Ford Q4 Earnings Miss Expectations, Revenues Decline Y/Y

Ford F reported fourth-quarter 2025 adjusted earnings per share of 13 cents, which missed the Zacks Consensus Estimate of 17 cents and declined from 39 cents recorded in the year-ago quarter. The company’s consolidated fourth-quarter revenues came in at $45.9 billion, down 4.8% year over year. F’s total automotive revenues came in at $42.5 billion, beating the Zacks Consensus Estimate of $41.2 billion but declining from the $44.9 billion generated a year ago.

Ford Motor Company Price, Consensus and EPS Surprise

Ford Motor Company price-consensus-eps-surprise-chart | Ford Motor Company Quote

Segmental Performance

In the fourth quarter, total wholesale volume in the Ford Blue segment decreased 8% year over year to 712,000 units, but exceeded the Zacks Consensus Estimate of 637,000 units. Revenues from the segment fell 4% year over year to $26.2 billion but topped the Zacks Consensus Estimate of $23.57 billion due to higher-than-expected units sold. Earnings before interest and taxes came in at $727 million, below the Zacks Consensus Estimate of $779 million. EBIT margin of 2.8% was down 3 percentage points from the corresponding quarter of 2024.

Total wholesale volume in the Ford Model e segment remained flat year over year at 37,000 units and lagged the Zacks Consensus Estimate of 40,160. Revenues from the segment declined 7.1% year over year to $1.3 billion but exceeded the Zacks Consensus Estimate of $1.22 billion. The segment incurred a loss before interest and taxes of $1.22 billion compared with the Zacks Consensus Estimate of a loss of $1.39 billion.

Total wholesale volume in the Ford Pro segment decreased 11% year over year to 334,000 and missed the Zacks Consensus Estimate of 345,000 units. Revenues from the segment fell 8% year over year to $14.9 billion, missing the Zacks Consensus Estimate of $15.04 billion on lower-than-expected units sold. Earnings before interest and taxes came in at $1.23 billion with an EBIT margin of 8.2%. EBIT was below the Zacks Consensus Estimate of $1.43 billion.

Fourth-quarter revenues from the Ford Credit unit came in at $3.4 billion, up 4.2% year over year and topped the Zacks Consensus Estimate of $3.44 billion. Pretax earnings were roughly $2.6 billion, up 55% year over year.

Financial Position

Ford reported a negative adjusted free cash flow of $2.14 billion for the quarter. It had cash and cash equivalents of $23.36 billion as of Dec. 31, 2025. Long-term debt, excluding Ford Credit, totaled $16.37 billion as of Dec. 31, 2025.

2026 Outlook

Ford expects full-year 2026 adjusted EBIT in the range of $8-$10 billion, up from $6.78 billion in 2025. It expects adjusted free cash flow in the range of $5-$6 billion, up from $3.5 billion recorded in 2025. Capital expenditures are expected to be around $9.5-$10.5 billion.

Ford’s Zacks Rank & Other Key Picks

F sports a Zacks Rank #1 (Strong Buy) at present. 

Some other top-ranked stocks in the auto space are Modine Manufacturing Company MOD, Strattec Security Corporation STRT and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 65 cents, respectively, in the past seven days. 

The Zacks Consensus Estimate for STRT’s fiscal 2026 earnings implies year-over-year growth of 0.4%. EPS estimates for fiscal 2026 have improved 16 cents in the past 30 days. EPS estimates for fiscal 2027 have improved 48 cents in the past seven days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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