The Ford Exhibition Area was on display on January 10, 2025 at the 2025 Detroit Auto Show at Huntington Square in Detroit, Michigan.
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Detroit – Ford electric motor Beat Wall Street’s fourth quarter launch and bottom line expectations, but the company expects it will be tougher as CEO Jim Farley promises to improve vehicle quality and increase costs.
Ford’s stock fell 5% in after-hours trading.
Ford’s forecast for this year requires $7 billion to $8.5 billion in adjusted earnings and taxes (EBIT); adjusted free cash flow of $3.5 billion to $4.5 billion; and capital expenditure of $8 billion to $9 billion.
In 2024, Ford reported adjusted EBIT of $10.2 billion, or adjusted earnings per share, and net income of $5.9 billion, or $1.46. The automaker reported a company record of $185 billion in revenue, including its financial sector.
This is the company’s performance in the fourth quarter, while the average estimate of the LSEG assembly:
- Earnings per share: 39 cents adjustment and expected 33 cents
- Car revenue: $44.9 billion vs. $43.02 billion
The company said its 2025 guidance meets or is below the guidance many analysts expect, “assuming it is related to market factors.” Trump administration tariffs.
“Think about Current tariff situationEspecially in Mexico and Canada, we are not currently choosing to take any action,” said Ford CFO Sherry House. “We will drain all of this so we can better understand the potential impact on our business. “
House said this year’s forecast also takes into account expectations of $1 billion lower in materials and warranty costs compared to last year. Ford said this is $1.4 billion in 2024 to reduce costs.
It is expected that the first half of this year will be weaker than the backend. These include the first-quarter adjusted EBIT, which is expected to launch activities at major U.S. assembly plants in Kentucky and Michigan due to lower wholesale and lower production profitable vehicles.
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Ford reported net income of $1.8 billion, or 45 cents per share, compared with a net loss of $526 million, or 13 cents per share, in the fourth quarter of 2024. Earl of the yearr. Adjusted for disposable items, the company reported earnings per share of 39 cents.
Ford’s performance after Crosstown rivals are under pressure General motor The fourth quarter expectations on Wall Street were easy and said its 2025 guidance matched analyst expectations.
Ford’s poor performance last year was largely due to unexpected warranties and recall issues that plagued the company’s earnings. Among the issues, the automaker’s stock fell nearly 20% in 2024, and Farley promised to correct that.
Farley told reporters last month: “I’m very excited about this year because it’s an opportunity for Ford, like the ’07 and ’08 in ’08, to take our future in our own hands and be like we should Performance financially. ” “It’s all in our team.”
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