Ford Pleased With Fourth-Quarter Earnings And Revenue

Ford has announced its fourth-quarter earnings and revenue, reporting an annual profit that slightly exceeds expectations, though the company provided a cautious outlook for the upcoming year.

Ford anticipates an adjusted (Earnings Before Interest and Taxes) EBIT for 2025 ranging from $7.0 billion to $8.5 billion, along with an adjusted free cash flow between $3.5 billion and $4.5 billion. The company noted that this forecast “assumes challenges from market factors,” particularly in pricing, and does not account for possible policy shifts, such as the loss of tax incentives or tariffs on electric vehicles. CFO Sherry House mentioned to reporters that a 25% tariff on imports “would significantly affect our industry.” In contrast, Ford’s 2024 results showed an adjusted EBIT of $10.2 billion, with revenue reaching $185 billion and a net income of $5.9 billion. Previously, Ford had estimated that the adjusted EBIT for 2024 would be “around $10 billion.”

Ford shares fell 4% in after-hours trading.

Ford also said it expects adjusted EBIT for the first quarter of 2025 to be “roughly breakeven” due to lower sales and an unfavourable product mix, including new product launch activity at Ford’s U.S. plants.

“In 2025, we expect to make significant progress in our two biggest areas of opportunity—quality and price—as we enter the heart of our Ford+ transformation,” Ford CEO Jim Farley said in an earnings call. “We are controlling these key profit drivers, and I am confident we are on track to create long-term value for all of our shareholders.”

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