Ford reports worst quarterly earnings miss in four years, guides for better 2026

DETROIT – Ford Motor reported its largest quarterly earnings miss in four years in its fourth-quarter outcomes launched Tuesday, whereas guiding for 2026 to be a rebound 12 months for the automaker.

Ford’s 2026 steerage consists of adjusted EBIT of between $8 billion and $10 billion, up from $6.8 billion final 12 months; adjusted free money move of between $5 billion and $6 billion, up from $3.5 billion in 2025; and capital expenditures of $9.5 billion to $10.5 billion, up from $8.8 billion.

Here is how the corporate carried out in the fourth quarter in contrast with common estimates compiled by LSEG:

• Earnings per share: 13 cents adjusted vs. 19 cents anticipated
• Automotive income: $42.4 billion vs. $41.83 billion anticipated

The EPS coming in 32% under consensus was the corporate’s first quarterly miss since 2024 and its worst since a 42% distinction when reporting its 2021 fourth-quarter outcomes, based on LSEG.

The earnings miss was largely because of sudden tariff prices of roughly $900 million associated to credit for auto components not taking impact as early as anticipated, the corporate stated. Ford, as of Dec. 15, had confirmed $7.7 billion in earnings earlier than curiosity and taxes for the fourth quarter, however the further prices dropped that to $6.8 billion.

Ford CFO Sherry Home stated the lower-than-expected earnings had been additionally associated to further impacts from fires at a Novelis aluminum provider plant final 12 months in New York, which now is not anticipated to be totally operational till the center of this 12 months. The plant provides Ford’s profitable F-Collection pickup vehicles.

“We are going to see a billion-dollar profit roughly in 2026; nonetheless, this 12 months, as a result of Novelis impression, we’ll have tariffs rising in order to safe aluminum that’s roughly the identical quantity of that financial savings,” Home advised reporters.

Ford’s web tariff impression is anticipated to be roughly flat year-over-year at $2 billion in 2026, she stated. The Novelis fireplace had an impression of $2 billion through the second half of the 12 months for Ford, she added.

Home and Ford CEO Jim Farley stated the corporate’s 2025 outcomes proceed to exhibit the corporate’s underlying enterprise is enhancing regardless of the particular gadgets impacting outcomes.

The corporate’s 2025 income was a file $187.3 billion, up 1% from $185 billion a 12 months earlier. That features $45.9 billion through the fourth quarter, down 5% from a 12 months earlier than.

On a per-unit stage, the automaker’s conventional and fleet operations are anticipated to offset an anticipated $4 billion to $4.5 billion in losses this 12 months for its “Mannequin e” electrical automobile unit. Pre-tax earnings from its “Ford Professional” fleet enterprise are anticipated to be between $6.5 billion to $7.5 billion, adopted by $4 billion to $4.5 billion for its conventional “Blue” enterprise.

On an unadjusted foundation, the corporate’s web lack of $8.2 billion final 12 months was its largest for the reason that Nice Recession in 2008, based on FactSet. That included $15.5 billion in particular fees through the fourth quarter largely associated to a pre-announced pullback in its all-electric automobile plans.

Automakers generally exclude “particular gadgets” or one-time fees from their adjusted monetary outcomes to supply traders with a clearer image of their core, ongoing enterprise operations.

Ford reported a fourth-quarter web lack of $11.1 billion, or a lack of $2.77 per share, in contrast with web earnings of $1.8 billion, or 45 cents per share, in the identical interval in 2024. Adjusted for the one-time fees, the corporate reported earnings of 13 cents per share.