Ford Motor exceeded Wall Street expectations for the fourth quarter, reporting strong revenue and earnings. However, the company warned of a challenging year ahead as CEO Jim Farley focuses on improving vehicle quality and cost efficiency. Following the earnings announcement, Ford’s stock declined by 5% in after-hours trading.
For 2024, Ford reported adjusted earnings before interest and taxes (EBIT) of $10.2 billion, or $1.84 per share, with net income of $5.9 billion ($1.46 per share). The company achieved record revenue of $185 billion, with adjusted free cash flow reaching $6.7 billion. Looking ahead, Ford projects 2025 adjusted EBIT of $7 billion to $8.5 billion, free cash flow of $3.5 billion to $4.5 billion, and capital expenditures between $8 billion and $9 billion.
In the fourth quarter of 2024, Ford reported net income of $1.8 billion, or 45 cents per share, compared to a net loss of $526 million (13 cents per share) a year earlier. Adjusted earnings per share came in at 39 cents, surpassing analysts’ expectations of 33 cents. Automotive revenue also beat estimates, reaching $44.9 billion against a forecast of $43.02 billion.
The company acknowledged several headwinds in 2025, including lower industry pricing and slightly reduced wholesale volumes. While tariff concerns remain a factor, Ford CFO Sherry House stated that no immediate actions would be taken regarding potential trade policy changes. The company is also targeting $1 billion in material and warranty cost reductions, following $1.4 billion in cuts in 2024, which were offset by unexpected quality and recall expenses.
Ford anticipates a weaker first half of 2025, with Q1 EBIT expected to be roughly breakeven due to lower wholesales and less profitable vehicle production. Major U.S. assembly plants in Kentucky and Michigan will undergo launch activities, impacting output.
Breaking down its 2024 performance, Ford’s Blue (internal combustion) and Pro (fleet) segments remained profitable, while Model e (electric vehicle division) posted a $5.08 billion loss, including $1.39 billion in Q4 alone. The Blue division earned $5.28 billion, down $2.2 billion year-over-year, while Pro generated over $9 billion, including $1.63 billion in Q4.
For 2025, Ford expects Pro to generate $7.5 billion to $8 billion in EBIT, Blue to earn $3.5 billion to $4 billion, and Model e to report a $5 billion to $5.5 billion loss. Its financial services arm, Ford Credit, is projected to contribute $2 billion in earnings.
The company remains under pressure after General Motors outperformed expectations and delivered strong guidance. Ford struggled in 2024 due to warranty and recall issues, leading to a 20% stock decline. Farley has pledged to improve reliability and cost management, aiming to restore investor confidence in 2025.
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