Ford reported a loss of $8.2 billion FY2025 due to the $19.5 billion special charge in the fourth quarter related to its EV business. The fourth quarter loss was even bigger: $11.1 billion. However, the company’s 2026 guidance provided some optimism.
Ford CEO Jim Farley lauded part of the company performed well in 2025, despite the $8.2 billion loss.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” said Jim Farley, Ford president and CEO, in a release.
Revenue for the year was $187.3 billion, a 1% increase over the $185 billion from 2024. Backing out the special charge and other items, Ford reported a $6.8 profit for the full year, and $1 billion for Q4, officials noted. The company’s revenue was down 5% in the final quarter of the year, from $48.2 billion to $45.9 billion.
The sun’ll come out …
The gloomy numbers didn’t stop Farley from pointing out the bright spots in the company’s business execution, even though it lost money in its Ford Blue and Ford Pro segments — areas that were previously profitable.
Although the special charge was related to Ford’s EV business, Ford Model-e turned a profit in 2025.
“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.
“Moving forward, we’ll continue building on our strong foundation to achieve our target of 8% adjusted EBIT margin by 2029.”
However, the company glass is half full for 2026, despite many believing it could be a tough year for the industry as a whole.
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Looking ahead
The Ford Explorer family gets a new member for 2026, the Tremor.
For 2026, officials said the company expects adjusted earnings between $8 billion and $10 billion with adjusted free cash flow ranging from $5 billion to $6 billion. The company didn’t offer non-adjusted numbers.
Ford will spend between $9.5 billion and $10.5 billion on capital expenditures this year, including dedicating $1.5 billion to ramp up its Ford Energy unit.
“Improvements in our industrial system, a robust product roadmap that leverages our core strengths, and a disciplined approach to capital efficiency will drive even stronger results in 2026 and beyond,” said CFO Sherry House in a statement.
“We remain relentlessly focused on three key levers to improve margins: improvements in EVs, highly accretive anti-cyclical businesses that grow and change our risk profile and next generation core products.”
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