 10 0.5 % $ 6,293 $ 6,161 $ (132) (2.1) %
Interest Income and Other Non-operating Income, net
Three Months Ended Favorable/ (Unfavorable) Nine Months Ended Favorable/ (Unfavorable)
September 30, 2026 September 30, 2025 % September 30, 2026 September 30, 2025 %
Interest income and other non-operating income, net $ 274 $ 475 $ (202) (42.4) % $ 803 $ 1,151 $ (348) (30.2) %
In the three months ended September 30, 2026, Interest income and other non-operating income, net decreased primarily due to $0.2 billion in losses related to revaluation of investments.
In the nine months ended September 30, 2026, Interest income and other non-operating income, net decreased primarily due to: (1) $0.2 billion in losses related to revaluation of investments; and (2) $0.1 billion decrease in interest income.
Income Tax Expense
Three Months Ended Favorable/ (Unfavorable) Nine Months Ended Favorable/ (Unfavorable)
September 30, 2026 September 30, 2025 % September 30, 2026 September 30, 2025 %
Income tax expense $ 565 $ 127 $ (439) n.m. $ 1,422 $ 1,326 $ (96) (7.2) %
__________
n.m. = not meaningful
In the three and nine months ended September 30, 2026, Income tax expense increased primarily due to higher pre-tax income.
For the three and nine months ended September 30, 2026, our effective tax rate was 14.3% and 16.1% and our effective tax rate-adjusted (ETR-adjusted) was 19.9% and 18.9%. We expect our ETR-adjusted to be between 20% and 21% for the year ending December 31, 2026. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
GM North America
Three Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue $ 41,419 $ 40,551 $ 868 2.1 % $ 1.3 $ (0.3) $ (0.2) $ -
EBIT-adjusted $ 3,592 $ 2,506 $ 1,087 43.4 % $ 0.4 $ 0.2 $ (0.2) $ 0.6 $ 0.1
EBIT-adjusted margin 8.7 % 6.2 % 2.5 %
(Vehicles in thousands)
Wholesale vehicle sales 870 840 30 3.5 %
Nine Months Ended Favorable/ (Unfavorable) % Variance Due To
September 30, 2026 September 30, 2025 Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue
$ 117,732 $ 117,424 $ 307 0.3 % $ (0.1) $ (0.9) $ 0.4 $ 0.9
EBIT-adjusted $ 10,699 $ 8,207 $ 2,492 30.4 % $ - $ 0.6 $ 0.4 $ 1.3 $ 0.2
EBIT-adjusted margin 9.1 % 7.0 % 2.1 %
(Vehicles in thousands)
Wholesale vehicle sales 2,511 2,516 (5) (0.2) %
GMNA Total Net Sales and Revenue In the three months ended September 30, 2026, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes due to increased sales of full-size pickup trucks and crossover vehicles, partially offset by decreased sales of mid-size pickup trucks and vans; partially offset by (2) unfavorable Mix associated with increased sales of crossover vehicles, partially offset by increased sales of full-size pickup trucks and decreased sales of mid-size pickup trucks and vans; and (3) unfavorable Price due to timing of model year introductions.
In the nine months ended September 30, 2026, Total net sales and revenue increased primarily due to: (1) favorable Other due to net foreign currency changes and increased revenue of software-enabled services and subscriptions; and (2) favorable Price as a result of lean dealer inventory levels due to strong demand for our products; partially offset by (3) unfavorable Mix associated with decreased sales of crossover vehicles and full-size SUVs; and (4) decreased net wholesale volumes due to decreased sales of mid-size pickup trucks and vans, crossover vehicles, and full-size SUVs, partially offset by increased sales of full-size pickup trucks and cars.
GMNA EBIT-Adjusted In the three months ended September 30, 2026, EBIT-adjusted increased primarily due to: (1) favorable Cost primarily due to decreased warranty-related costs of $0.9 billion and decreased net realizable value inventory adjustments, primarily EV-related, of $0.4 billion, partially offset by decreased Ultium Cells Holdings LLC equity earnings of $0.2 billion, increased engineering costs of $0.2 billion, increased employee-related costs of $0.1 billion, and increased manufacturing costs of $0.1 billion; (2) increased net wholesale volumes; and (3) favorable Mix associated with increased sales of full-size pickup trucks, partially offset by increased sales of crossover vehicles; partially offset by (4) unfavorable Price.
