Ford Reports $11.1 Billion Net Loss in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Source: Fool
- Poor Financial Performance: Ford reported an $11.1 billion net loss in Q4, marking its worst financial performance since 2008 and the third-worst annual performance in its history, indicating ongoing pressure on profitability as the company has faced three annual losses in the past six years.
- Revenue vs. Expectations: Despite achieving $42.4 billion in automotive revenue for Q4, surpassing analysts' expectations of $41.83 billion, the adjusted earnings per share came in at $0.13, below the expected $0.19, highlighting a failure to convert revenue into profit and impacting investor confidence.
- Future Outlook: Ford anticipates 2026 as a turnaround year, projecting adjusted EBIT between $8 billion and $10 billion, an improvement from last year's $6.8 billion, and expects free cash flow to rise to between $5 billion and $6 billion, reflecting management's optimism about future performance.
- Tariff Impact: Unexpected tariff costs of approximately $900 million reduced Ford's EBIT from a confirmed $7.7 billion to $6.8 billion, compounded by the fire at the Novelis aluminum supplier plant, which will not be fully operational until mid-2026, emphasizing the external factors affecting the company's profitability.
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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: 14.410
Low
11.00
Averages
13.65
High
16.00
Current: 14.410
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. 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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- Sales Decline: The sales of Ford's F-Series declined by 13% in May and are down 15% year-to-date, with inventory dropping to approximately 183,900 units at the end of May, a 16% decrease from the previous year, posing challenges to the company's profitability.
- Production Recovery: Novelis has restarted production at its New York facility and is working closely with customers to accelerate the supply of aluminum products, which is critical for Ford as it approaches a popular selling season.
- Future Outlook: Despite the challenges, Ford expects to recover about half of the EBIT losses by 2026, with analysts predicting adjusted EBIT to range between $8.5 billion and $10.5 billion, indicating the company's potential for recovery amidst adversity.
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See More
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- Sales Decline: The F-Series saw a 13% drop in sales in May and a 15% decline year-to-date, with inventory down 16% compared to last year, illustrating the direct impact of supply chain issues on market demand.
- Production Recovery: Novelis has restarted production at its New York facility and is working closely with customers to expedite aluminum product supply, which is crucial for Ford as it approaches a popular selling season, helping to alleviate inventory pressures.
- Improved Profit Outlook: Despite challenges, Ford expects to recover approximately $750 million to $1 billion in EBIT by 2026, with analysts noting that favorable regulatory changes and potentially lower warranty costs could enhance the company's future profitability.
See More
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See More
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- Aluminum Supply Disruption: Ford's inventory of F-Series trucks has been severely impacted due to two fires at Novelis' aluminum production facility in New York, leading to an estimated loss of up to $2 billion and forcing the company to lower its 2025 profit forecast.
- Sales Decline: The sales of Ford's F-Series declined by 13% in May and are down 15% year-to-date, with inventory dropping to approximately 183,900 units at the end of May, a 16% decrease from the previous year, posing challenges to the company's profitability.
- Production Recovery: Novelis has restarted production at its New York facility and is working closely with customers to accelerate the supply of aluminum products, which is critical for Ford as it approaches a popular selling season.
- Future Outlook: Despite the challenges, Ford expects to recover about half of the EBIT losses by 2026, with analysts predicting adjusted EBIT to range between $8.5 billion and $10.5 billion, indicating the company's potential for recovery amidst adversity.
See More
Ford Enters Battery Storage Market with New Subsidiary
- New Business Launch: Ford has officially launched Ford Energy, a subsidiary focused on providing large-scale battery storage systems for data centers and the electric grid, marking a significant entry into the rapidly growing AI infrastructure market.
- Stock Price Fluctuation: Following the announcement of the new business, Ford's stock price surged above $17 but has since retreated to around $14, indicating mixed short-term market reactions that investors should consider carefully.
- Growing Market Demand: As the construction of new data centers accelerates, the demand for battery storage is skyrocketing, with Ford planning to produce at least 20 gigawatts of battery storage capacity annually to capitalize on this trend.
