After the bell on Tuesday, Ford announced fourth‑quarter automotive revenue of $42.40 billion, matching consensus expectations. Adjusted earnings per share came in at $0.13, short of the $0.19 forecast, while adjusted EBIT was $1.00 billion versus the expected $1.16 billion. The quarter ended with a net loss of $11.1 billion, and the full year saw a net loss of $8.2 billion, largely driven by special items the company cited.
On an adjusted basis, Ford’s full‑year EBIT was $6.8 billion, close to its own forecast of about $7 billion but well below analysts’ estimate of $8.86 billion. Adjusted free cash flow for the year was $3.5 billion, right in the middle of the company’s projected range. The results were hit by a $900 million increase in tariff costs after a change announced by the White House in December, as well as a $2 billion net tariff cost for the year.
Last December, Ford took a $19.5 billion charge related to a pivot in its electric‑vehicle (EV) strategy. About $12.5 billion of that was recognized in the fourth quarter, with the remaining $7 billion expected to be booked over 2026 and 2027. The Model EV unit reported a $4.8 billion EBIT loss for the year, an improvement of 299 basis points over 2024.
During a conference call, CFO Sherry House said the path to EV profitability is not expected until 2029, when the company will bring its Renault‑based EVs to Europe and launch its Universal EV platform globally. She also highlighted the $2 billion impact from a Novelis aluminum plant fire that disrupted F‑Series truck production.
CEO Jim Farley praised the company’s 2025 performance, noting stronger core operations, reduced material and warranty costs, and quality gains. He emphasized that the tough but strategic decisions made in 2025 set Ford up for a stronger future.
Looking ahead, Ford projects adjusted EBIT for 2026 between $8 billion and $10 billion, adjusted free cash flow of $5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion. The Model e unit is expected to post another loss of $4 billion to $4.5 billion.
Ford also warned that first‑half EBIT in 2026 will lag behind the second half, as temporary aluminum sourcing for its F‑Series pickups will push up costs. The company expects the Novelis plant disruption to “normalize” by year‑end.
Meanwhile, the Mustang Mach‑E is slated to hit dealership lots on June 24, 2025 in Austin, Texas, and the Novelis plant is expected to be fully operational by mid‑year, according to CFO House.
By 2029, Ford aims for an adjusted EBIT margin of 8%, up from the 3.6% margin recorded in 2025. Under the Ford+ plan, the company has split its operations into Ford Blue (traditional combustion), Model e (electric), and Ford Pro (commercial and heavy‑duty trucks).
In the fourth quarter, Ford Blue generated $26.2 billion in revenue and $727 million in EBIT; Model e produced $1.3 billion in revenue but incurred a $1.22 billion EBIT loss; and Ford Pro earned $14.9 billion in revenue with $1.23 billion in EBIT.
Despite the challenges, U.S. sales rose 2.7% year‑over‑year in Q4, driven by trucks and hybrids, and grew 6% over the year to about 2.2 million vehicles. In comparison, a rival automaker saw a 5.5% sales increase to 2.85 million vehicles. Both companies experienced a 50% drop in EV sales after the federal EV tax credit expired, underscoring the impact of policy changes on the market.