In the nine months ended September 30, 2026, EBIT-adjusted increased primarily due to: (1) favorable Cost primarily due to decreased warranty-related costs of $1.7 billion, decreased net realizable value inventory adjustments, primarily EV-related, of $1.3 billion, and decreased emissions costs of $0.5 billion, partially offset by decreased Ultium Cells Holdings LLC equity earnings of $1.0 billion, increased engineering costs of $0.5 billion, increased employee-related costs of $0.3 billion, increased parts and accessories costs of $0.3 billion, and increased material and freight costs of $0.2 billion, including $0.5 billion net favorable tariffs; (2) favorable Mix associated with increased sales of full-size pickup trucks and decreased sales of crossover vehicles; (3) favorable Price; and (4) favorable Other due to investment gains.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
GM International
Three Months Ended Favorable/ (Unfavorable) Variance Due To
September 30, 2026 September 30, 2025 % Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue $ 4,085 $ 3,645 $ 440 12.1 % $ 0.5 $ (0.2) $ - $ 0.1
EBIT-adjusted $ 28 $ 226 $ (198) (87.7) % $ 0.1 $ - $ - $ (0.3) $ -
EBIT-adjusted margin 0.7 % 6.2 % (5.5) %
Equity income (loss) - Automotive China $ 32 $ 80 $ (48) (60.3) %
EBIT-adjusted - excluding Equity income (loss) $ (4) $ 146 $ (150) n.m.
(Vehicles in thousands)
Wholesale vehicle sales 159 137 22 16.0 %
__________
n.m. = not meaningful
Nine Months Ended Favorable/ (Unfavorable) Variance Due To
September 30, 2026 September 30, 2025 % Volume Mix Price Cost Other
(Dollars in billions)
Total net sales and revenue $ 10,635 $ 9,398 $ 1,237 13.2 % $ 1.3 $ (0.6) $ 0.2 $ 0.4
EBIT-adjusted $ 342 $ 460 $ (118) (25.7) % $ 0.3 $ (0.2) $ 0.2 $ (0.4) $ 0.1
EBIT-adjusted margin 3.2 % 4.9 % (1.7) %
Equity income (loss) - Automotive China $ 280 $ 197 $ 83 42.4 %
EBIT-adjusted - excluding Equity income (loss)(a) $ 140 $ 266 $ (127) (47.5) %
(Vehicles in thousands)
Wholesale vehicle sales 407 346 61 17.6 %
__________
(a)Excludes adjustments related to Automotive China JVs restructuring recorded in GMI.
The vehicle sales of our Automotive China JVs are not recorded in Total net sales and revenue. The results of our joint ventures are recorded in Equity income (loss), which is included in EBIT-adjusted above.
GMI Total Net Sales and Revenue In the three months ended September 30, 2026, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes in South America primarily due to increased sales of crossovers and passenger cars in Brazil; and (2) favorable Other primarily due to net foreign currency changes in the Brazilian real and Colombian peso, partially offset by changes in the Argentine peso; partially offset by (3) unfavorable Mix in Brazil and the Middle East.
In the nine months ended September 30, 2026, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes in South America primarily due to increased sales of crossovers and passenger cars in Brazil, partially offset by decreased volumes in the Middle East; (2) favorable Price across multiple vehicle lines in Argentina and the Middle East; and (3) favorable Other primarily due to net foreign currency changes in the Brazilian real and Colombian peso, partially offset by changes in the Argentine peso; partially offset by (4) unfavorable Mix in Brazil and the Middle East.
GMI EBIT-Adjusted In the three months ended September 30, 2026, EBIT-adjusted decreased primarily due to: (1) unfavorable Cost primarily due to increased material, logistics, and manufacturing costs; partially offset by (2) increased net wholesale volumes.
In the nine months ended September 30, 2026, EBIT-adjusted decreased primarily due to: (1) unfavorable Cost primarily due to increased material, logistics, and manufacturing costs; and (2) unfavorable Mix; partially offset by (3) increased net wholesale volumes; (4) favorable Price; and (5) favorable Other primarily due to net foreign currency changes in the Brazilian
GENERAL MOTORS COMPANY AND SUBSIDIARIES
real, Colombian peso, and the Australian dollar, partially offset by net foreign currency changes in the Argentine peso and losses related to the revaluation of investments.
The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands):
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Wholesale vehicle sales, including vehicles exported to markets outside of China 446 519 1,311 1,494
Total net sales and revenue $ 6,649 $ 6,121 $ 18,548 $ 17,270
Net income (loss) $ 141 $ 144 $ 732 $ 341
GM Financial
Three Months Ended Increase/ (Decrease) % Nine Months Ended Increase/ (Decrease) %
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Total revenue $ 4,312 $ 4,337 $ (25) (0.6) % $ 12,855 $ 12,756 $ 99 0.8 %
Provision for loan losses $ 340 $ 244 $ 96 39.4 % $ 996 $ 926 $ 70 7.6 %
EBT-adjusted $ 668 $ 804 $ (136) (16.9) % $ 1,962 $ 2,193 $ (231) (10.5) %
Average debt outstanding (dollars in billions) $ 113.0 $ 117.6 $ (4.6) (3.9) % $ 113.6 $ 116.9 $ (3.3) (2.8) %
Effective rate of interest paid 5.5 % 5.6 % (0.1) % 5.5 % 5.6 % (0.1) %
GM Financial Revenue In the three months ended September 30, 2026, total revenue decreased by an insignificant amount.
