The Blubber

Ford exceeded Q4 2024 expectations, posting $48.2 billion in revenue, up $2.2 billion compared to the same period last year. For the full year, Ford recorded $185 billion in revenue—its highest ever.

Q4 2024 Results:

• Revenue: $48.2 billion (vs. $43 billion expected)
• Adjusted EPS: $0.39 (vs. $0.33 expected)

The company reported an adjusted EBIT of $2.1 billion for the quarter, more than doubling its Q4 2023 results. Ford’s Blue and Pro units contributed $1.6 billion in EBIT, while its Model e electric vehicle (EV) division posted a $1.4 billion loss.

For the full year, Ford Pro reported $9 billion in adjusted EBIT, and Ford Blue delivered $5.3 billion. However, the Model e EV unit lost $5.1 billion for 2024, with a loss of approximately $37,000 per EV sold in Q4 alone.

Higher EV losses were attributed to pricing pressure as competition grew, with sales volume and revenue dropping 9% and 35%, respectively. New rivals like Tesla’s Cybertruck and the Chevy Equinox EV are challenging Ford’s aging F-150 Lightning and Mustang Mach-E.

CEO Jim Farley emphasized plans for improvement:
“In 2025, we expect to make significantly more progress on our two biggest areas of opportunity—quality and cost—so we can enhance profitability,” Farley said.

Quarterly EV Losses

Ford expects adjusted EBIT of $7 billion to $8.5 billion in 2025. However, it is projecting another $5 to $5.5 billion in Model e losses this year, continuing its challenge to reach profitability in the EV market.

Adding to concerns, Ford’s guidance is slightly below expectations due to potential tariffs imposed by former President Trump on imports from Canada, Europe, and Mexico.

During the earnings call, Farley warned that a 25% tariff on imports from Mexico and Canada would result in billions in losses but said Ford is working with government officials to find a solution.