Ford misses Q4 profit, gives stronger outlook

Investing.com -- Ford Motor’s fourth-quarter missed on profit, but beat revenue expectations, while outlining a stronger earnings and cash flow outlook for 2026 amid higher cost pressures from tariffs. Shares were up 1% in extended trading.

The Dearborn, Michigan–based automaker reported Q4 adjusted earnings of $0.13 per share, missing analysts’ estimates by $0.05.

Revenue rose to $45.9 billion, topping consensus forecasts of $44.2 billion. For 2025, Ford generated $187.3 billion in revenue.

Ford reported a net loss of $11.1 billion in the fourth quarter and $8.2 billion for the full year, reflecting the impact of special items.

On an adjusted basis, fourth-quarter EBIT came in at $1.0 billion, while full-year adjusted EBIT totaled $6.8 billion. Full-year operating cash flow was $21.3 billion, with adjusted free cash flow of $3.5 billion.

Ford forecast full-year 2026 adjusted EBIT of $8 billion to $10 billion, alongside adjusted free cash flow of $5 billion to $6 billion. Capital spending is expected to range between $9.5 billion and $10.5 billion on continued investment in next-generation products and efficiency improvements.

CEO Jim Farley said Ford delivered a “strong 2025 in a dynamic and often volatile environment,” pointing to progress in lowering material and warranty costs and improvements in vehicle quality.

CFO Sherry House added that a disciplined approach to capital efficiency and a robust product roadmap should support margin expansion in the coming years.

Ford said it expects around $2 billion in costs this year linked to tariffs imposed under President Donald Trump, much of it tied to aluminum sourcing for its high-margin F-150 pickup trucks.

The company reiterated its long-term goal of achieving an 8% adjusted EBIT margin by 2029, as it works to balance cost headwinds with improving execution across its core and electric vehicle businesses.

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