Ford Reports Q4 Earnings Beat, Conservative Guidance
Ford Motor Company (F) posted strong Q4 results, exceeding estimates for both revenue and earnings per share (EPS). However, the company tempered optimism with conservative full-year guidance.
Key Results:
* Revenue: $48.2 billion (beat by 11.8%)
* Adjusted EPS: $0.39 (beat by 21.9%)
* Adjusted EBIT: $2.1 billion
Full-Year Guidance:
* Adjusted EBIT: $7.0-$8.5 billion
* Adjusted Free Cash Flow: $3.5-$4.5 billion
Outlook:
Ford's guidance reflects challenges such as pricing pressures and potential policy changes. CFO Sherry House highlighted the significant impact a 25% import tariff would have on the industry.
Segment Performance:
* Ford Blue (traditional gas-powered): $27.3 billion revenue, $1.581 billion EBIT
* Ford Model e (electric vehicles): $1.4 billion revenue, -$1.389 billion EBIT
* Ford Pro (commercial vehicles): $16.2 billion revenue, $1.629 billion EBIT
Model e Losses:
The Model e segment continued to post losses, with a full-year EBIT loss of $5.1 billion. Ford anticipates losses to remain in 2025, despite increased EV volume.
Industry Comparison:
* General Motors (GM): Wolfe Research estimates GM's EV unit posted a $5 billion EBIT loss in 2024, projecting a $4.25 billion loss in 2025.
Tariffs:
Ford CEO Jim Farley expressed concerns over the potential impact of tariffs on Canadian and Mexican imports. He advocated for a comprehensive tariff policy that treated all automakers equally.
Other Highlights:
* Ford anticipates $1 billion in cost savings.
* US sales rose 8.8% in Q4, driven by F-Series sales.
* "Electrified" segment grew by 38% in 2024.