Ford Motor Company (NYSE:F) on Tuesday reported a fourth-quarter earnings miss, weighed down by unexpected tariff costs and ongoing challenges in its electric vehicle (EV) business, while forecasting a rebound in profits for 2026.
The Detroit-based automaker’s EV unit, Model e, posted a $1.2 billion loss in the fourth quarter, translating to a negative EBIT margin of 94.6%. Revenue from EVs fell 7% year-on-year to $1.3 billion, impacted by the expiration of federal EV tax credits, a production halt for the F-150 Lightning, and other operational challenges.
For the full year, the EV division reported an EBIT loss of $4.8 billion, an improvement of $300 million from 2024, with revenue rising to $6.7 billion from $3.9 billion.
Overall, Ford reported fourth-quarter adjusted earnings per share of $0.13, below analysts’ expectations of $0.19, while automotive revenue came in at $42.4 billion, slightly above the $41.83 billion forecast. Full-year revenue reached a record $187.3 billion, up 1% from $185 billion in 2024, marking the company’s fifth consecutive year of annual revenue growth.
Shares of Ford were up about 1.6% in after-hours trading following the release of the results.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” CEO Jim Farley said. “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.”
Ford reported a fourth-quarter net loss of $11.1 billion and a full-year net loss of $8.2 billion, reflecting the impact of special items, while adjusted EBIT for the quarter and year was $1 billion and $6.8 billion, respectively.
Looking ahead, Ford expects full-year 2026 adjusted EBIT of $8 billion to $10 billion and adjusted free cash flow of $5 billion to $6 billion, with capital expenditures projected at $9.5 billion to $10.5 billion.