Ford Motor reported a big loss for 2025 because of its troubled electric vehicle division, which it has significantly scaled back.
Ford Motor Company (NYSE:F) on Tuesday reported a fourth-quarter earnings miss, weighed down by unexpected tariff costs and ongoing challenges in its electric vehicle (EV) business, while forecasting a rebound in profits for 2026. The Detroit-based automaker's EV unit, Model e, posted a $1.2 billion loss in the fourth quarter, translating to a negative EBIT margin of 94.6%.
Ford Motor's 2026 outlook gave Wall Street hope for the carmaker and trumped mixed quarterly earnings.
Ford Motor's quarterly core profit fell about 50% to $1 billion as it absorbed higher-than-expected costs from a fire at an aluminum supplier, but CEO Jim Farley predicted strong performance this year as the automaker slashes costs and works to produce globally competitive models.
Ford Motor is set to report fourth-quarter results after markets close Tuesday. Wall Street analysts expect adjusted earnings per share of 19 cents and revenue of $41.83 billion.
While Ford (NYSE: F) was eating through billions of dollars in an attempt to gain a large market share in the US EV market and its EU and China units stagnated, its best-selling, and likely most profitable vehicle, the F-150, continued its gargantuan unit sales.
The Ford worker who called President Donald Trump a "pedophile protector" at a Michigan plant was not disciplined and still has his job, according to his union.
Ford heads into Q4 earnings with rising estimates, strong hybrid demand, and Ford Pro momentum, even as EV sales slump and charges loom.
A trifecta of key economic releases and earnings from several noteworthy firms will be of interest to market watchers this week.
The Chinese automotive industry has become the largest exporter of vehicles globally since 2023 and has been increasingly bringing electric models around the globe. The U.S. auto industry, meanwhile, is refocusing on gas vehicles, and legacy automakers have reported billions of dollars in write-downs on their EVs.
Ford (NYSE: F) recently wrote off $19.5 billion due to the collapse of its EV business.
CEO Jim Farley posted four new photos inside the automaker's rejigged Louisville assembly plant. Two of the photos offer a rare glimpse at prototypes for its upcoming $30,000 EV pickup.