Yahoo Finance / news@whmi.com

Ford Motor Company reported fourth quarter results Tuesday after the bell that missed expectations, with charges stemming from its EV business resulting in a net loss for the quarter and the year.

Ford reported Q4 automotive revenue of $42.40 billion vs. $42.40 billion expected, per Bloomberg consensus, with adjusted earnings per share (EPS) of $0.13 vs. $0.19 expected, on adjusted EBIT of $1 billion vs. $1.16 billion.

But Ford posted a fourth quarter and full-year net loss of $11.1 billion and $8.2 billion, respectively, which reflected the impact of special items, the company said. Ford's full-year adjusted EBIT of $6.8 billion came in near its forecast of around $7 billion but missed estimates of $8.86 billion. Adjusted free cash flow came in at $3.5 billion for the year, at the midpoint of Ford's projection.

Ford said it would have had full-year EBIT in the mid $7 billion range if not for a change the White House communicated to Ford regarding tariff-offsets in December, which ended up adding $900 million more in tariff costs.

Last December, Ford reported a $19.5 billion charge due to a pivot in its EV business. The majority of the special items would be recognized in the fourth quarter ($12.5 billion), with the balance ($7 billion) hitting in 2026 and 2027.

Ford's Model EV unit reported a $4.8 billion EBIT loss for the year, though it was an improvement over 2024 by 299 basis points. Ford CFO Sherry House said in a call with reporters that the pathway to EV profitability likely won't happen until 2029, when the company has its EV products from Renault on sale in Europe, and its Universal EV platform vehicles are on sale in the market.

"Ford delivered a strong 2025 in a dynamic and often volatile environment," Ford CEO Jim Farley said in a statement. "We improved our core business and execution, made significant progress in the areas of the business we control — lowering material and warranty costs and making real progress on quality — and made difficult but critical strategic decisions that set us up for a stronger future."

House added that Ford was hit by $2 billion in net tariff costs for the year, as well as a $2 billion in added costs due to the Novelis aluminum plant fire that affected F-Series truck production.

Looking ahead to 2026 guidance, Ford projected adjusted EBIT of $8 billion to $10 billion, adjusted free cash flow of $5 billion to $6 billion, and capital expenditures of $9.5 billion to $10.5 billion. Ford said it expects its Model e unit to post another loss of $4 billion to $4.5 billion.