Ford Reports Q4 Earnings Beat, Issues Muted Guidance
Revenue and Earnings:
* Q4 Revenue: $48.2 billion (est. $43.01 billion)
* Q4 Adjusted EPS: $0.39 (est. $0.32)
* Full-Year 2024 Adjusted EBIT: $10.2 billion (est. $10 billion)
* Full-Year 2024 Net Income: $5.9 billion
Forward-Looking Guidance:
* Full-Year 2025 Adjusted EBIT: $7.0 billion to $8.5 billion
* Full-Year 2025 Adjusted Free Cash Flow: $3.5 billion to $4.5 billion
Segment Performance:
* Ford Blue (gas-powered): $27.3 billion revenue, $1.581 billion EBIT
* Ford Model e (EV): $1.4 billion revenue, -$1.389 billion EBIT
* Ford Pro (commercial): $16.2 billion revenue, $1.629 billion EBIT
EV Segment:
* Full-Year 2024 Model e EBIT Loss: $5.1 billion
* Anticipated 2025 Model e EBIT Loss: Similar to 2024
* Wolfe Research Estimates: GM's EV EBIT Loss in 2025: $4.25 billion
Tariffs and Outlook:
* CFO Sherry House: "A 25% tariff on imports would have a major impact on our industry."
* CEO Jim Farley: "We're well-positioned in a post-tariff world... but we do build a number of vehicles in Mexico."
* Farley anticipates "top-line pressure" on Model e segment due to supply and demand challenges.
Additional Highlights:
* Q1 2025 Adjusted EBIT expected to be "roughly breakeven."
* Ford plans to achieve $1 billion in cost savings.
* Farley remains optimistic about Ford's EV efforts, citing growth in both hybrids and pure EVs.
* Ford continues to focus on developing smaller and midsize EVs.
* Ford's US sales rose 8.8% in Q4 2024, driven by strong F-Series sales.
* The electrified segment saw a 38% increase in sales, with hybrid sales accounting for the majority.