Ford Reports Mixed Q4 Results, Issues Cautious Outlook

Key Financial Highlights

* Q4 Revenue: $48.2 billion (beat estimate of $43.01 billion)
* Adjusted EPS: $0.39 (beat estimate of $0.32)
* Adjusted EBIT: $2.1 billion
* Annual Adjusted EBIT Guidance (2025): $7.0-$8.5 billion
* Annual Adjusted Free Cash Flow Guidance (2025): $3.5-$4.5 billion

Business Segments

* Ford Blue (gasoline vehicles):
* Revenue: $27.3 billion
* EBIT: $1.581 billion
* Ford Model e (electric vehicles):
* Revenue: $1.4 billion
* EBIT: -$1.389 billion (full-year loss of $5.1 billion)
* Ford Pro (commercial vehicles):
* Revenue: $16.2 billion
* EBIT: $1.629 billion

Guidance and Outlook

* Ford's guidance for 2025 includes "headwinds related to market factors," such as pricing.
* CFO Sherry House indicated that a potential 25% tariff on imports could significantly impact the industry.
* CEO Jim Farley emphasized the company's focus on improving quality and cost as part of its Ford+ transformation.

Q1 2025 Expectations

* Adjusted EBIT expected to "roughly breakeven" due to lower sales and unfavorable product mix.

Industry Comparison

* GM reported strong Q4 results and projected an EV business EBIT loss of $4.25 billion in 2025.

Tariff Concerns

* Farley expressed concern about tariffs on Canadian and Mexican imports, which he believes will have a "devastating impact" long term.
* He called for a more comprehensive tariff policy that applies to all automakers.