Ford launched its fourth-quarter earnings report after the market closed on Wednesday, beating prime and backside line forecasts. Though its Mannequin e electrical car enterprise misplaced one other $5.1 billion final yr, CEO Jim Farley guarantees, “Ford is turning into a essentially stronger firm.” Right here’s a breakdown of Ford’s This fall 2024 earnings.
Ford This fall 2024 earnings preview
Though it bought a file over 97,000 electrical automobiles final yr, 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 steering for 2025, Ford seems to be to match it. Like GM, Ford will probably face extra headwinds this yr 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 dropping one other $1.2 billion within the third quarter, Ford’s Mannequin e enterprise racked up 3.7 billion in losses by way of the primary 9 months of 2024. Ford expects EV losses to succeed in round $5 billion for the yr.
In This fall 2024, Ford is predicted to report whole firm income of round $43 billion, down from $44 billion a yr 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 will probably be carefully watching Ford’s path to EV profitability and the potential influence 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 yr, 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 complete yr and $5.3 billion for Ford Blue. Its Mannequin e EV enterprise misplaced $5.1 billion final yr. Within the fourth quarter, Ford misplaced about $37,000 on each electrical car it bought.
Ford mentioned the upper EV losses had been attributable to pricing stress, with quantity and income falling 9% and 35%, respectively. Ford’s ageing F-150 Lightning and Mustang Mach-E are dealing with an inflow of latest rivals within the US, such because the Tesla Cybertruck and Chevy Equinox EV.
Farley defined that “In 2025, we anticipate to make considerably extra progress on our two greatest areas of alternative – high quality and value” because it seems to be 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 yr.
Its steering is barely decrease than anticipated, given the potential influence of Trump’s imposing tariffs on Canada, Europe, and Mexico.
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