Ford Motor (NYSE:F) executives told investors the company delivered higher revenue, improved costs, and stronger U.S. market share in 2025 while navigating tariff headwinds and supply disruptions tied to a pair of fires at a key aluminum supplier. On the automaker’s fourth-quarter 2025 earnings call, management also laid out a 2026 outlook that calls for higher earnings and cash flow, driven by improved mix, continued cost reductions, lower net tariff costs, and reduced losses in its electric-vehicle business.
2025 results and key headwinds
CEO Jim Farley said Ford generated $187 billion of revenue in 2025 and posted $6.8 billion of adjusted EBIT for the full year. Farley highlighted U.S. market share of 13.2%, which he described as the company’s best performance in six years, and said total shareholder return was 42%.
Farley said that without the one-time tariff credit timing issue, Ford’s 2025 EBIT would have been $7.7 billion. He also emphasized progress in lowering material and warranty costs and improving quality, including recalling older vehicles to support customers.
Business mix: Ford Pro, Ford Blue, and Model e
CFO Sherry House said Ford’s 2025 performance reflected “capital discipline and improved cost performance.” She noted revenue growth for a fifth consecutive year, a 16% reduction in U.S. gross inventory, and year-end inventory of 56 retail days supply. Ford reported $3.5 billion of adjusted free cash flow and ended the year with nearly $29 billion in cash and nearly $50 billion in liquidity. House also reiterated Ford’s commitment to an investment-grade rating and referenced the declaration of a $0.15 per share regular dividend for the first quarter.
- Ford Pro: House said Ford Pro delivered more than $66 billion of revenue and $6.8 billion of EBIT with a double-digit margin. Transit sales in the U.S. rose 6% to a record, and Super Duty sales rose 10% to the best level in more than 20 years. Paid software subscriptions in Pro grew 30%, and software and physical services contributed 19% of Pro’s EBIT, nearing a stated 20% target. Farley said U.S. Pro share in Class 1 through 7 exceeded 42% and that Ford has been Europe’s number one commercial brand for 11 straight years.
- Ford Blue: House said Ford Blue revenue was roughly flat, with higher net pricing and product strength offsetting most of a 5% decline in wholesales that included Novelis-related disruption. Blue posted $3.0 billion of EBIT, as lower warranty and other cost improvements were offset by production losses and adverse exchange. Farley and executives highlighted pickup strength, with Ford winning North America Truck of the Year for the sixth consecutive year and gaining nearly two points of revenue share in U.S. pickups in 2025. They also said off-road performance trims accounted for more than 20% of U.S. sales mix.
- Ford Model e: House said Model e revenue and volume grew 73% and 69%, respectively, driven by new product introductions in Europe. Full-year EBIT losses improved to a $4.8 billion loss, reflecting reduced losses on first-generation EVs, partially offset by higher investment in second-generation products as Ford prepares to launch its “Universal EV Platform” in 2027. She added Ford “rationalized” the near-term role of pure EVs in the U.S. portfolio in December based on market changes.
Ford Credit and banking approval
House said Ford Credit delivered $2.6 billion of full-year EBT and $1.7 billion of distributions, with EBT up 55% due to improved financing margin. She said Ford Credit continues to originate a high-quality book, with U.S. retail and lease FICO scores exceeding 750. House also pointed to approval of Ford Credit’s industrial bank application, which she said could expand capabilities and lower funding costs over time.
2026 outlook: higher earnings, higher capex, and Novelis timeline
For 2026, Ford guided to $8 billion to $10 billion in company adjusted EBIT, $5 billion to $6 billion in adjusted free cash flow, and $9.5 billion to $10.5 billion of capital expenditures. The outlook assumes U.S. SAAR of 16 million to 16.5 million and flat industry pricing.
House said Ford expects tariff costs to be lower by about $1 billion year over year, reflecting a full-year benefit from credit expansion. Ford also expects further material and warranty savings, which management said would help absorb roughly $1 billion of higher commodity costs, incremental investment in the Universal EV Platform, startup costs for Ford Energy, and “cycle plan” actions.
Novelis remained a central topic in guidance. House said Ford expects about $1 billion year-over-year improvement tied to Novelis, though the improvement is expected to be “back half-weighted.” She outlined $1.5 billion to $2 billion of temporary costs—including tariffs and premium freight—to maintain aluminum supply continuity until the hot mill returns, which the company expects between May and September. COO Kumar Galhotra said Ford has contingency plans to secure supply under different restart timing scenarios.
By segment, Ford guided to:
- Ford Pro EBIT: $6.5 billion to $7.5 billion, with management citing continued share growth expectations in North America and continued expansion of software and physical services, though results are expected to be dampened by Novelis impacts, an Oakville ramp to bolster Super Duty capacity in Canada, and regulatory pressure in Europe.
- Model e EBIT: loss of $4.0 billion to $4.5 billion. House said the outlook includes about $1.6 billion of improvement in first-generation EVs driven by lower U.S. volume and restructuring savings, partially offset by around $600 million of higher second-generation costs and roughly $400 million of Ford Energy startup costs. Management reiterated a target for Model e to reach break-even in 2029.
- Ford Blue EBIT: $4.0 billion to $4.5 billion, reflecting expected improvement as Novelis impacts fade, favorable mix, and ongoing cost progress. Executives pointed to upcoming products such as Bronco RTR and Mustang Dark Horse SC.
- Ford Credit EBT: about $2.5 billion.
Strategy updates: affordable EVs, Ford Energy, and Level 3 autonomy
Farley said Ford is shifting EV focus toward “high-volume, affordable” segments and plans to launch multiple vehicles on its Universal EV Platform, starting with a midsize pickup. He also said Ford is leaning into hybrids across its lineup and extended-range EVs where appropriate for duty cycles such as towing in larger trucks.
On Ford Energy, Farley described growing demand for battery storage tied to data center buildouts and grid stability, and said Ford has engaged customers and is pursuing contracts for 20 gigawatt-hours of capacity beginning in 2027 and beyond. House said 2026 capex includes roughly $1.5 billion for Ford Energy as part of a broader $2 billion investment previously discussed. She also said Ford’s capital allocation is shifting, with about 75% of planned capital going to higher-return truck and multi-energy programs, and about 25% to Ford Energy and continued Model e investments.
Farley also addressed Ford’s approach to autonomy, saying the company is bringing Level 3 capability in-house to improve affordability and control the safety-critical customer experience. He said Ford aims to introduce Level 3 with the Universal EV Platform and described a goal of enabling the technology on $30,000 to $35,000 vehicles rather than limiting it to luxury offerings.
House also noted that Ford expects to record about $7 billion in charges in 2026 and 2027 related to its updated EV strategy and an expected disposition of its BOSK investment, with cash expenditures of up to about $5.5 billion, mostly weighted to 2026.
About Ford Motor (NYSE:F)
Ford Motor Company (NYSE: F) is an American multinational automaker headquartered in Dearborn, Michigan. Founded by Henry Ford in 1903, the company became an early pioneer of mass-production techniques with the Model T and the adoption of the moving assembly line. Today, Ford designs, manufactures, markets and services a broad range of vehicles and mobility solutions under the Ford and Lincoln brands, spanning passenger cars, SUVs, pickup trucks and commercial vehicles.
Ford’s business activities extend beyond vehicle production to include parts and aftermarket services, fleet and commercial sales, and automotive financing through Ford Motor Credit Company.
