Ford’s Q4 earnings missed sharply on tariffs and supply issues, but management sees 2026 as a rebound year driven by Ford Pro and Blue strength.
Summary:
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Ford posts biggest earnings miss in four years
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Tariffs and supply disruptions hit Q4 results
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Revenue beats but margins disappoint
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Model e losses persist despite slight improvement
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2026 framed as rebound year
Ford Motor delivered its largest quarterly earnings miss in four years in Q4 2025, as unexpected tariff costs and supply-chain disruptions overshadowed stronger-than-expected revenue and a more constructive outlook for 2026.
Adjusted earnings came in at $0.13 per share, well below consensus expectations, despite revenue beating forecasts at $45.9bn. The earnings shortfall was largely driven by roughly $900m in tariff-related costs, stemming from delayed implementation of auto-parts credits. Additional pressure came from ongoing fallout linked to a fire at a key Novelis aluminium supplier plant, which continues to disrupt supply for Ford’s high-margin F-Series trucks.
By business line, Ford Blue revenue exceeded expectations but EBIT fell short, while Ford Pro posted solid revenue yet saw EBIT decline 24% y/y, reflecting tougher cost dynamics. The Model e electric vehicle division remained deeply loss-making, though losses were slightly narrower than anticipated.
Despite the Q4 stumble, management positioned 2026 as a rebound year. Ford guided to adjusted EBIT of $8bn–$10bn, up from $6.8bn in 2025, alongside adjusted free cash flow of $5bn–$6bn. Capital expenditure is set to rise to $9.5bn–$10.5bn, reflecting continued investment across both ICE and EV platforms.
Executives argued the company’s core operations are improving, with the profitable Ford Pro and traditional Blue divisions expected to more than offset projected $4bn–$4.5bn losses at Model e this year. Management also noted that while tariff impacts remain sizeable, the net effect is expected to be broadly flat year-on-year in 2026.
On a reported basis, Ford posted a Q4 net loss of $11.1bn, driven by significant one-off charges linked to its strategic pullback from all-electric vehicle ambitions.
This article was written by Eamonn Sheridan at investinglive.com.