In the nine months ended September 30, 2026, total revenue increased primarily due to: (1) increased other income of $0.1 billion primarily due to growth in the insurance and vehicle protection businesses, partially offset by lower investment income resulting from a decrease in the average investment balance; and (2) increased leased vehicle income of $0.1 billion primarily due to an increase in the average balance of the leased vehicles portfolio; partially offset by (3) decreased finance charge income of $0.1 billion primarily due to a decrease in the average balance of the finance receivables portfolio.
GM Financial EBT-Adjusted In the three months ended September 30, 2026, EBT-adjusted decreased primarily due to: (1) increased operating expenses of $0.1 billion primarily due to growth in the insurance and vehicle protection businesses and related claims losses; (2) increased provision for loan losses of $0.1 billion primarily due to an increase in loan origination volume as well as the reversal of the allowance for loan losses on finance receivables reclassified to held-for-sale during the three months ended September 30, 2025; partially offset by (3) decreased interest expense of $0.1 billion primarily due to a decrease in the average debt outstanding and a lower effective rate of interest on GM Financial debt.
In the nine months ended September 30, 2026, EBT-adjusted decreased primarily due to: (1) increased operating expenses of $0.3 billion primarily due to growth in the insurance and vehicle protection businesses and related claims losses; (2) increased leased vehicle expenses of $0.3 billion primarily due to increased depreciation expense on EVs; (3) decreased finance charge income of $0.1 billion primarily due to a decrease in the average balance of the finance receivables portfolio; and (4) increased provision for loan losses of $0.1 billion primarily due to the reversal of the allowance for loan losses on finance receivables reclassified to held-for-sale during the nine months ended September 30, 2025 as well as credit mix of loan originations; partially offset by (5) decreased interest expense of $0.2 billion primarily due to a decrease in the average debt outstanding and a lower effective rate of interest on GM Financial debt; (6) increased other income of $0.1 billion primarily due to growth in the insurance and vehicle protection businesses, partially offset by lower investment income resulting from a decrease in the average investment balance; and (7) increased leased vehicle income of $0.1 billion primarily due to an increase in the average balance of the leased vehicles portfolio.
Liquidity and Capital Resources We believe our current levels of cash, cash equivalents, marketable debt securities, available borrowing capacity under our credit facilities, and other liquidity actions currently available to us are sufficient to
GENERAL MOTORS COMPANY AND SUBSIDIARIES
meet our liquidity requirements in the short- and long-term. We also maintain access to the capital markets and may issue debt or equity securities, which may provide an additional source of liquidity. We have substantial cash requirements going forward, which we plan to fund through our total available liquidity, cash flows from operating activities, and additional liquidity measures, if determined to be necessary.
Our known current material uses of cash include, among other possible demands: (1) capital spending and our investments in our battery cell manufacturing joint ventures of approximately $10.0 billion to $12.0 billion in 2026; (2) payments for engineering and product development activities, including the development of AV technology and software-enabled services; (3) payments associated with previously announced EV-related cash charges, warranty claims, vehicle recalls, and any other recall-related contingencies; (4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (5) dividend payments on our common stock that are declared by our Board of Directors; and (6) payments to purchase shares of our common stock authorized by our Board of Directors. Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are focused on the three objectives of our capital allocation program: (1) grow our business at an average target return on invested capital-adjusted (ROIC-adjusted) rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18.0 billion; and (3) after the first two objectives are met, return available cash to stockholders. Our senior management evaluates our capital allocation program on an ongoing basis and recommends any modifications to the program to our Board of Directors not less than once annually.
During the year ended December 31, 2025, we recorded charges of $7.9 billion in GMNA related to our EV strategic realignment. These charges included non-cash impairment and other charges of $3.2 billion and cash related charges of $4.7 billion that will have a cash impact when paid. We incurred cash outflows of $0.4 billion related to these charges in the year ended December 31, 2025. In the nine months ended September 30, 2026, we recorded additional net charges of $3.6 billion of which $2.7 billion will have a cash impact when paid. We incurred cash outflows of $4.2 billion related to these charges in the nine months ended September 30, 2026. We expect to recognize additional charges in the year ending December 31, 2026, and while circumstances may change in the future, we believe we have substantially completed the recognition of material cash charges related to our EV strategic realignment.
