Ford beat This autumn 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 essentially stronger firm.” Right here’s a breakdown of Ford’s This autumn 2024 earnings.

Ford This autumn 2024 earnings preview

Though it offered a report over 97,000 electrical autos 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 seems to be to match it. Like GM, Ford will probably 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 autos, it stated they achieved a “constructive variable revenue” in This autumn 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 12 months.

In This autumn 2024, Ford is anticipated to report whole 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 put up an adjusted EPS of round $0.33.

Buyers can 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 autumn expectations, posting $48.2 billion in income, up $2.2 billion year-over-year (YOY). Ford generated $185 billion in income for the complete 12 months, its highest ever.

• This autumn 2024 Income: $48.2 billion vs $43 billion anticipated.
• This autumn 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 autumn 2023. Ford’s Blue and Professional items 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 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 stated the upper EV losses had been as a result of pricing strain, 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 recent 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 largest areas of alternative – high quality and price” 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 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 buyers, Farley stated a 25% tariff on imports from Mexico and Canada would have large impacts, creating billions in losses, however it is 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.