**General Motors Company (GM) reported a significant increase in free cash flow (FCF), climbing from approximately $3 billion to $10 billion annually over the past five years.** This robust performance has allowed GM to enhance its capital allocation strategy, leading to a 20% increase in its quarterly dividend and plans for additional share repurchases. The company also generated nearly $25 billion in FCF in the last two years, investing over $20 billion in capital projects aimed at growth and strategic priorities.
Looking forward to 2026 and 2027, GM aims to invest between $10 billion and $12 billion annually, with about $5 billion earmarked for expanding U.S. manufacturing capacity for its highest-demand vehicles. In terms of market performance, GM’s shares have risen by 24.6%, notably outperforming the Zacks Automotive-Domestic industry, which grew by just 8.7%. Current estimates also signal a positive outlook, with EPS expectations for 2026 and 2027 rising recently by 2 cents and 10 cents, respectively.
