Ford's Earnings Fall Short, CEO Predicts Improvement by 2026

• Ford's quarterly core profit fell 50% to $1 billion, with adjusted EPS of 13 cents missing analyst expectations, while the company narrowly missed its revised annual EBIT guidance of $7 billion, posting $6.8 billion
• The automaker's EV and software unit recorded $4.8 billion in losses for 2025 and projects $4-4.5 billion in losses for 2026 as it pivots strategy to focus on a new $30,000 EV platform and electric pickup designed by a California-based team
• Trump's tariffs will add roughly $2 billion in costs in 2026, primarily affecting aluminum sourcing for F-150 trucks, while Ford stock has risen 47% to around $14 per share despite industrywide challenges facing legacy automakers

Ford Earnings Summary

Key Financial Results

Ford Motor reported a Q4 net loss of $11.1 billion, driven by substantial writedowns on its electric vehicle programs. Adjusted earnings per share came in at 13 cents, missing analyst expectations. However, Q4 revenue of $45.9 billion beat forecasts. Core quarterly profit plummeted approximately 50% to $1 billion due to higher-than-expected costs from a fire at an aluminum supplier.

For full-year 2025, Ford posted earnings before interest and taxes (EBIT) of $6.8 billion, narrowly missing its revised $7 billion guidance.

2026 Outlook and Challenges

Ford projects 2026 EBIT of $8-10 billion, aligning with the median analyst expectation of $8.78 billion. The automaker anticipates approximately $2 billion in costs this year from President Trump's tariffs, particularly affecting aluminum sourcing for its profitable F-150 trucks.

The EV division recorded $4.8 billion in losses for 2025, with projected losses of $4-5.5 billion expected in 2026. These challenges were compounded by the elimination of the $7,500 consumer EV tax credit by Congress.

Strategic Direction

CEO Jim Farley emphasized cost reduction and faster development cycles to compete globally, particularly against Chinese automakers. Ford is developing a $30,000 EV platform and planning an electric pickup launch next year through its California-based EV team. The company is pursuing partnerships with Renault in Europe and reportedly in talks with Chinese automaker Geely.

Despite challenges, Ford's stock has risen 47% to approximately $14 per share, contrasting sharply with competitor Stellantis, which faced a 44% decline following its own $26.5 billion in charges.