General Motors' core profit rises on higher demand for SUVs, pickup trucks

By Kalea Hall and Nathan Gomes

Jan 27 (Reuters) - General Motors GM.N reported a higher fourth-quarter core profit on Tuesday, helped by stronger sales of its affordable crossover SUVs and pickup trucks through the year.

Its pre-tax earnings on an adjusted basis rose about 13% to $2.84 billion compared with about $2.51 billion a year ago.

The company said it expects an annual adjusted core profit of $13 billion to $15 billion, a range whose midpoint exceeded analysts' expectation of $13.39 billion, according to LSEG data.

GM's net income was impacted by a $6 billion charge due to the electric-vehicle pullback. A big share of the charge is tied to contract cancellations and settlements with suppliers, who had planned for much higher production volumes before the market turned.

The company, however, was optimistic for 2026 as it backed its EV strategy, raised its quarterly dividend payout by 20% and approved a new $6 billion share buyback program.

Its overall quarterly revenue fell by 5.1% to about $45.3 billion from a year ago.