On February 5, Ford released its Q4 earnings report exceeding Wall Street analysts’ estimates but forecasts a harder year followed by a share drop of 5% in extended trading. The automaker announced a company-record total revenue of $185 billion, with adjusted free cash flow reaching $6.7 billion. CEO Jim Farley said, “We think it’s prudent. There are many external factors … but our future is really in our hands,” referring to the Ford Q4 earnings.
For 2024, Ford reported adjusted EBIT of $10.2 billion, or $1.84 per share in adjusted earnings and net income of $5.9 billion, or $1.46 per share in earnings.
Ford Q4 Earnings Report
As per Ford’s Q4 earnings report, it posted a net income of $1.8 billion, or 45 cents per share, compared to a net loss of $526 million, or 13 cents per share, from the previous year. After adjusting for one-time items, earnings per share were 39 cents. Ford’s profitability was majorly dependent on its traditional “Blue” operations and “Pro” fleet business as “Model E,” the electric vehicle business lost $5 billion in 2024.
The EV business also lost $1.94 billion during the fourth quarter. The Blue business includes internal combustion engine vehicles, earning $5.28 billion in 2024, a nearly $2.2 billion decrease from the year before. Pro made over $9 billion last year, with $1.63 billion earned in the fourth quarter.
Ford 2025 Outlook
For 2025, Ford expects EBIT of $7.5 billion to $8 billion from Ford Pro, $3.5 billion to $4 billion from Ford Blue, and a loss of $5 billion to $5.5 billion from Ford Model E. Ford Credit is forecasted to earn $2 billion. Ford faced pressure to perform after rival General Motors easily surpassed Wall Street’s fourth-quarter expectations and said its 2025 forecast aligns with or exceeds analysts’ predictions.
Last year, Ford underperformed the expectations of analysts majorly because of unexpected warranty and recall issues hindering the company’s earnings. In 2024, shares of the automaker have declined by 20% amid the problems. Farley has assured to rectify the issues in 2025 and make improvements in vehicle quality and costs.
Ford Stock Update
Ford’s stock took a hit last week after the company released its fourth-quarter earnings, which had mixed results. Although they beat earnings-per-share expectations, their revenue missed the mark. Ford also gave a weaker-than-expected forecast for the year, citing “market challenges.” This news caused the stock to drop over 4% in after-hours trading, reflecting investor worries about the company’s future profits and ability to handle tough market conditions.
