Ford Reports Earnings Beat, Muted Guidance for 2025
Key Metrics:
* Revenue: $48.2 billion, exceeding estimates of $43.01 billion
* Adjusted EPS: $0.39, surpassing expectations of $0.32
* Adjusted EBIT: $2.1 billion
* Full-year 2025 Adjusted EBIT guidance: $7.0 billion to $8.5 billion
* Full-year 2025 Adjusted Free Cash Flow guidance: $3.5 billion to $4.5 billion
Business Segment Performance:
* Ford Blue: $27.3 billion in revenue, $1.581 billion in EBIT
* Ford Model e: $1.4 billion in revenue, -$1.389 billion in EBIT
* Ford Pro: $16.2 billion in revenue, $1.629 billion in EBIT
Outlook and Challenges:
* Ford expects "roughly breakeven" adjusted EBIT in Q1 2025 due to lower sales and product mix issues.
* The company anticipates $1 billion in cost savings.
* Ford Model e segment faces "top-line pressure" from rising supply and uneven demand.
* Ford's CEO called for a "comprehensive" tariff policy on vehicle imports.
Executive Commentary:
"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," said CEO Jim Farley.
"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."
"What doesn’t make sense to me is why we’re having this conversation while Hyundai-Kia is importing 600,000 units into the U.S. with no incremental tariff, and why is Toyota able to import a half a million vehicles into the U.S. with no incremental tariffs?," Farley added, advocating for a more equitable tariff policy.