Ford Motor Company’s 2025 financial results demonstrate a year of strong execution and record revenue, even while navigating significant external challenges. Despite supply chain disruptions and high tariff impacts, the company reported $187 billion in total revenue, marking its fifth consecutive year of growth.Key Highlights from the 2025 Financial Reports• Profitability and Earnings: Ford generated 6.8billioninadjustedEBIT∗∗forthefullyear.Thisfigureincludesacombined∗∗4 billion headwind from the Novellus fires and unexpected tariff impacts; without these one-time factors, EBIT would have been $7.7 billion.• Market Strength: U.S. market share rose to 13.2%, the company’s best performance in six years. Additionally, Ford achieved a Total Shareholder Return (TSR) of 42% and declared a regular first-quarter dividend of 15 cents per share.• Segment Performance:    ◦ Ford Pro: Remained a “key profit pillar,” delivering 66billioninrevenue∗∗and∗∗6.8 billion in EBIT with a double-digit margin. Software and physical services now contribute 19% of this segment’s EBIT.    ◦ Ford Model E: Saw revenue and volume growth of 73% and 69% respectively, though it recorded a full-year EBIT loss of $4.8 billion as the company pivots toward a more affordable, high-volume EV platform.    ◦ Ford Blue: Delivered $3 billion in EBIT, supported by record sales for the Raptor franchise and the highest share of revenue in the U.S. pickup market.• Cash Position: Ford ended the year with a robust 29billionincash∗∗andnearly∗∗50 billion in liquidity, generating $3.5 billion in free cash flow.• 2026 Outlook: The company is targeting an adjusted EBIT of $8 billion to 10billion∗∗andfreecashflowof∗∗5 billion to $6 billion for the upcoming year.

Ford Motor Company Fourth Quarter 2025 Earnings Briefing

Executive Summary

Ford Motor Company concluded fiscal year 2025 with $187 billion in revenue and an adjusted EBIT of $6.8 billion. Despite significant headwinds—including $2 billion in impacts from Novellus facility fires and $2 billion in net tariff costs—the company achieved a 13.2% U.S. market share, its highest in six years, and delivered a Total Shareholder Return (TSR) of 42%.

For 2026, Ford has issued guidance for adjusted EBIT between $8.0 billion and $10.0 billion, with adjusted free cash flow projected at $5.0 billion to $6.0 billion. The company’s strategy, “Ford Plus,” focuses on three distinct segments: Ford Pro (commercial), Ford Blue (internal combustion and hybrid), and Model E (electric vehicles), supplemented by the launch of Ford Energy. Key priorities include the scaling of the Universal EV (UEB) platform, the expansion of high-margin software services, and a disciplined capital allocation aimed at achieving an 8% adjusted EBIT margin by 2029.

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Financial Performance Overview (FY 2025)

Ford’s 2025 performance was characterized by revenue growth for the fifth consecutive year and disciplined inventory management.

Key Financial Metrics

*Note: Excluding a one-time late-year tariff credit change, full-year EBIT would have been $7.7 billion.

Impacting Factors in 2025

• Novellus Fires: A $2 billion headwind resulting from supply chain disruptions in aluminum.
• Tariffs: A $2 billion net impact, which was $1 billion higher than October 2025 estimates due to an unexpected regulatory change in auto part tariff credits effective November 1st.
• Inventory Control: U.S. gross stocks were reduced by 16%, ending the year with a 56-day retail supply.

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Segment Analysis and 2026 Outlook

Ford Pro (Commercial)

Ford Pro remains the company’s primary profit engine, characterized by a durable commercial franchise and growing software integration.

• 2025 Performance: $66 billion in revenue with $6.8 billion in EBIT (double-digit margin).
• Market Share: Holds over 42% of the U.S. Class 1-7 market.
• Software & Services: Now contributes 19% of segment EBIT, nearing the 20% target. Paid software subscriptions grew by 30%.
• 2026 Outlook: EBIT projected at $6.5 billion to $7.5 billion. Growth will be supported by Super Duty and Transit demand, though partially dampened by Novellus-related costs and European regulatory challenges.

Ford Blue (Gas & Hybrid)

Ford Blue leverages the “power of choice,” focusing on iconic franchises and hybrid growth.

