Ford Earnings Race Past Views But Weak Outlook Sinks Shares

Ford Motor Company (NYSE: F) reported its fourth-quarter and full-year 2024 financial results on Wednesday, February 5, 2025. The automaker's earnings topped Wall Street's estimates, but its weak outlook for 2025 sent shares tumbling in after-hours trading. Here's a closer look at the key metrics and what investors can expect from Ford in the coming year.

Ford's fourth-quarter revenue increased to $48.2 billion, up from $46.0 billion in the same period last year. Net income for the quarter was $1.8 billion, compared to a loss of $0.5 billion in the fourth quarter of 2023. Adjusted earnings before interest and taxes (EBIT) came in at $2.1 billion, up from $1.1 billion in the same period last year.

For the full year, Ford's revenue climbed 5% to $185 billion, while net income was $5.9 billion, up from $4.3 billion in 2023. Adjusted EBIT was $10.2 billion, up from $10.4 billion in the previous year.

Ford's board of directors declared a first-quarter regular dividend of $0.15 per share, plus a supplemental dividend of $0.15 per share, payable on March 3 to shareholders of record on February 18.

Ford's outlook for 2025 was less rosy, however. The company expects full-year adjusted EBIT to range between $7.0 billion and $8.5 billion, down from $10.2 billion in 2024. Ford also anticipates generating $3.5 billion to $4.5 billion in adjusted free cash flow, with capital expenditures of $8.0 billion to $9.0 billion.

Ford's electric vehicle (EV) business, Model e, reported a full-year EBIT loss of $5.1 billion in 2024, and the company expects the segment to lose between $5 billion and $5.5 billion in 2025. Ford cited increased competition, pricing pressure, and continued investment in future products as factors contributing to the EV segment's losses.

Ford's commercial vehicle unit, Ford Pro, is expected to generate full-year pretax profit between $7.5 billion and $8 billion, down from $9.02 billion in 2024. The company's gas and hybrid vehicle unit, Ford Blue, is forecast to post pretax earnings between $3.5 billion and $4 billion, down from $5.28 billion in 2024.

Ford's shares fell 5.1% in after-hours trading on Wednesday, February 5, following the company's earnings report and outlook for 2025. The stock closed 1.5% lower during regular trading.

Ford's strong fourth-quarter and full-year 2024 results were overshadowed by the company's weak outlook for 2025. Investors should keep an eye on Ford's progress in its EV segment, as well as its ability to adapt to potential tariffs on Canada and Mexico. By diversifying its supply chain, negotiating with suppliers, and absorbing or passing on costs to consumers, Ford can work to minimize the negative effects of tariffs on its operations and profitability.



In conclusion, Ford's earnings race past views, but its weak outlook for 2025 has investors concerned. As the company works to improve its EV segment's profitability and adapt to potential tariffs, investors should monitor Ford's progress closely. By staying informed and making strategic decisions, investors can position themselves to capitalize on opportunities in the automotive industry.