We have entered into offtake agreements and inventory banking arrangements that generally obligate us to purchase defined quantities of output and, if financed by the Inventory Banking Facility, repay the financed amounts. These arrangements could result in an adverse impact on our cash and excess inventory if our commitments exceed forecasted demand. We also continue to monitor and evaluate opportunities to strengthen our competitive position over the long term while maintaining a strong investment-grade balance sheet. These actions may include opportunistic payments to reduce our long-term obligations, and the possibility of acquisitions, dispositions, and investments with joint venture partners, as well as strategic alliances that we believe would generate significant advantages and substantially strengthen our business.
Our liquidity plans are subject to a number of risks and uncertainties, including those described in the "Forward-Looking Statements" section of this MD&A, Part I, Item 1A. Risk Factors of our 2025 Form 10-K, and Part II, Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the three months ended March 31, 2026, some of which are outside of our control.
In January 2026, our Board of Directors increased the capacity under our existing share repurchase program by $6.0 billion to an aggregate of $6.3 billion, which we fully utilized in October 2026. In the nine months ended September 30, 2026, we repurchased 65 million outstanding shares of our common stock for $5.3 billion. In October 2026, our Board of Directors authorized $20.0 billion of additional repurchases under our existing share repurchase program, with no expiration date.
In the nine months ended September 30, 2026, we paid dividends of $0.5 billion to holders of our common stock. In January 2026, our Board of Directors approved an increase in the quarterly common stock dividend of $0.03 to $0.18 per share beginning with the quarterly dividend declared in January 2026.
Cash flows that occur amongst our Automotive, Cruise, and GM Financial operations are eliminated when we consolidate our cash flows. Such eliminations include, among other things, collections by Automotive on wholesale accounts receivables financed by dealers through GM Financial, payments between Automotive and GM Financial for accounts receivables transferred by Automotive to GM Financial, loans to Automotive and Cruise from GM Financial, dividends issued by GM Financial to Automotive, tax payments by GM Financial to Automotive, and Automotive cash expenditures related to Cruise. The presentation of Automotive liquidity and GM Financial liquidity presented below includes the impact of cash transactions amongst the sectors that are ultimately eliminated in consolidation. The Cruise restructuring activities were substantially complete as of December 31, 2025. Net cash used in operating activities by Cruise was $0.8 billion in the nine months ended September 30, 2025.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
Automotive Liquidity Total available liquidity includes cash, cash equivalents, marketable debt securities, and funds available under credit facilities. The amount of available liquidity is subject to seasonal fluctuations and includes balances held by various business units and subsidiaries worldwide that are needed to fund their operations. We have not significantly changed the management of our liquidity, including our allocation of available liquidity, our portfolio composition, and our investment guidelines since December 31, 2025. Refer to Part II, Item 7. MD&A of our 2025 Form 10-K.
In March 2026, we renewed our 364-day, $2.0 billion revolving credit facility allocated for the exclusive use of GM Financial, which now matures on March 22, 2027.
We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. Our Automotive borrowing capacity under credit facilities totaled $14.4 billion at September 30, 2026 and December 31, 2025, which consisted primarily of two credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial or our $4.5 billion Inventory Banking Facility. We did not have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.4 billion and $0.5 billion at September 30, 2026 and December 31, 2025.
If available capacity permits, GM Financial continues to have access to our automotive credit facilities. GM Financial did not have borrowings outstanding against any of these facilities at September 30, 2026 and December 31, 2025. We had intercompany loans from GM Financial of $0.4 billion at September 30, 2026 and December 31, 2025, which primarily consisted of commercial loans to dealers we consolidate. We did not have intercompany loans to GM Financial at September 30, 2026 and December 31, 2025.
Several of our loan facilities, including our credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders. We have reviewed our covenants in effect as of September 30, 2026 and determined we are in compliance and expect to remain in compliance in the future.
GM Financial's Board of Directors declared and paid dividends of $1.2 billion on its common stock in the nine months ended September 30, 2026. Future dividends from GM Financial will depend on several factors including business and economic conditions, its financial condition, earnings, liquidity requirements, and leverage ratio.
The following table summarizes our Automotive available liquidity (dollars in billions):
September 30, 2026 December 31, 2025
Automotive cash and cash equivalents $ 18.8 $ 15.1
Marketable debt securities 4.4 6.7
Automotive cash, cash equivalents, and marketable debt securities 23.1 21.7
Available under credit facilities(a) 14.0 13.9
Total Automotive available liquidity(b) $ 37.1 $ 35.7
__________
(a)We had letters of credit outstanding under our sub-facility of $0.4 billion and $0.5 billion at September 30, 2026 and December 31, 2025.