- Long-Term Investment Opportunity: While Ford Energy may not deliver immediate profits, Cramer believes that it will make Ford a more attractive investment in the long run, especially as oil prices and interest rates are expected to decline.
See More
Stellantis Faces Major Turnaround Challenges
- Stock Performance Divergence: Over the past three years, GM's stock surged 124%, Ford's gained a mere 4%, while Stellantis plummeted nearly 60%, highlighting significant differences in market performance that reflect each company's operational strategies and market acceptance.
- Recall Cost Pressure: Ford led the U.S. automotive industry in 2025 with 153 recalls, while Stellantis followed with 53; however, 80% of Ford's recalls were resolved via over-the-air software updates, minimizing repair costs, whereas Stellantis faced staggering warranty expenses of $7.4 billion, indicating quality control challenges.
- Warranty Expense Comparison: Stellantis's warranty costs accounted for 4.4% of total revenue, significantly exceeding the historical industry norm of 2% to 3%, while Ford's ratio stood at 3.1%, showing an upward trend, yet Ford's improvement in warranty claims reflects its commitment to quality management.
- Future Growth Potential: Stellantis plans to invest $70 billion over the next decade for a comprehensive product overhaul, with approximately 60% allocated to North America, aiming to launch 11 new models and achieve a 35% sales increase in the region, which could enhance market share and profitability if successful.
See More
Stellantis Faces Rising Recall Costs Amid Turnaround Efforts
- Recall Volume Analysis: Stellantis reported 53 recalls in the U.S. for 2025, significantly lower than Ford's 153, yet its recall costs soared to $7.4 billion, highlighting major quality control challenges.
- Warranty Cost Comparison: Stellantis's warranty expenses accounted for 4.4% of total revenue, well above the historical industry norm of 2% to 3%, which not only impacts profitability but also reflects its competitive disadvantage in the market.
- Turnaround Plan: Stellantis is executing a $70 billion turnaround plan aimed at launching 11 new models to boost sales volume in North America by 35%, which is crucial for regaining market share and improving financial health.
- Quality Improvement Strategy: Executives emphasize that enhancing product quality is central to their North American strategy, and if successful, Stellantis could lower warranty costs in the coming years, thereby improving overall financial performance.
See More
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- Supply Chain Crisis: Ford Motor Company faces a potential loss of up to $2 billion due to two factory fires at aluminum supplier Novelis, which have severely impacted the inventory of its critical F-Series pickups, hindering sales and profitability.
- Sales Decline: The F-Series saw a 13% drop in sales in May and a 15% decline year-to-date, with inventory down 16% compared to last year, illustrating the direct impact of supply chain issues on market demand.
- Production Recovery: Novelis has restarted production at its New York facility and is working closely with customers to expedite aluminum product supply, which is crucial for Ford as it approaches a popular selling season, helping to alleviate inventory pressures.
- Improved Profit Outlook: Despite challenges, Ford expects to recover approximately $750 million to $1 billion in EBIT by 2026, with analysts noting that favorable regulatory changes and potentially lower warranty costs could enhance the company's future profitability.
See More
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- Hybrid Performance: A study by iSeeCars reveals that conventional hybrids, among over 2.1 million three-year-old used vehicles sold in 2025, average 14,696 miles annually, outperforming gasoline vehicles by 10.3% and electric vehicles by 23.7%, highlighting their fuel efficiency benefits.
- High-Mileage Preference: Hybrids are often favored by high-mileage drivers, particularly in family-oriented models like minivans and SUVs, with the Chrysler Sienna hybrid leading as the most-driven model, reinforcing its market position.
- Gas vs. EV Comparison: Gasoline vehicles average 13,323 miles per year, while EVs lag at 11,880 miles, indicating a significant gap in overall usage, particularly among luxury and performance EVs like the Audi RS e-tron GT and Lucid Air, which are driven even less frequently.
- Usage Pattern Variations: The study indicates that family-oriented models consistently accumulate higher mileage, while sports and luxury vehicles tend to be driven less often, a trend that could influence future consumer preferences in the automotive market.
See More
