Ford (NYSE: F) released its fourth-quarter earnings report after the market closed on Wednesday, beating top and bottom line forecasts. Although its Model e electric vehicle business lost another $5.1 billion last year, CEO Jim Farley promises, “Ford is becoming a fundamentally stronger company.” Here’s a breakdown of Ford’s Q4 2024 earnings.
Ford Q4 2024 earnings preview
Although it sold a record over 97,000 electric vehicles last year, Ford was topped by cross-town rival GM as the number two seller of EVs in the US.
After GM beat Wall St expectations last week with upbeat guidance for 2025, Ford looks to match it. Like GM, Ford will likely face more headwinds this year with Trump expected to end federal EV incentives. He is also threatening to impose tariffs on US trade partners, including Mexico, where the Mustang Mach-E is built.
Although GM doesn’t report separate breakdown for electric vehicles, it said they achieved a “positive variable profit” in Q4 2024.
After losing another $1.2 billion in the third quarter, Ford’s Model e business racked up 3.7 billion in losses through the first nine months of 2024. Ford expects EV losses to reach around $5 billion for the year.
In Q4 2024, Ford is expected to report total company revenue of around $43 billion, down from $44 billion a year ago and $46.2 billion in the third quarter. The company is forecasted to post an adjusted EPS of around $0.33.
Investors will be closely watching Ford’s path to EV profitability and the potential impact of tariffs. Last month, Ford’s US sales fell 6%, while EV sales were up 21%.
Financial breakdown
Ford beat Q4 expectations, posting $48.2 billion in revenue, up $2.2 billion year-over-year (YOY). Ford generated $185 billion in revenue for the entire year, its highest ever.
- Q4 2024 Revenue: $48.2 billion vs $43 billion expected.
- Q4 2024 Adjusted EPS: $0.39 vs $0.33 expected.
The company reported an adjusted EBIT of $2.1 billion in the quarter, up 103% from Q4 2023. Ford’s Blue and Pro units generated $1.6 billion, while its Model e unit lost another $1.4 billion.
Ford reported an adjusted EBIT of $9 billion for its Pro business for the full year and $5.3 billion for Ford Blue. Its Model e EV business lost $5.1 billion last year. In the fourth quarter, Ford lost about $37,000 on every electric vehicle it sold.
Ford said the higher EV losses were due to pricing pressure, with volume and revenue falling 9% and 35%, respectively. Ford’s aging F-150 Lightning and Mustang Mach-E are facing an influx of new rivals in the US, such as the Tesla Cybertruck and Chevy Equinox EV.
Farley explained that “In 2025, we expect to make significantly more progress on our two biggest areas of opportunity – quality and cost” as it looks to improve profitability.
| Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Full-Year 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Full-Year 2024 | 2025 Forecast | |
| Ford Model e EBIT loss | ($722 million) | ($1.08 billion) | ($1.33 billion) | ($1.57 billion) | ($4.70 billion) | ($1.32 billion) | ($1.14 billion | ($1.22 billion) | ($1.39 billion) | ($5.07 billion) | ($5 billion to $5.5 billion) |
Ford expects adjusted EBIT of $7 billion to $8.5 billion in 2025. It’s also forecasting that Model e will lose another $5 to $5.5 billion this year.
Its guidance is slightly lower than expected, given the potential impact of Trump’s imposing tariffs on Canada, Europe, and Mexico.
On the earnings call with investors, Farley said a 25% tariff on imports from Mexico and Canada would have massive impacts, creating billions in losses, but it will continue working with government leaders on a solution.
Ford’s stock fell over 5% on Wednesday’s post-market trading following the report and the potential impact of tariffs.
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