Ford Motor Company (F) earnings for the fourth quarter of 2025

Detroit – ford motor It reported its biggest quarterly profit loss in four years in fourth-quarter results released Tuesday, as it sets 2026 to be a rebound year for the automaker.

Ford’s 2026 guidance includes adjusted earnings before interest and taxes of between $8 billion and $10 billion, up from $6.8 billion last year; Adjusted free cash flow of $5 billion to $6 billion, up from $3.5 billion in 2025; Capital expenditures rose from $9.5 billion to $10.5 billion, up from $8.8 billion.

Here’s how the company performed in the fourth quarter compared to average estimates compiled by LSEG:

• EPS: 13 cents were revised versus 19 cents expected
• Car revenue: $42.4 billion versus $41.83 billion expected

The lower-than-expected 32% EPS was the company’s first quarterly loss since 2024 and the worst since the 42% gap when fourth-quarter 2021 results were announced, according to LSEG.

The company said the profit loss was largely due to unexpected tariff costs of about $900 million related to auto parts credits that did not take effect as early as expected. As of December 15, Ford confirmed earnings before interest and taxes of $7.7 billion for the fourth quarter, but additional costs reduced that to $6.8 billion.

Ford CFO Sherry House said the lower-than-expected earnings were also related to additional impacts from fires at last year’s Novelis aluminum supplier plant in New York, which is now not expected to be fully operational until the middle of this year. The plant supplies Ford’s profitable F-Series pickup trucks.

“We will see a roughly $1 billion benefit in 2026; however, this year, because of the Novelis effect, we will increase tariffs in order to secure aluminum that equates to roughly the same amount of those savings,” House told reporters.

She said the net impact of the Ford tariffs is expected to remain roughly flat year-over-year at $2 billion in 2026. She added that the Novelis fire had a $2 billion impact during the second half of the year on Ford.

Jim Farley, CEO of House and Ford, said the company’s 2025 results continue to show improvement in the company’s underlying business despite special items impacting the results.

The company’s 2025 revenue reached a record $187.3 billion, up 1% from $185 billion the previous year. This includes $45.9 billion during the fourth quarter, down 5% from the previous year.

At the business unit level, the automaker’s traditional and fleet operations are expected to offset expected losses of $4 billion to $4.5 billion this year for its Model E electric vehicle unit. Pre-tax earnings from Ford’s “pro” fleet business are expected to range between $6.5 billion to $7.5 billion, followed by $4 billion to $4.5 billion for its traditional “blue” business.

On an unadjusted basis, the company’s net loss of $8.2 billion last year was the largest since the Great Recession of 2008, according to FactSet. This included $15.5 billion in special charges during the fourth quarter that were largely related to the previously announced rollback of all-electric vehicle plans.

Automakers typically exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their underlying, ongoing business operations.

Ford reported a net loss of $11.1 billion in the fourth quarter, or a loss of $2.77 per share, compared with net income of $1.8 billion, or 45 cents per share, in the same period in 2024. After adjusting for one-time charges, the company reported earnings of 13 cents per share.