Ford Reports Q4 Results Below Expectations Amid EV Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Disappointing Financials: Ford reported a net loss of $11.1 billion for Q4 and $8.2 billion for the year, primarily due to its EV business, while adjusted EBIT of $6.8 billion was close to the forecast of $7 billion but fell short of the $8.86 billion expected, highlighting challenges during the company's transition.
- Optimistic Future Outlook: The company projects adjusted EBIT of $8 billion to $10 billion for 2026, with adjusted free cash flow of $5 billion to $6 billion and capital expenditures of $9.5 billion to $10.5 billion, indicating confidence in future profitability despite another anticipated loss of $4 billion to $4.5 billion from its Model e unit.
- Sales Growth Trend: Despite a 50% drop in EV sales following the expiration of federal tax credits, Ford's U.S. sales rose 2.7% in Q4 and 6% for the year, totaling approximately 2.2 million vehicles, demonstrating strong demand for its traditional gas-powered and hybrid vehicles.
- Strategic Adjustments and Goals: Ford aims for an 8% adjusted EBIT margin by 2029, up from 3.6% in 2025, by restructuring its business into three units: Ford Blue, Ford Model e, and Ford Pro, to enhance operational efficiency and market competitiveness.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.000
Low
11.00
Averages
13.65
High
16.00
Current: 14.000
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Transformation Plan: Ford aims to tackle market challenges through a three-pronged strategy focusing on its high-margin Ford Pro commercial vehicle division, refreshing its passenger vehicle lineup, and improving operational efficiencies, which is intended to strengthen its foothold in the competitive European market.
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See More
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