Ford beat This fall 2024 earnings, however its EV losses proceed to pile up

Ford (NYSE: F) launched its fourth-quarter earnings report after the market closed on Wednesday, beating high and backside line forecasts. Though its Mannequin e electrical automobile enterprise misplaced one other $5.1 billion final 12 months, CEO Jim Farley guarantees, “Ford is changing into a basically stronger firm.” Right here’s a breakdown of Ford’s This fall 2024 earnings.

Ford This fall 2024 earnings preview

Though it offered a report over 97,000 electrical automobiles final 12 months, Ford was topped by cross-town rival GM because the quantity two vendor of EVs within the US.

After GM beat Wall St expectations final week with upbeat steerage for 2025, Ford appears to match it. Like GM, Ford will seemingly face extra headwinds this 12 months with Trump anticipated to finish federal EV incentives. He’s additionally threatening to impose tariffs on US commerce companions, together with Mexico, the place the Mustang Mach-E is constructed.

Though GM doesn’t report separate breakdown for electrical automobiles, it mentioned they achieved a “constructive variable revenue” in This fall 2024.

After shedding one other $1.2 billion within the third quarter, Ford’s Mannequin e enterprise racked up 3.7 billion in losses via the primary 9 months of 2024. Ford expects EV losses to succeed in round $5 billion for the 12 months.

In This fall 2024, Ford is predicted to report complete firm income of round $43 billion, down from $44 billion a 12 months in the past and $46.2 billion within the third quarter. The corporate is forecasted to publish an adjusted EPS of round $0.33.

Buyers shall be intently watching Ford’s path to EV profitability and the potential affect of tariffs. Final month, Ford’s US gross sales fell 6%, whereas EV gross sales had been up 21%.

Monetary breakdown

Ford beat This fall expectations, posting $48.2 billion in income, up $2.2 billion year-over-year (YOY). Ford generated $185 billion in income for the whole 12 months, its highest ever.

• This fall 2024 Income: $48.2 billion vs $43 billion anticipated.
• This fall 2024 Adjusted EPS: $0.39 vs $0.33 anticipated.

The corporate reported an adjusted EBIT of $2.1 billion within the quarter, up 103% from This fall 2023. Ford’s Blue and Professional models generated $1.6 billion, whereas its Mannequin e unit misplaced one other $1.4 billion.

Ford reported an adjusted EBIT of $9 billion for its Professional enterprise for the total 12 months and $5.3 billion for Ford Blue. Its Mannequin e EV enterprise misplaced $5.1 billion final 12 months. Within the fourth quarter, Ford misplaced about $37,000 on each electrical automobile it offered.

Ford mentioned the upper EV losses had been resulting from pricing stress, with quantity and income falling 9% and 35%, respectively. Ford’s growing older F-150 Lightning and Mustang Mach-E are going through an inflow of latest rivals within the US, such because the Tesla Cybertruck and Chevy Equinox EV.

Farley defined that “In 2025, we count on to make considerably extra progress on our two largest areas of alternative – high quality and value” because it appears to enhance profitability.

Ford expects adjusted EBIT of $7 billion to $8.5 billion in 2025. It’s additionally forecasting that Mannequin e will lose one other $5 to $5.5 billion this 12 months.

Its steerage is barely decrease than anticipated, given the potential affect of Trump’s imposing tariffs on Canada, Europe, and Mexico.

On the earnings name with traders, Farley mentioned a 25% tariff on imports from Mexico and Canada would have huge impacts, creating billions in losses, however it’s going to proceed working with authorities leaders on an answer.

Ford’s inventory fell over 5% on Wednesday’s post-market buying and selling following the report and the potential affect of tariffs.