AI Takeaway
GM's FY2025 10-K reveals a sharp 77.2% decline in operating income to $2.9B and a 54.8% drop in net income to $2.7B on slightly lower revenue of $185.0B, even as operating cash flow surged 33.5% to $26.9B.
Revenue
$185.02B
-1.29% YoY
EPS (Basic)
$3.33
-48.37% YoY
Operating Income
$2.91B
-77.24% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
GM reported FY2025 revenue of $185.0B, down 1.3% from $187.4B in the prior year, reflecting modest top-line pressure likely driven by pricing normalization and volume mix shifts in a competitive automotive market.
Source: Source: 10-K Income Statement
Operating income collapsed 77.2% year-over-year from $12.8B to $2.9B, driving the operating margin down from 6.8% to just 1.6%, signaling significant cost headwinds or one-time charges that dramatically eroded profitability.
Source: Source: 10-K Income Statement
Despite weak earnings, GM generated $26.9B in operating cash flow in FY2025, a 33.5% increase from $20.1B in the prior year, suggesting strong working capital management and non-cash add-backs (D&A of $12.0B).
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockOperating margin fell from 6.8% to 1.6% in FY2025, a decline of over 500 basis points. This level of margin erosion, if sustained, could threaten GM's ability to fund EV investments and service its substantial debt load. The root causes—whether restructuring charges, EV losses, or pricing pressure—require close monitoring.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $2.51 versus the $2.28 analyst consensus — a +10.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $185.02B | $187.44B | -1.29% |
Operating Income | $2.91B | $12.78B | -77.24% |
Net Income | $2.7B | $5.96B | -54.77% |
EPS (Basic) | $3.33 | $6.45 | -48.37% |
EPS (Diluted) | $3.27 | $6.37 | -48.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $281.28B | $279.76B | +0.54% |
Current Assets | $108.77B | $108.55B | +0.20% |
Total Liabilities | $218.12B | $214.17B | +1.84% |
Current Liabilities | $93.34B | $96.27B | -3.04% |
Stockholders' Equity | $61.12B | $63.07B | -3.10% |
Cash & Equivalents | $20.95B | $19.87B | +5.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $26.87B | $20.13B | +33.47% |
Investing Cash Flow | $-16.13B | $-20.52B | +21.36% |
Financing Cash Flow | $-9.59B | $1.94B | -594.84% |
Dividends Paid | $657M | $653M | +0.61% |
Share Buybacks | $6.01B | $7.06B | -14.89% |
D&A | $11.98B | $11.46B | +4.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 1.6% | 6.8% | -5.25% |
Net Margin | 1.5% | — | — |
ROE | 4.4% | — | — |
ROA | 1.0% | — | — |
Current Ratio | $1.165 | — | — |
Debt to Equity | $3.569 | — | — |
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GM's FY2025 earnings were significantly weaker than the prior year, with net income falling 54.8% to $2.7B and diluted EPS dropping 48.7% to $3.27. Operating income was hit even harder, declining 77.2% to $2.9B, suggesting substantial cost pressures or one-time charges impacted profitability.
No, GM's revenue declined slightly by 1.3% to $185.0B in FY2025 from $187.4B in the prior year. While the top-line decline was modest, the dramatic drop in operating income indicates costs rose far faster than the revenue decline alone would suggest.
The most striking takeaway from GM's FY2025 10-K is the severe compression in operating margin from 6.8% to 1.6%, even as operating cash flow surged 33.5% to $26.9B. This divergence between earnings and cash flow points to significant non-cash charges or restructuring costs in the period, while underlying business cash generation remained robust.
GM's financial health in FY2025 is mixed: the company holds $20.9B in cash and generated strong operating cash flow of $26.9B, but carries $218.1B in total liabilities and a high debt-to-equity ratio of 3.57x. The current ratio of 1.17x suggests adequate short-term liquidity, though thin margins of 1.6% operating and 1.5% net leave limited room for error.
Yes, GM repurchased $6.0B in shares during FY2025, though this was 14.9% lower than the $7.1B bought back in the prior year. Combined with $657M in dividends, GM returned approximately $6.7B to shareholders despite significantly weaker earnings.