Ford $F ( ▲ 0.77% ) closed out the year with mixed results, beating revenue estimates in the fourth quarter while falling short on earnings. The automaker is navigating a challenging backdrop that includes tariffs, shifting EV policies, and supply chain disruptions.
Shares edged higher after the report, but the outlook shows the road ahead is still bumpy.
Sales Hold Up, Profits Feel the Strain
Ford $F reported adjusted earnings of $0.13 per share, below the $0.18 analysts were expecting. Revenue came in at $45.9 billion, down 5% from a year earlier but still ahead of Wall Street’s $43.6 billion forecast.
The numbers reflect a company still generating strong sales, but dealing with higher costs and pressure on margins.
Big EV Losses Still Ahead
Looking to 2026, Ford $F expects adjusted earnings before interest and taxes between $8 billion and $10 billion, roughly in line with analyst expectations. However, its electric vehicle unit, Ford Model e, is projected to lose between $4 billion and $4.5 billion next year.
Those losses highlight how expensive the transition to EVs remains, even as legacy automakers ramp up production and invest in new platforms.
Weak Sales Trends Add Pressure
Recent sales data has not been encouraging. Ford reported a 5.3% drop in US sales in January, with truck sales down 9% and EV sales plunging 69%. The company also halted production of two SUVs in December as it retools factories for a new EV manufacturing process in Louisville.
Ford $F plans to introduce a new $30,000 electric truck in 2027, a move aimed at boosting EV volumes with a more affordable option. Until then, investors are watching closely to see how well Ford can balance near term profitability with its long term EV ambitions.