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Ford missed Wall Street expectations by a wide margin in the fourth quarter, delivering earnings per share of just $0.13 when analysts expected $0.19.
That’s a 32% miss, the worst the company has reported since 2021. It was also the first quarterly earnings miss since 2024.
Ford blamed unexpected $900 million in tariff costs, saying those charges hit harder than expected because credits for parts didn’t apply as early as planned. Before that hit, Ford had anticipated $7.7 billion in EBIT for the quarter. The final figure dropped to $6.8 billion.
Even though Ford’s automotive revenue hit $42.4 billion, which was slightly above the $41.83 billion consensus, total company revenue fell 5% to $45.9 billion.
Ford’s net income collapsed from a $1.8 billion profit in Q4 2024 to a massive $11.1 billion loss in Q4 2025. That’s a swing of $12.9 billion. Diluted EPS turned negative too, going from $0.45 to a brutal loss of $2.77. The margin for net income plunged from 3.8% to -24.1%.
Ford’s 2025 performance shows weakness across every major segment
On a full-year basis, Ford posted revenue of $187.3 billion, up 1%, but that’s where the improvement stops. The company booked a full-year net loss of $8.2 billion, swinging down from a $5.9 billion profit in 2024.
Ford’s diluted EPS for the year collapsed by $3.52, from $1.46 to -2.06. Adjusted EBIT also dropped from $10.2 billion to $6.8 billion, and adjusted free cash flow fell from $6.7 billion to $3.5 billion.
Every major business segment showed cracks. Ford Blue, the legacy gas-powered division, saw revenue drop 1% to $101 billion, with EBIT down $2.2 billion to $3.0 billion. Wholesale units slipped 5%.
Bronco hit a new sales record, and F-150 and Maverick led hybrid pickup sales, but that wasn’t enough to lift the entire segment.
Ford Pro, the commercial unit, lost steam too. Revenue fell to $66.3 billion, while EBIT tumbled by $2.1 billion to $6.8 billion. Margins slid from 13.5% to 10.3%.
Super Duty pickups had their strongest year since 2004, and Transit vans posted a record volume, but those high points didn’t stop the bleed. Paid software subscriptions did rise 30% during 2025.
Ford Model e, the electric vehicle unit, continued to rack up losses. The segment reported a $4.8 billion EBIT loss, slightly better than 2024’s $5.1 billion loss. Model e revenue jumped to $6.7 billion, up 73%, but margins are still ugly: -72.1%. The company sold 178,000 units, a 69% jump from the prior year, yet still can’t get this business out of the red.
Company outlines bigger 2026 targets despite brutal earnings miss
Despite everything, Ford laid out a more aggressive plan for 2026. The company expects adjusted EBIT to land between $8 billion and $10 billion, which would be a decent jump from 2025’s $6.8 billion.
They also guided for $5 to $6 billion in free cash flow, up from $3.5 billion, and capex to rise to $9.5 to $10.5 billion, including $1.5 billion to ramp Ford Energy.
Segment guidance also shows bold projections. Ford Pro is expected to deliver $6.5 to $7.5 billion in EBIT, Ford Blue is targeting $4.0 to $4.5 billion, and Model e is still expected to lose $4.0 to $4.5 billion.
Ford Credit, which reported a strong 2025 with $2.6 billion in earnings before taxes (up 55%), is expected to book $2.5 billion in 2026.
CEO Jim Farley said, “We made critical strategic decisions that set us up for a stronger future.” CFO Sherry House added, “A disciplined approach to capital efficiency will drive stronger results in 2026 and beyond.”
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