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 billion to $8.5 billion and adjusted free cash flow of $3.5 billion to $4.5 billion. 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 stock dropped 4% at the market open, hitting its lowest level since January 2021.
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 from the $46.2 billion reported last quarter and 5% higher than the $46 billion reported a year ago.
Ford also posted adjusted earnings per share 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 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.
For comparison, Wolfe Research estimates GM posted a $5 billion EBIT loss in its EV business and projects a $4.25 billion loss in 2025. GM does not break out the performance of its EV unit.
In early January, Ford said US sales in Q4 rose 8.8% versus a year ago, powered by F-Series sales that jumped 21.1% in the quarter. For the year, Ford reported a 4.2% jump in US sales, totaling approximately 2.079 million vehicles.
Ford’s “electrified” segment — or vehicles using both hybrid and fully electric powertrains — jumped 38% in 2024, hitting 285,291 units sold.
Ford hybrid sales were the majority of that total, hitting a record 187,426 — up 40% over 2023. Maverick hybrid pickup sales made up nearly one-third of that amount.
Ford's CEO calls for 'comprehensive' tariff policy
Farley also touched on tariffs that are set to begin on Canadian and Mexican imports starting on March 1.
While Ford could weather tariffs for a few weeks, long-term tariffs would have a "devastating impact," Farley said on the call.
Read more: What are tariffs, and how do they affect you?
Ford's CEO also called for a more "comprehensive" tariff policy due to other automakers who pay no tariffs in the current scheme, which he called a "bonanza" for those automakers.
"What doesn’t make sense to me is why we’re having this conversation while Hyundai-Kia is importing 600,000 units into the US with no incremental tariff, and why is Toyota able to import half a million vehicles into the US with no incremental tariffs?" Farley said. "I mean, there are millions of vehicles coming into our country that are not being applied to these; so if we’re going to have a tariff policy … it better be comprehensive for our industry."
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram .
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