• 2025 Performance: $3 billion in EBIT. Revenue was flat as pricing offset a 5% decline in wholesale volume.
• Product Strengths: Maverick and F-150 led hybrid truck sales; Bronco and Explorer maintained segment leadership. The Raptor franchise achieved record sales.
• 2026 Outlook: EBIT projected at $4.0 billion to $4.5 billion. Improvements are expected from a richer mix (Bronco RTR, Mustang Dark Horse SC) and the recovery of volumes lost to Novellus.

Ford Model E (Electric Vehicles)

Ford is resetting its EV strategy toward high-volume, affordable segments and capital efficiency.

• 2025 Performance: EBIT loss of $4.8 billion. While revenue grew 73%, losses reflected heavy investment in second-generation (Gen 2) products.
• Strategy Pivot: Focus has shifted to the “Universal EV” (UEB) platform, a cost-efficient platform for the $35,000 price point.
• 2026 Outlook: EBIT loss of $4.0 billion to $4.5 billion. $1.6 billion in Gen 1 cost improvements will be offset by $600 million in Gen 2 start-up costs and $400 million for Ford Energy.

Ford Credit

• 2025 Performance: EBT of $2.6 billion, up 55% year-over-year.
• 2026 Outlook: EBT of approximately $2.5 billion. The segment recently received approval for an industrial bank application, which is expected to lower funding costs over time.

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Strategic Growth Pillars

The Universal EV (UEB) Platform

The UEB platform is Ford’s “scalable hedge” against regulatory shifts.

• Target Market: Midsize pickups and high-volume segments around $35,000.
• Objective: To achieve profitability in the lower-price EV segment without relying solely on government subsidies, mirroring the cost-efficiency of competitors like Tesla.
• Technology: Will feature Level 3 (L3) autonomy developed in-house via the Latitude team (formerly Argo AI) to ensure safety and affordability.

Ford Energy

A new strategic startup focused on battery storage.

• Investment: $2 billion total, with $1.5 billion allocated for 2026.
• Focus: Battery storage for data centers and grid stability in markets like California, Texas, and Florida.
• Capacity: Targeting 20 gigawatt-hour capacity by 2027 using LFP (Lithium Iron Phosphate) technology licensed from CATL.

Partnerships and Modernization

• Supply Chain: Partnerships with CATL (LFP batteries) and Renault (B-car EVs in Europe) aim to lower capital expenditures and increase scale.
• In-House Architecture: Ford is bringing electrical architecture and Level 3 autonomy in-house to reduce supply chain risk and lower costs by “thousands of dollars per vehicle.”
• Industrial Cost Reductions: Target of $1 billion in further material and warranty cost improvements for 2026.

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Operational Challenges: Novellus and Tariffs

Novellus Aluminum Supply Continuity

The 2025 fires at Novellus facilities remain a primary operational hurdle.

• 2026 Financial Impact: Net $1 billion year-over-year improvement.
• Temporary Costs: $1.5 billion to $2.0 billion in premium freight and tariffs to ensure aluminum supply until the Novellus hot mill restarts (expected between May and September 2026).
• Volume Recovery: Ford lost 100,000 units in 2025 and plans to recover 50,000 to 60,000 units in 2026.

Tariff Dynamics

• 2025 Setback: A regulatory change regarding part credits was expected in May 2026 but implemented in November 2025, resulting in a $1 billion hit.
• 2026 Tailwinds: Ford expects a $1 billion reduction in tariff costs as the full-year benefit of these credits is realized.

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Notable Leadership Quotes

Jim Farley, CEO: “We aren’t just building compliance vehicles at Ford. We’re launching a cost-efficient universal EV platform that will drive profitable growth in the lower price segments where the EVs have continued to thrive in America.”

Jim Farley, CEO: “Software and physical services were 10% and now contributes 19% for Ford Pro’s EBIT, rapidly approaching our 20% target.”

Sherry House, CFO: “Our performance in 2025 demonstrated progress against our Ford Plus plan, not just in growth and profitability, but also quality, capital discipline, the right product portfolio, and consistent cash generation.”

Jim Farley, CEO: “I think the real question that I ask myself is how will the Chinese change the game with all of these in terms of pricing power given the overly competitive subsidized reality… we will have to future-proof our costs around that pricing reality.”