(b)Excludes equity securities with a fair value of $0.5 billion and $0.7 billion at September 30, 2026 and December 31, 2025.
The following table summarizes the changes in our Automotive available liquidity (dollars in billions):
Nine Months Ended September 30, 2026
Operating cash flow $ 13.7
Capital expenditures (5.8)
Shares repurchased and dividends paid (6.2)
Financing lease purchase option (0.2)
Increase in available credit facilities 0.1
Other non-operating (0.1)
Total change in Automotive available liquidity $ 1.5
GENERAL MOTORS COMPANY AND SUBSIDIARIES
Automotive Cash Flow (dollars in billions)
Nine Months Ended Change
September 30, 2026 September 30, 2025
Operating Activities
Net income $ 6.0 $ 4.7 $ 1.3
Depreciation, amortization, and impairment charges 5.1 6.4 (1.3)
Pension and OPEB activities (0.6) (0.4) (0.2)
Working capital (0.4) (2.2) 1.8
Accrued and other liabilities and income taxes 1.8 2.1 (0.3)
Other(a) 1.8 2.6 (0.8)
Net automotive cash provided by (used in) operating activities(b) $ 13.7 $ 13.1 $ 0.5
__________
(a)Includes $1.2 billion and $1.1 billion in dividends received from GM Financial in the nine months ended September 30, 2026 and 2025; $1.1 billion in dividends received from our nonconsolidated affiliates in the nine months ended September 30, 2025; and changes in other assets and liabilities in the nine months ended September 30, 2026 and 2025.
(b)Includes $2.0 billion and $(1.7) billion in the nine months ended September 30, 2026 and 2025, which are eliminated within the condensed consolidated statements of cash flows. Amounts eliminated primarily relate to purchases of, and collections on, wholesale finance receivables provided by GM Financial to our dealers and dividends issued by GM Financial to us.
Nine Months Ended Change
September 30, 2026 September 30, 2025
Investing Activities
Capital expenditures $ (5.8) $ (6.1) $ 0.3
Acquisitions and liquidations of marketable securities, net 2.3 0.6 1.7
Other(a) 0.2 (3.4) 3.6
Net automotive cash provided by (used in) investing activities(b) $ (3.2) $ (8.8) $ 5.5
__________
(a)Includes $0.2 billion and $0.1 billion loan repayments from Ultium Cells LLC in the nine months ended September 30, 2026 and 2025; and $(1.8) billion term loan to Ultium Cells LLC, $(1.0) billion of funding to wind down Cruise robotaxi operations, and $(0.6) billion of GM's investment in nonconsolidated affiliates in the nine months ended September 30, 2025.
(b)Includes $(1.0) billion of funding to wind down Cruise robotaxi operations in the nine months ended September 30, 2025, which is eliminated within the condensed consolidated statements of cash flows.
Nine Months Ended Change
September 30, 2026 September 30, 2025
Financing Activities
Net proceeds (payments) from short-term debt $ (0.1) $ (1.8) $ 1.7
Issuance of senior unsecured notes - 2.0 (2.0)
Other(a) (6.7) (4.1) (2.6)
Net automotive cash provided by (used in) financing activities $ (6.8) $ (3.9) $ (2.8)
__________
(a)Includes $(5.3) billion and $(1.5) billion for payments to purchase common stock in the nine months ended September 30, 2026 and 2025; $(0.5) billion and $(0.4) billion for dividends paid in the nine months ended September 30, 2026 and 2025; $(0.4) billion for dividends to noncontrolling interests in the nine months ended September 30, 2026; and $(2.0) billion in payments related to the ASR in the nine months ended September 30, 2025.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow starting with automotive operating cash flow from operations. We subtract capital expenditures, add the imputed cash effects of third-party payments made on our behalf for inventory banking, and subtract the cash effects when the banked inventory is consumed. The result is then adjusted for management actions, which can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes. In the nine months ended September 30, 2026, net automotive cash provided by operating activities was $13.7 billion, capital expenditures were $5.8 billion, imputed inventory banking costs were insignificant, and adjustments for management actions were $4.2 billion. In the nine months ended September 30, 2025, net automotive cash provided by operating activities was $13.1 billion, capital expenditures were $6.1 billion, and adjustments for management actions were $0.8 billion.
Status of Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings, Moody's Investors Service, and Standard & Poor's. All four credit rating agencies currently rate our corporate credit at investment grade. As of October 14, 2026, all credit ratings remained unchanged since December 31, 2025.
