Ford beats earnings expectations, cautious 2025 outlook
Ford reported a stronger-than-expected fourth-quarter earnings and revenue, with full-year profit slightly surpassing expectations.
The results come after rival GM reported strong results but declined to return more cash to shareholders, News.Az reports, citing foreign media.
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 pre-market 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.
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