Ford Motor Company (NYSE:F) reported fourth-quarter earnings that surpassed Wall Street expectations on Tuesday, but its electric vehicle (EV) division posted a steep loss and the automaker warned of increasing challenges ahead.
The company posted earnings per share of $0.39, exceeding analysts’ estimates of $0.32, while revenue came in at $48.2 billion, ahead of the $42.8 billion forecast.
Despite the beat, investors focused on Ford’s deepening losses in its EV business and a cautious outlook for 2025.
Ford’s EV unit reported an operating loss of $1.38 billion in the fourth quarter, with revenue for the segment falling 35% year-over-year. For the full year 2024, Ford’s EV division recorded a total loss of $5.1 billion.
The automaker now expects EV business losses to widen to $5.5 billion in 2025, citing weaker-than-expected demand for its F-150 Lightning electric pickup, which has struggled to compete with Tesla’s Cybertruck.
“Ford is becoming a fundamentally stronger company,” CEO Jim Farley said in a statement. “We finished 2024 with a solid fourth quarter, capping the highest revenue year in Ford’s history.”
Farley pointed to Ford’s diversified powertrain lineup and the strength of its Ford Pro division, which provides commercial vehicles and services, as key drivers of growth. The company said Ford Pro maintains “mid-teen” profit margins.
Looking ahead, Farley said Ford plans to focus on improving quality and reducing costs in 2025 as part of its Ford+ transformation strategy. “We control those key profit drivers, and I am confident that we are on the right path to create long-term value for all our stakeholders,” he added.
Shares of Ford fell 4.8% in after-hours trading.