Automotive Financing - GM Financial Liquidity GM Financial's primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, net proceeds from credit facilities, securitizations, secured and unsecured borrowings, and collections and recoveries on finance receivables. GM Financial's primary uses of cash are purchases and funding of finance receivables and leased vehicles, repayment or repurchases of secured and unsecured debt, funding credit enhancement requirements in connection with securitizations and secured credit facilities, interest costs, operating expenses, income taxes, and dividend payments. GM Financial continues to monitor and evaluate opportunities to optimize its liquidity position and the mix of its debt between secured and unsecured debt.
The following table summarizes GM Financial's available liquidity (dollars in billions):
September 30, 2026 December 31, 2025
Cash, cash equivalents, and marketable debt securities $ 4.7 $ 5.9
Available capacity under secured credit facilities 19.1 25.9
Available under committed unsecured credit facilities 1.2 1.0
Available under revolving credit facility, exclusive to GM Financial 2.0 2.0
Total GM Financial available liquidity $ 27.0 $ 34.8
GM Financial's available liquidity varies quarterly based on factors including near-term debt issuances and maturities, as well as changes in its earning assets. At September 30, 2026, GM Financial's available liquidity decreased from December 31, 2025, primarily due to increased utilization of its secured credit facilities and a decrease in cash and cash equivalents. GM Financial generally targets liquidity levels to support at least six months of GM Financial's expected net cash outflows, including new originations, without access to new debt financing transactions or other capital markets activity. At September 30, 2026, available liquidity exceeded GM Financial's liquidity targets.
GM Financial Cash Flow (dollars in billions)
Nine Months Ended Change
September 30, 2026 September 30, 2025
Net cash provided by (used in) operating activities $ 4.9 $ 6.1 $ (1.1)
Net cash provided by (used in) investing activities(a) $ (4.2) $ (1.6) $ (2.6)
Net cash provided by (used in) financing activities(b) $ (1.7) $ (1.7) $ -
__________
(a)Includes $(0.9) billion in the nine months ended September 30, 2026 primarily related to purchases of, and collections on, wholesale finance receivables and $3.1 billion in the nine months ended September 30, 2025 primarily related to purchases of, and collections on, wholesale finance receivables, and collection of intercompany loans to Cruise, which are eliminated within the condensed consolidated statements of cash flows.
(b)Includes $(1.2) billion and $(1.1) billion in the nine months ended September 30, 2026 and 2025 for dividends to GM, which are eliminated within the condensed consolidated statements of cash flows.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
Nine Months Ended Change
September 30, 2026 September 30, 2025
Operating Activities
Net income (loss) $ 1.4 $ 1.6 $ (0.2)
Depreciation and amortization 4.1 4.0 0.2
Accretion and amortization of loan and leasing fees (1.1) (1.2) 0.1
Provision for loan losses 1.0 0.9 0.1
Other non-cash income (0.4) (0.7) 0.3
Changes in assets and liabilities (0.3) 1.3 (1.5)
Deferred income taxes 0.2 0.2 -
Net cash provided by (used in) operating activities $ 4.9 $ 6.1 $ (1.1)
Credit Facilities In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities, which may be secured or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy. At September 30, 2026, secured and unsecured credit facilities totaled $28.2 billion and $4.0 billion, with advances outstanding of $9.0 billion and $2.7 billion.
GM Financial did not have any borrowings outstanding against our credit facility designated for their exclusive use or the remainder of our revolving credit facilities at September 30, 2026 and December 31, 2025. Refer to the "Automotive Liquidity" section of this MD&A for additional details.
Critical Accounting Estimates The condensed consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses in the periods presented. We believe the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in developing estimates, actual results could differ from the original estimates, requiring adjustments to these balances in future periods. The critical accounting estimates that affect the condensed consolidated financial statements and the judgments and assumptions used are consistent with those described in the MD&A in our 2025 Form 10-K.
Non-GAAP Measures We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. Our non-GAAP measures include: EBIT-adjusted, presented net of noncontrolling interests; EBT-adjusted for our GM Financial segment; EPS-diluted-adjusted; ETR-adjusted; ROIC-adjusted; and adjusted automotive free cash flow. Our calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons, and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment, and operational decision-making processes, for internal reporting, and as part of its forecasting and budgeting processes. Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense, and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include, but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business conditions, and certain costs arising from legal matters. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP
GENERAL MOTORS COMPANY AND SUBSIDIARIES
measure in any future periods in which there is an impact from the item. Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are an integral part of its financial performance.
