Ford (F) reported a fourth quarter earnings and revenue beat, with full-year profit coming in slightly higher than expected, but the company issued muted full-year guidance. The results come after rival GM (GM) reported strong results but declined to return more cash to shareholders.
Ford said it sees full-year 2025 adjusted EBIT of $7.0 billion to $8.5 billion, and $3.5 billion to $4.5 billion in adjusted free cash flow. Ford said the guidance «presumes headwinds related to market factors,» such as pricing, though that does not include changes in policy like the potential loss of EV tax credits or tariffs. CFO Sherry House added in a call with reporters that a 25% tariff on imports «would have a major impact on our industry.»
For comparison, Ford reported 2024 adjusted EBIT of $10.2 billion, on revenue of $185 billion and net income of $5.9 billion. Last quarter, Ford guided 2024 adjusted EBIT «to be about $10 billion.»
Ford shares dropped 4% in after-hours trading.
Ford also said it expects Q1 2025 adjusted EBIT to be «roughly breakeven» due to lower sales and unfavorable product mix, including new product launch activity at Ford factories in the US.
“In 2025, we expect to make significantly more progress on our two biggest areas of opportunity — quality and cost — as we enter the heart of our Ford+ transformation,» Ford CEO Jim Farley said in the earnings statement. «We control those key profit drivers, and I am confident that we are on the right path to create long-term value for all our stakeholders.”
House added on the call with reporters that Ford anticipates $1 billion in cost savings.
For the fourth quarter, Ford reported revenue of $48.2 billion vs $43.01 billion estimated, up compared to the $46.2 billion reported last quarter and 5% higher than the $46.0 billion reported a year ago.
Ford also posted adjusted EPS of $0.39 vs $0.32 expected, on adjusted EBIT of $2.1 billion.
As part of its Ford+ plan, Ford divided its business into three units: Ford Blue for the traditional gas-powered business, Ford Model e for the electric vehicle division, and Ford Pro for its commercial and super duty truck business. Ford reported the following in Q4:
Ford Blue: $27.3 billion in revenue, $1.581 billion in EBIT
Model e: $1.4 billion in revenue, -$1.389 billion in EBIT
Ford Pro: $16.2 billion in revenue, $1.629 billion in EBIT
Ford said the Model e segment posted a full-year EBIT loss of $5.1 billion, and expects losses to stay the same in 2025. House noted that this presumes higher EV volume, and that performance in Q3 and Q4 of 2024 improved. However, Ford vice chair John Lawler added that the Model e segment would face «top-line pressure» through the year, due to rising supply and uneven demand.
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