Ford Reports Q4 Beat, but Muted Outlook Weighs
Key Points:
* Ford (F) surpasses Q4 earnings and revenue estimates.
* Full-year profit exceeds expectations slightly.
* Outlook for 2025 cautious, citing market headwinds.
* EV segment posts significant loss but anticipates improved performance.
* Company plans $1 billion in cost savings.
Financial Results:
* Q4 revenue: $48.2 billion (vs. estimate $43.01 billion)
* Q4 adjusted EPS: $0.39 (vs. estimate $0.32)
* Full-year 2024 adjusted EBIT: $10.2 billion
* 2025 full-year guidance:
* Adjusted EBIT: $7.0 billion to $8.5 billion
* Adjusted free cash flow: $3.5 billion to $4.5 billion
Market Factors and Outlook:
* Ford cites pricing pressures and potential policy changes as headwinds.
* CFO warns of "major impact" if 25% tariff on imports is imposed.
* Anticipates "roughly breakeven" adjusted EBIT in Q1 2025 due to lower sales.
Ford+ Segmentation:
* Ford Blue (gas-powered): $27.3 billion revenue, $1.581 billion EBIT
* Model e (electric vehicles): $1.4 billion revenue, -$1.389 billion EBIT
* Ford Pro (commercial and heavy-duty trucks): $16.2 billion revenue, $1.629 billion EBIT
EV Business:
* Model e segment reports full-year EBIT loss of $5.1 billion.
* Expects losses to continue in 2025 despite higher EV volume.
* Anticipates "top-line pressure" due to supply chain challenges and uneven demand.
Other Highlights:
* Ford expects $1 billion in cost savings.
* US sales increased 8.8% in Q4, driven by F-Series pickup sales.
* "Electrified" vehicle sales jumped 38% in 2024.
* CEO Jim Farley emphasizes progress in quality and cost improvements under Ford+ transformation.