Ford Posts Mixed Q4 Results, Provides Muted Outlook
Key Highlights:
* Fourth-quarter earnings and revenue beat estimates
* Adjusted EBIT and free cash flow guidance below expectations
* Guidance considers market headwinds and potential loss of EV tax credits
* Model e segment remains loss-making, with losses expected to continue in 2025
* Ford emphasizes progress in quality and cost improvements as part of Ford+ transformation
Financial Performance:
* Q4 revenue: $48.2 billion (vs. $43.01 billion estimated)
* Q4 adjusted EPS: $0.39 (vs. $0.32 expected)
* Q4 adjusted EBIT: $2.1 billion
* Full-year 2024 adjusted EBIT: $10.2 billion
* Full-year 2024 net income: $5.9 billion
Outlook:
* 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
* Q1 2025 adjusted EBIT expected to be breakeven
Business Units:
* 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
EV Business:
* Model e segment posted a full-year EBIT loss of $5.1 billion
* Losses in Model e expected to stay unchanged in 2025
* Ford CEO Farley emphasizes hybrids' role in boosting electrification efforts
* Development of smaller and midsize EVs prioritized
Tariffs and Manufacturing:
* Ford CFO House warns that 25% tariff on imports could impact the industry
* Farley highlights Ford's US manufacturing footprint as an advantage
* Mustang Mach-e and other vehicles built in Mexico may face challenges
Other Highlights:
* US sales in Q4 increased 8.8% year-over-year
* Electrified vehicle sales jumped 38% in 2024, with hybrids accounting for the majority
* Maverick hybrid pickup sales contributed significantly to hybrid growth