GM Financial Posts Solid Third Quarter 2025 Results, Driven by Consistent Earnings and Stable Credit Performance
General Motors Financial Company, Inc. (“GM Financial” or the “Company”) reported another strong quarter, underscoring its position as a key contributor to General Motors’ overall financial performance. For the quarter ended September 30, 2025, the Company announced net income of $589 million, marking an increase from $499 million in the same period last year. Net income for the first nine months of 2025 held steady at $1.6 billion, matching the results for the corresponding period in 2024.
This performance reflects GM Financial’s continued ability to maintain profitability across changing market conditions, supported by disciplined risk management and steady credit quality within its retail and lease portfolios.
Retail Loan Performance
Retail loan originations totaled $8.8 billion in the third quarter of 2025, compared with $9.5 billion in the previous quarter and $9.4 billion in the third quarter of 2024. While quarterly originations moderated slightly due to seasonal factors and evolving consumer financing trends, overall year-to-date results demonstrated healthy momentum.
For the first nine months of 2025, retail loan originations reached $27.9 billion, up from $26.3 billion during the same period last year, reflecting a steady demand for vehicle financing across GM’s product lineup. The outstanding balance of retail finance receivables stood at $75.9 billion as of September 30, 2025, compared to $77.8 billion at the end of the previous quarter and $74.4 billion a year earlier.
This consistency highlights GM Financial’s disciplined approach to portfolio management and customer retention, balancing growth with prudent underwriting standards.
Operating Lease Portfolio
Operating lease originations for the quarter totaled $5.0 billion, compared to $5.4 billion in the previous quarter and $4.9 billion in the third quarter of 2024. Lease originations for the first nine months of 2025 reached $15.3 billion, a notable increase from $14.1 billion for the same period last year.
The net leased vehicle portfolio expanded to $33.6 billion at the end of the third quarter, up from $33.2 billion as of June 30, 2025, and $31.0 billion as of September 30, 2024. The growth reflects strong consumer interest in leasing options and the enduring appeal of GM’s latest model lineup.
Commercial Finance Receivables
The outstanding balance of commercial finance receivables—which includes dealer and fleet financing—stood at $17.1 billion as of September 30, 2025. This represents a modest increase from $16.7 billion at the end of June 2025, though still below the $19.0 billion recorded a year earlier. The trend aligns with a normalization of dealer inventory financing needs following earlier post-pandemic supply fluctuations.
Credit Quality and Delinquency Metrics
GM Financial continued to demonstrate stable credit performance, with delinquency rates remaining largely unchanged year over year. Retail finance receivables 31–60 days delinquent accounted for 2.3% of the portfolio at both September 30, 2025, and September 30, 2024. Accounts more than 60 days delinquent made up 0.9% of the portfolio, slightly higher than 0.8% a year earlier, indicating a largely steady trend in consumer payment behavior despite broader economic pressures.
Annualized net charge-offs remained consistent at 1.2% of average retail finance receivables for both the third quarters of 2025 and 2024. For the first nine months of 2025, charge-offs also averaged 1.2%, compared to 1.1% in the same period last year—further evidence of resilient portfolio health and disciplined credit risk management.
Strong Liquidity Position
GM Financial ended the quarter with a robust liquidity profile totaling $37.2 billion, ensuring flexibility and stability in funding future operations and supporting GM’s strategic initiatives. This liquidity comprised:
- $7.8 billion in cash and cash equivalents
- $25.4 billion in borrowing capacity on unpledged eligible assets
- $0.9 billion in borrowing capacity on committed unsecured lines of credit
- $1.0 billion in borrowing capacity on the Junior Subordinated Revolving Credit Facility from GM
- $2.0 billion in borrowing capacity on the GM Revolving 364-Day Credit Facility
This diversified funding base provides GM Financial with strong access to liquidity across multiple channels, supporting continued loan and lease originations while ensuring the company remains well-prepared for future market fluctuations.
Looking ahead, GM Financial remains focused on sustaining profitability through disciplined credit management, diversified funding, and close alignment with GM’s evolving vehicle strategy—including the growing mix of electric vehicles (EVs). The Company’s consistent performance amid changing economic conditions reinforces its role as a critical enabler of GM’s retail and dealer ecosystem.
As consumer preferences evolve and vehicle affordability remains a key industry focus, GM Financial continues to deliver value through flexible financing solutions and strong risk-adjusted returns. With stable asset quality and solid liquidity, the Company is positioned for steady performance through the remainder of 2025 and beyond.
