GM is a structurally improved truck-and-cash-flow powerhouse buying back its stock aggressively while building a high-margin software/autonomy call option that could finally force a valuation re-rate.
Overview
General Motors is in a major transformation from a traditional automaker into a platform-oriented technology and services business centered on EVs, autonomy, and software, while still relying on a highly profitable ICE truck/SUV franchise to fund the shift. The company operates across GM North America and GM International with GM Financial as its captive finance arm, and remains a dominant U.S. player via its “Big Four” brands (Chevrolet, Cadillac, GMC, Buick). FY2025 revenue was ~$185.0B with EBIT-adjusted ~$12.7B and adjusted automotive FCF ~$10.6B, underscoring the cash-generation power of its core portfolio. North America is the primary profit center; China has improved materially with six consecutive profitable quarters into early 2026. Revenue is still largely wholesale vehicle sales, but is increasingly supplemented by higher-margin recurring software/services (OnStar, Super Cruise), with deferred revenue already >$5B. Management is also using strong cash flow to aggressively reduce share count (~35% since late 2023), amplifying per-share earnings and setting up potential multiple re-rating if EV profitability and autonomy milestones are delivered.