Detroit – Ford Motor CEO Jim Farley has beaten Wall Street’s fourth quarter top line and bottom line expectations as he promises to improve vehicle quality and costs, but predicts a tough year for the company .
Ford shares fell 5% in after-hours trading.
This year’s Ford forecasts require adjusted revenues of between $7 billion and $8.5 billion with interest and pre-tax adjusted earnings. Adjusted free cash flow between $3.5 billion and $4.5 billion. Capital expenditures of $8 billion to $9 billion.
In 2024, Ford reported an adjusted EBIT of $10.2 billion in adjusted earnings per share, or $1.84, net income of $5.9 billion, and profit of $1.46 per share. The automaker had a company record of $185 billion in total revenue, including its financial sector, and adjusted free cash flow of $6.7 billion.
“We think it’s wise. There are a lot of external factors… but our future is really in our hands,” Farley said on Wednesday that “closing bell” on CNBC’s warning guidance. I said.
Here’s how the company performed in the fourth quarter compared to the average estimate compiled by LSEG:
Earnings per share: 39 cents adjusted vs. 33 cents expected revenue: $44.9 billion vs. $43.02 billion
The company said 2025 guidance, which is either lined up or lower than many analysts expect, “assuming headwinds related to market factors.” These include low prices in the industry at 2% and slightly lower Ford wholesale, but not additional tariffs from the Trump administration.
“We have not chosen to take any action at this time given the current tariff situation, particularly the suspension in Mexico and Canada,” Ford’s chief financial officer Shelley House told the media over the phone Wednesday. . “We will make sure we can better understand the potential impact on our business in order to do this.”
Ford, GM, Stellantis, Tesla stocks
House said this year’s forecasts take into account expectations for a $1 billion reduction in materials and warranty costs compared to last year. This was largely offset by unexpected quality and guaranteed costs following a $1.4 billion cost savings in 2024.
It is expected that the first half of 2025 will be weaker than the backend. This includes the first quarter, which is expected to be roughly break-even due to low wholesale and less profitable vehicles being produced, including launch activities at major US assembly plants in Kentucky and Michigan. Includes adjustable eBIT.
In the fourth quarter of 2024, Ford reported net income of $1.8 billion and 45 cents per share, but net losses of $526 million or 13 cents a year ago. Compared and reported. Adjusting the one-off items, the company reported earnings per share of 39 cents.
Ford’s traditional “blue” operations and “pro” fleet operations earned car makers as the “Model E” electric vehicle business lost $5.08 billion in 2024, including $139 billion in the fourth quarter. It led to sexuality.
The Ford exhibition area is on display at the 2025 Detroit Auto Show held at Huntington Place, Detroit, Michigan on January 10th, 2025.
Bill Pugliano | Getty Images
The blue business, which includes internal combustion engines, won $5.2 billion in 2024, a decline of about $2.2 billion from the previous year. The pros won more than $9 billion in the fourth quarter last year, including $1.63 billion.
In 2025, Ford forecasts EBITs of $7.5 billion to $8 billion from Ford Pro. $3.5 billion to $4 billion in Ford Blue. Loss between $5 billion and $5.5 billion on the Ford Model E. The Ford Credit Arm is expected to record $2 billion in profit.
Ford was under pressure to perform after his Crosstown rivals General Motors He easily breached Wall Street’s fourth quarter expectations, saying the 2025 guidance was in line with analysts’ expectations.
Ford fell below last year’s expectations due to unexpected guarantees and issues that plagued the company’s revenue. In 2024, automaker stocks fell nearly 20% amid issues Farley promised to correct them.
