Ford turned around its fourth-quarter earnings, moving from a loss to $1.8 billion in net income, pushing the company to a new benchmark for full-year revenue of $185 billion. The automaker also forecast lower earnings for 2025.
Ford CEO Jim Farley said the company was stronger, but still needed to improve in other areas in 2025.
The automaker reported Q4 revenue of $48.2 billion, an increase of 2.3%. However, the big change for the quarter was the shift from a $526 million loss in 2023 to net income of $1.8 billion. Ford reported adjusted earnings of $2.1 billion for the final quarter of 2024.
For the full year, the company’s new revenue record represented net income of $5.9 billion and adjusted earnings of $10.2 billion. The company’s operating cash flow was $15.4 billion, and adjusted free cash flow was $6.7 billion.
CEO Jim Farley acknowledged the progress the company made in 2024, saying the company was “fundamentally stronger.” However, he also noted the automaker faced challenges in 2025.
“In 2025, we expect to make significantly more progress on our two biggest areas of opportunity — quality and cost — as we enter the heart of our Ford+ transformation,” he said in a statement. “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.”
Not all good news
Farley noted the company expects to make “progress” on the quality issues it continues to see.
Company executives also looked to temper expectations for 2025, forecasting lower results than the year just ended. Ford predicted full-year adjust EBIT in the range of $7 billion to $8.5 billion compared to the $10.2 billion reported in 2024.
Officials also expect to generate $3.5 billion to $4.5 billion in adjusted free cash flow, which would be down from $6.7 billion last year. The company’s capital expenditures will come in between $8 billion and $9 billion.
The company said the first quarter’s adjusted EBIT to be “roughly breakeven due to lower wholesales and unfavorable mix, including launch activity at major U.S. assembly plants, including Kentucky Truck and Michigan Assembly plants.
The company’s stock was down in premarket trading, and opened the day down a little more than 4% in the mid-$9 range.
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Tough year ahead
The company’s down forecast cited “headwinds” coming later in 2025; however, Farley addressed the potential headwind looming on the horizon: tariffs.
Ford will face big problems if the Trump administration elects to enact “prolonged” tariffs against Canada and Mexico.
“There’s no question that tariffs at 25% level from Canada, Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and adverse effect on the U.S. jobs as well as the entire value system in our industry. Tariffs would also mean higher prices for customers,” Farley said during the company’s Wednesday earnings call.
He noted the a short term tariff — designed to make a point — would be “manageable,” but anything beyond that will cause real problems for Ford and the industry. He expressed optimism that the company’s talks with the Trump administration and others have provided a clear picture.
“We believe based on our conversations in D.C. with the Trump administration and congressional leaders that they are committed to strengthening, not weakening our nation’s auto industry,” Farley noted.
“That is certainly our expectation. And we look forward to working with our leaders to make sure that that becomes a reality. Because they understand and appreciate how vital our industry is to jobs, the economy, our national security and the communities across our country.”
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