EPS-diluted-adjusted (Most comparable GAAP measure: Diluted earnings per common share) EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less adjustments noted above for EBIT-adjusted and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or release of significant deferred tax asset valuation allowances.
ETR-adjusted (Most comparable GAAP measure: Effective tax rate) ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and the income tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments. When we provide an expected adjusted effective tax rate, we cannot provide an expected effective tax rate without unreasonable efforts because the U.S. GAAP measure may include significant adjustments that are difficult to predict.
ROIC-adjusted (Most comparable GAAP measure: Return on equity) ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and OPEB liabilities; and average automotive net income tax assets during the same period.
Adjusted automotive free cash flow (Most comparable GAAP measure: Net automotive cash provided by operating activities) Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow starting with automotive operating cash flow from operations. We subtract capital expenditures, add the imputed cash effects of third-party payments made on our behalf for inventory banking, and subtract the cash effects when the banked inventory is consumed. The result is then adjusted for management actions, which can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes. Refer to the "Liquidity and Capital Resources" section of this MD&A for additional information.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table reconciles Net income (loss) attributable to stockholders to EBIT-adjusted:
Three Months Ended
September 30, June 30, March 31, December 31,
2026 2025 2026 2025 2026 2025 2025 2024
Net income (loss) attributable to stockholders $ 3,335 $ 1,327 $ 1,305 $ 1,895 $ 2,627 $ 2,784 $ (3,310) $ (2,961)
Income tax expense (benefit) 565 127 214 481 642 719 (989) 318
Automotive interest expense 162 209 151 198 158 152 167 215
Automotive interest income (195) (220) (183) (200) (173) (191) (242) (279)
Adjustments
EV strategic realignment(a) 238 1,592 2,279 330 1,077 - 5,992 -
China restructuring actions(b) - - 177 140 (78) - 702 4,010
Legal matters(c) - 300 - - - - 357 -
Restructuring and other strategic actions(d) - 41 - 193 - 26 166 1,207
Total adjustments 238 1,933 2,456 663 999 26 7,217 5,217
EBIT-adjusted $ 4,106 $ 3,376 $ 3,943 $ 3,037 $ 4,253 $ 3,490 $ 2,843 $ 2,509
__________
(a)These adjustments were excluded because they relate to our strategic realignment of our EV capacity and manufacturing footprint, including Ultium's strategic realignment.
(b)These adjustments were excluded because they relate to restructuring activities associated with our operations in China, including an other-than-temporary impairment and restructuring charges recorded in equity earnings associated with our Automotive China JVs.
(c)These adjustments were excluded because they relate to investigations and litigation associated with our former OnStar Smart Driver product and an indemnification charge for a European-wide Takata related recall.
(d)These adjustments were excluded because they relate to restructuring and strategic actions associated with employee separations, autonomous and assisted driving, manufacturing operations in Colombia and Ecuador, Buick's EV strategy, and the GM headquarters relocation.
The following table reconciles diluted earnings per common share to EPS-diluted-adjusted:
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Diluted earnings per common share $ 3,305 $ 3.73 $ 1,297 $ 1.35 $ 7,206 $ 7.94 $ 6,510 $ 6.64
Adjustments(a) 238 0.27 1,933 2.01 3,693 4.07 2,622 2.67
Tax effect on adjustments(b) (57) (0.06) (536) (0.56) (736) (0.81) (606) (0.62)
Tax adjustments(c) (208) (0.23) - - (208) (0.23) - -
Return from preferred shareholders(d) - - - - - - (593) (0.60)
EPS-diluted-adjusted $ 3,278 $ 3.70 $ 2,694 $ 2.80 $ 9,955 $ 10.97 $ 7,933 $ 8.09
__________
(a)Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted within this section of MD&A for adjustment details.
(b)The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(c)These adjustments consist of tax benefits from a change to a subsidiary's legal entity tax classification.
(d)This adjustment consists of a return from the preferred shareholders related to the redemption of Cruise preferred shares from noncontrolling interest holders in the nine months ended September 30, 2025.
GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table reconciles our effective tax rate to ETR-adjusted:
Three Months Ended Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Income before income taxes Income tax expense (benefit) Effective tax rate Income before income taxes Income tax expense (benefit) Effective tax rate Income before income taxes Income tax expense (benefit) Effective tax rate Income before income taxes Income tax expense (benefit) Effective tax rate
Effective tax rate $ 3,943 $ 565 14.3 % $ 1,419 $ 127 8.9 % $ 8,858 $ 1,422 16.1 % $ 7,366 $ 1,326 18.0 %
Adjustments(a) 238 57 1,933 536 3,693 736 2,622 606
Tax adjustments(b) - 208 - - - 208 - -
ETR-adjusted $ 4,181 $ 830 19.9 % $ 3,352 $ 663 19.8 % $ 12,551 $ 2,366 18.9 % $ 9,988 $ 1,932 19.3 %
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(a)Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted within this section of MD&A for adjustment details. These adjustments include Net income attributable to noncontrolling interests where applicable. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(b)Refer to the reconciliation of diluted earnings (loss) per common share to EPS-diluted adjusted within this section of MD&A for adjustment details.
