Ford (NYSE: F) launched its fourth-quarter earnings report after the market closed on Wednesday, beating high and backside line forecasts. Though its Mannequin e electrical automobile enterprise misplaced one other $5.1 billion final yr, CEO Jim Farley guarantees, “Ford is turning into a essentially stronger firm.” Right here’s a breakdown of Ford’s This autumn 2024 earnings.
Ford This autumn 2024 earnings preview
Though it bought a document over 97,000 electrical autos final yr, Ford was topped by cross-town rival GM because the quantity two vendor of EVs within the US.
After GM beat Wall St expectations final week with upbeat steerage for 2025, Ford appears to match it. Like GM, Ford will possible face extra headwinds this yr with Trump anticipated to finish federal EV incentives. He’s additionally threatening to impose tariffs on US commerce companions, together with Mexico, the place the Mustang Mach-E is constructed.
Though GM doesn’t report separate breakdown for electrical autos, it stated they achieved a “constructive variable revenue” in This autumn 2024.
After dropping one other $1.2 billion within the third quarter, Ford’s Mannequin e enterprise racked up 3.7 billion in losses by means of the primary 9 months of 2024. Ford expects EV losses to achieve round $5 billion for the yr.
In This autumn 2024, Ford is anticipated to report complete firm income of round $43 billion, down from $44 billion a yr in the past and $46.2 billion within the third quarter. The corporate is forecasted to submit an adjusted EPS of round $0.33.
Traders will probably be carefully watching Ford’s path to EV profitability and the potential affect of tariffs. Final month, Ford’s US gross sales fell 6%, whereas EV gross sales have been up 21%.
Monetary breakdown
Ford beat This autumn expectations, posting $48.2 billion in income, up $2.2 billion year-over-year (YOY). Ford generated $185 billion in income for the whole yr, its highest ever.
- This autumn 2024 Income: $48.2 billion vs $43 billion anticipated.
- This autumn 2024 Adjusted EPS: $0.39 vs $0.33 anticipated.
The corporate reported an adjusted EBIT of $2.1 billion within the quarter, up 103% from This autumn 2023. Ford’s Blue and Professional models generated $1.6 billion, whereas its Mannequin e unit misplaced one other $1.4 billion.
Ford reported an adjusted EBIT of $9 billion for its Professional enterprise for the complete yr and $5.3 billion for Ford Blue. Its Mannequin e EV enterprise misplaced $5.1 billion final yr. Within the fourth quarter, Ford misplaced about $37,000 on each electrical automobile it bought.
Ford stated the upper EV losses have been resulting from pricing strain, with quantity and income falling 9% and 35%, respectively. Ford’s growing older F-150 Lightning and Mustang Mach-E are going through an inflow of recent rivals within the US, such because the Tesla Cybertruck and Chevy Equinox EV.
Farley defined that “In 2025, we anticipate to make considerably extra progress on our two greatest areas of alternative – high quality and value” because it appears to enhance profitability.
| Q1 2023 | Q2 2023 | Q3 2023 | This autumn 2023 | Full-12 months 2023 | Q1 2024 | Q2 2024 | Q3 2024 | This autumn 2024 | Full-12 months 2024 | 2025 Forecast | |
| Ford Mannequin 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 additionally forecasting that Mannequin e will lose one other $5 to $5.5 billion this yr.
Its steerage is barely decrease than anticipated, given the potential affect of Trump’s imposing tariffs on Canada, Europe, and Mexico.
On the earnings name with traders, Farley stated a 25% tariff on imports from Mexico and Canada would have large impacts, creating billions in losses, however it is going to proceed working with authorities leaders on an answer.
Ford’s inventory fell over 5% on Wednesday’s post-market buying and selling following the report and the potential affect of tariffs.
