SHERIDAN, WYOMING – Feb. 27, 2025 – General Motors (NYSE: GM) has announced significant steps to enhance shareholder value, including a substantial increase in its quarterly dividend and a new $6 billion share repurchase authorization. The company has also initiated an accelerated share repurchase (ASR) program to execute $2 billion of the approved repurchase.
Increased Dividend and Share Repurchase Authorization
The GM Board of Directors has approved a $0.03 per share increase in the quarterly common stock dividend rate, raising it to $0.15 per share. This increase will take effect with the company’s next planned dividend, expected to be declared in April 2025. Additionally, a new $6 billion share repurchase authorization has been approved, signaling the company's confidence in its financial strength and future prospects.
“The GM team’s execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment grade balance sheet, and return capital to our shareholders,” said Mary Barra, chair and CEO. “We are growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs. At the same time, we are investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows.”
Strategic Capital Allocation
GM's capital spending for 2025 is projected to be between $10 billion and $11 billion, encompassing investments in its battery cell manufacturing joint ventures. Research and product development expenditures are anticipated to exceed $8 billion. This strategic allocation of capital underscores GM’s commitment to innovation and sustainable growth.
“We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy,” said Paul Jacobson, executive vice president and CFO. “The repurchase authorization our board approved continues a commitment to our capital allocation policy.”
Accelerated Share Repurchase Program
To swiftly execute a portion of the share repurchase authorization, GM has entered into an ASR program. Under this program, GM will advance $2 billion to executing banks, Barclays and J.P. Morgan, to receive and retire GM common stock. The total number of shares repurchased will be determined upon final settlement, based on the average of the daily volume-weighted average prices of GM’s common stock during the program's term. The ASR program is expected to conclude in the second quarter of 2025.
Remaining Share Repurchase Capacity
Outside of the ASR program, GM will retain $4.3 billion of capacity under its share repurchase authorizations for additional, opportunistic share repurchases. This flexibility allows GM to capitalize on market conditions and further enhance shareholder returns.
Financial Performance and Shares Outstanding
In 2024, GM’s weighted average common shares outstanding was 1.055 billion. As of December 31, 2024, the company had less than 1 billion total shares outstanding, demonstrating its commitment to reducing share count and increasing earnings per share.
General Motors: Driving the Future of Transportation
General Motors (NYSE:GM) is at the forefront of the transportation industry, leveraging advanced technology to develop safer, smarter, and lower emission vehicles. GM’s portfolio includes Buick, Cadillac, Chevrolet, and GMC brands, offering a wide range of innovative gasoline-powered vehicles and the industry’s broadest selection of electric vehicles (EVs). As the company progresses towards an all-electric future, it remains dedicated to delivering cutting-edge solutions for its customers.
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