We define return on equity (ROE) as Net income (loss) attributable to stockholders for the trailing four quarters divided by average equity for the same period. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollars in billions):
Four Quarters Ended
September 30, 2026 September 30, 2025
Net income attributable to stockholders $ 4.0 $ 3.0
Average equity(a) $ 62.1 $ 65.2
ROE 6.4 % 4.7 %
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(a)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders.
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Four Quarters Ended
September 30, 2026 September 30, 2025
EBIT-adjusted(a) $ 15.1 $ 12.4
Average equity(b) $ 62.1 $ 65.2
Add: Average automotive debt and interest liabilities (excluding finance leases) 15.9 16.1
Add: Average automotive net pension and OPEB liability 7.6 8.7
Less: Average automotive net income tax asset (24.5) (22.9)
ROIC-adjusted average net assets $ 61.1 $ 67.1
ROIC-adjusted 24.8 % 18.5 %
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(a)Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted within this section of MD&A.
(b)Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT-adjusted.
Forward-Looking Statements This report and the other reports filed by us with the SEC from time to time, as well as statements incorporated by reference herein and related comments by our management, may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words like "aim," "anticipate," "appears," "approximately," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "goal," "initiative," "intend," "may," "objective," "outlook," "plan," "potential," "priorities," "project," "pursue," "seek," "should," "target," "when," "will," "would," or the negative of any of those words or similar expressions. In making these statements, we rely on assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any
GENERAL MOTORS COMPANY AND SUBSIDIARIES
future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies, and customer experiences in response to increased competition and changing consumer needs and preferences; (2) our ability to attract and retain talented and highly skilled employees; (3) our ability to timely fund and introduce new and improved vehicle models, that are able to attract a sufficient number of consumers; (4) our ability to profitably deliver a strategic portfolio of EVs; (5) adoption of EVs by consumers; (6) the success of our current line of ICE vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks; (7) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (8) the unique technological, operational, regulatory, and competitive risks related to our refocused AV strategy on personal vehicles; (9) risks associated with climate change, including evolving regulation of GHG emissions, changing consumer preferences and demand, and the potential increased impacts of severe weather events; (10) global automobile market sales volume, which can be volatile; (11) inflationary pressures and persistently high prices and uncertain availability of commodities, raw materials, and other inputs used by us and our suppliers, and instability in logistics and related costs; (12) our business in China, which is subject to unique operational, competitive, regulatory, and economic risks; (13) the success of our ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (14) the international scale and footprint of our operations, which expose us to a variety of unique political, economic, competitive, and regulatory risks, including the risk of changes in government leadership and laws (including labor, trade, tax, and other laws), political uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, introduction of new tariffs or changes to announced tariffs directly and indirectly applicable to our industry, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements, and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness; (15) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (16) the ability of our suppliers to deliver parts, systems, components, and raw materials without disruption and at such times to allow us to meet production schedules; (17) pandemics, epidemics, disease outbreaks, and other public health crises; (18) the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (19) our ability to manage risks related to security breaches, cyberattacks, and other disruptions to our information technology systems and networked products, including connected vehicles; (20) our ability to manage security breaches and other disruptions to our in-vehicle systems; (21) our ability to comply with increasingly complex, restrictive, and punitive regulations relating to our enterprise data practices, including the collection, use, sharing, and security of the personal information of our customers, employees, or suppliers; (22) our ability to comply with extensive laws, regulations, and policies applicable to our industry, operations, and products, including those in the One Big Beautiful Bill Act and/or relating to fuel economy, emissions, and AVs; (23) costs and risks associated with litigation, governmental investigations, and other proceedings; (24) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (25) any additional tax expense or exposure or failure to fully realize available tax incentives; (26) our continued ability to develop captive financing capability through GM Financial; (27) any significant increase in our pension funding requirements; and (28) uncertainties regarding the IEEPA tariff refunds, including the timing and extent of these refunds. A further discussion of these risks, uncertainties, and other factors can be found in Part I, Item 1A. Risk Factors of our 2025 Form 10-K and our subsequent filings with the SEC.
We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors, except where we are expressly required to do so by law.
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