Ford Reports Mixed Q4 Earnings, Issues Cautious Guidance
Ford Motor Company (F) reported strong fourth-quarter earnings and revenue, surpassing analyst estimates. However, the company issued conservative guidance for 2025, citing market headwinds.
Key Metrics
* Revenue: $48.2 billion (vs. $43.01 billion estimated)
* Adjusted EPS: $0.39 (vs. $0.32 expected)
Business Performance
Ford's Ford Blue segment generated $27.3 billion in revenue and $1.581 billion in EBIT. The Model e electric vehicle division posted a loss of $1.389 billion on revenue of $1.4 billion. Ford Pro, the commercial and heavy-duty truck business, reported revenue of $16.2 billion and EBIT of $1.629 billion.
Guidance
For 2025, Ford expects adjusted EBIT of $7.0 billion to $8.5 billion, down from $10.2 billion in 2024. Adjusted free cash flow is projected to range from $3.5 billion to $4.5 billion. The company anticipates challenges due to market factors, excluding potential changes in EV tax credits or tariffs.
Executive Commentary
CFO Sherry House stated that a 25% tariff on imports would "have a major impact" on the industry. CEO Jim Farley emphasized Ford's focus on quality and cost improvements through the Ford+ transformation.
Electrification
The Model e segment posted a full-year EBIT loss of $5.1 billion. Ford expects losses to continue in 2025 but anticipates higher EV volume. Vice Chair John Lawler cited top-line pressure due to uneven demand.
Sales and Marketing
US sales in Q4 rose 8.8% year-over-year, driven by increased F-Series truck sales. The electrified segment saw a 38% jump, with hybrid sales accounting for the majority.
Tariffs
Farley expressed concerns over tariffs on Canadian and Mexican imports, arguing for a comprehensive policy. He noted the absence of tariffs for Hyundai-Kia and Toyota imports.
Additional Notes
* Q1 2025 adjusted EBIT is expected to break even.
* Ford expects to realize $1 billion in cost savings.
* Ford shares dropped 4% in pre-market trading after the earnings release.