General Motors anticipates its profit will increase by up to $2 billion this year, with plans to return more earnings to shareholders through dividend hikes and stock buybacks, primarily driven by robust demand for its high-margin vehicles.

The company stated in a Tuesday announcement, which also disclosed its fourth fiscal quarter results, that it expects adjusted EBIT for the year to fall between $13 billion and $15 billion, surpassing last year's figure of $12.7 billion. General Motors reported fourth-quarter earnings per share of $2.51, exceeding the Wall Street analyst consensus estimate of $2.28.

The company's performance outlook underscores that sales of new, higher-priced models combined with a more lenient regulatory climate are powerfully driving profit growth. Even with the U.S. new vehicle market projected to contract slightly this year and potential tariff impacts on some imported vehicles and components, the automaker still expects to generate sufficient profit to enhance returns for its shareholders.