General Motors Company

Good morning and welcome to the General Motors Company fourth quarter and full year 2025 conference call. During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question and answer session. We are asking analysts to limit their questions to one and a brief follow-up. To ask a question, press star then one on your telephone keypad to join the queue. To withdraw your question, press star then two. As a reminder, this conference call is being recorded Tuesday, January 27, 2026. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the fourth quarter and full year 2025. Our conference call materials were issued this morning and are available on GM's Investor Relations website. We are also broadcasting this call via webcast. Joining us today are Mary Barra, GM's Chair and CEO, along with Paul Jacobson, GM's Executive Vice President and CFO. Susan Sheffield, President and CEO of GM Financial, will also be joining us for the Q&A portion. On today's call, management will make forward-looking statements about our expectations. These statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the safe harbor statement on the first page of our presentation, as the content of this call will be governed by this language. And with that, I'm delighted to turn the call over to Mary.

Thank you, Ashish, and good morning, everyone. I'm incredibly proud of our global team, including our dealers and suppliers, for delivering an exceptional 2025. Together, we grew the business and adapted to significant changes in tax and trade policy to deliver full-year EBIT adjusted at the high end of our guidance range. We are pleased that we delivered a total return of 54% for our investors, and I'd like to share some of the operating highlights that underscore our momentum. In the United States, we achieved our highest full-year market share in a decade. In fact, 2025 was our fourth consecutive year of market share growth and we continue to deliver with low inventory, low incentives, and strong pricing. Once again, GM led the industry in full-size pickups and full-size SUVs, and we had our best year ever in crossovers driven by vehicles like the redesigned Chevrolet Equinox and Traverse. We have also been very successful with smaller, profitable crossovers like the Chevrolet Trax and Buick and Vista because we provide tremendous value with great styling, technology, and a suite of safety features at some of the lowest prices in the markets. We're very proud that Car and Driver named Chevrolet Trax to its 10 best list for the third year in a row, joining the Chevrolet Corvette, Cadillac CT5V Blackwing, and our full-size SUVs. Not only that, but the Cadillac Escalade IQ won Motor Trend's prestigious SUV and Technology of the Year awards. Lastly, the vehicle and technology solutions that GM Involved delivers to our commercial, government, and rental customers helped us lead the U.S. fleet segment for the second consecutive year. We demonstrated another true core competency throughout the year, our agility and speed in adapting to change. We proactively managed our net tariff exposure, reducing it well below our initial expectations, thanks to self-help initiatives and policy actions that support companies like GM that have substantial and growing commitments to American manufacturing. We were also quick to respond to slowing EV demand by selling our share in the Ultium Cells Lansing plant and pivoting Oren Assembly from EV to ICE production. Our compelling vehicle and technology portfolio, a resilient U.S. market, and the steps we have taken to strengthen our position should help make 2026 an even better year for GM. The charges we took in the second half of the year to reduce EV capacity will reduce our fixed costs and resolve the majority of our commercial claims tied to lower volumes. In addition, our warranty expense is moving in the right direction, and our EB losses will be lower. As a result, we expect full-year EBIT adjusted margins in North America will be back in the 8% to 10% margin range. We are also operating in a U.S. regulatory and policy environment that is increasingly aligned with customer demand. This allows us to onshore more production to help meet strong demand for our ICE vehicles. We continue to believe in EVs, and our portfolio brought almost 100,000 new customers to GM last year. We know EV drivers don't often go back to ICE, so we'll continue executing our plan to dramatically reduce costs and to be well-positioned for the future. This will require continued investment, but at much lower levels, and I'm confident in our path to profitability. Our strong foundation and operating discipline are why our average annual free cash flow generation has structurally improved from $3 billion to $10 billion over the last five years. Consistently strong cash generation has allowed us to execute all phases of our capital allocation program, from investing in the business and our people to maintaining a strong balance sheet and returning capital to shareholders. We believe that formula is sustainable, which is why we are increasing our quarterly dividend rate by 20% and planning future share repurchases. The growth of OnStar Services and SuperCruise further underscores our confidence. In 2025, OnStar had a record 12 million subscribers, including more than 620,000 Super Cruise subscribers, achieving nearly 80% year-over-year growth. OnStar fleet subscriptions hit 2 million, which is two times any other competitor. This year, we will continue to grow our Super Cruise business in North America and expand into South Korea, the Middle East, and Europe. We expect our deferred revenue from software and services to be approximately $7.5 billion by the end of this year, up nearly 40% from 2025. We are also confident in the turnaround of our China business and our growing new energy vehicle portfolio. They are now about 50% of sales in China and profitable across all price points. As we look further ahead, our annual production in the U.S. is expected to rise to an industry-leading 2 million units after we begin production of the Chevrolet Equinox in Kansas, bring the Chevrolet Blazer to Tennessee, and and at incremental capacity for the Cadillac Escalade, and launch our next-generation full-size pickups at Orion Assembly in Michigan. We are also launching our sixth-generation small-block V8, and the engineering teams are leveraging world-class virtual tools to deliver better fuel efficiency and power for our customers and faster development times. We reached our performance and emission goals in a third of the time versus the prior program by conducting thousands of combustion chamber simulations while we reduce prototyping for a 20% savings in material and tooling costs. AI, machine learning, and robotics are also driving safety, quality, and speed in our manufacturing plants so we can get great products and technologies into the hands of customers faster. For example, a cross-functional team developed a predictive weld quality model that has enabled us to deliver even more consistent welds and tighter control, directly improving cost and quality. We are also deploying robotic systems alongside humans to make their jobs safer and easier to perform. For example, a robot can pick up an exhaust system and position it so a single operator can complete the installation without strain. Our robotics and AI work will converge at Orion Assembly, where planned upgrades include advanced vision systems and the installation of 2,500 robot and co-bots controlled by GM design software. Then in 2028, we expect to launch our breakthrough LMR battery chemistry. LMR will help us reduce cell and pack costs by several thousand dollars. Also in 2028, we expect to launch our second-generation software-defined vehicle architecture for ICE vehicles and EVs. It will unite every major system from propulsion to infotainment and safety on a single high-speed compute core. The performance upgrade includes 10 times more OT capacity and 1,000 times more bandwidth. allowing our vehicles to get better, smarter, and deliver more value to our customers over time. It's also an enabler for our eyes-off, hands-off driving technology. This technology and our new software architecture will both launch on the Cadillac Escalade IQ in 2028. With our Super Cruise experience, the expertise we brought in-house from Cruise, and our learnings from millions of miles of fully autonomous driving, we believe we have everything we need to deliver a safe, reliable, and highly capable system the customers will embrace. Safety is key to building trust in new technologies, as we've demonstrated with Super Cruise. For our eyes-off solution, we are building in redundancy with LiDAR, radar, and cameras, and we will begin on highways. Finally, I want to mention that we are hosting our call today from our new global headquarters in Hudson's, Detroit. This beautiful space is designed for the collaborative and tech-enabled way people work today, while also saving us tens of millions of dollars annually. It's the latest example of our commitment to operate as efficiently and as profitably as we can. Thank you, and now I'll turn the call over to Paul.