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FORD MOTOR CO

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Business Summary

Ford Motor Company is a global automotive and mobility company based in Dearborn, Michigan, operating through three customer-centered business segments: Ford Blue, Ford Model e, and Ford Pro, along with a financial services segment, Ford Credit. The worldwide automotive industry is affected significantly by general economic and political conditions, and the industry is highly competitive with a wide and growing variety of product and service offerings from a growing number of manufacturers. The company sells vehicles, parts, and accessories through a network of approximately 8,226 dealerships worldwide as of December 31, 2025, the substantial majority of which are independently owned. Ford's vehicle brands are Ford and Lincoln, and in 2025 the company sold approximately 4,395,000 vehicles at wholesale throughout the world.

The worldwide automotive industry consists of many producers, with no single dominant producer. Ford's competitive position is influenced by how its products are perceived by customers compared to those offered by other manufacturers based on factors including price, quality, styling, reliability, safety, fuel efficiency, functionality, sustainability, and reputation. In the United States, Ford's market share was 13.2% in 2025, up from 12.6% in 2024 and 12.4% in 2023. In Canada, market share was 15.2% in 2025, and in the United Kingdom it was 9.8% .

Ford generates revenue primarily through the sale of vehicles, parts, accessories, and services from its Ford Blue, Ford Model e, and Ford Pro segments, with revenue recorded when control is transferred to customers, generally when products are shipped from manufacturing facilities. The Ford Credit segment earns revenue primarily from payments made under retail installment sale and finance lease contracts, operating lease contracts, interest rate supplements and other support payments from Ford and its affiliates, and payments made under dealer financing programs. Revenue from extended service contracts is recognized over the term of the agreement in proportion to the costs expected to be incurred, and revenue related to other future or stand-ready performance obligations is generally recognized on a straight-line basis.

Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine and hybrid vehicles, service parts, accessories, and digital services for retail customers, along with the associated costs of development, manufacture, and distribution. In 2025, Ford Blue reported revenue of $101,019 million and EBIT of $3,024 million with an EBIT margin of 3.0% . Ford Model e primarily includes the sale of electric vehicles, including extended range electric vehicles, service parts, accessories, and digital services for retail customers, and focuses on developing EV and digital vehicle technologies as well as software development. In 2025, Ford Model e reported revenue of $6,670 million and an EBIT loss of $4,806 million with an EBIT margin of negative 72.1% . Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers, and focuses on selling ICE, hybrid, and electric vehicles and providing digital and physical services to optimize and maintain fleets. In 2025, Ford Pro reported revenue of $66,286 million and EBIT of $6,843 million with an EBIT margin of 10.3% . Ford Credit provides vehicle-related financing and leasing activities, and in 2025 reported earnings before taxes of $2,557 million and total net receivables of $146.3 billion .

In December 2025, Ford announced an updated EV strategy, including the cancellation of three previously planned EVs and ending production of the current generation F-150 Lightning EV, resulting in an $8.4 billion pre-tax non-cash impairment charge for Model e long-lived assets, $1.1 billion of non-cash asset write-downs related to EV program cancellations, and $1.2 billion of other charges to be paid in cash. Also in December 2025, Ford, SK On Co., Ltd., and SK Battery America, Inc., and BlueOval SK, LLC entered into a Joint Venture Disposition Agreement, pursuant to which Ford's membership interest in BOSK will be redeemed, and a Ford subsidiary will receive BOSK's two Kentucky plants and related assets and assume the related liabilities, resulting in a $3.2 billion pre-tax non-cash impairment charge recorded in the fourth quarter of 2025. In total, in the fourth quarter of 2025, Ford recorded about $13.8 billion of charges related to its updated EV strategy and the expected disposition of its BOSK investment. Ford's gross costs related to tariffs implemented or revised in 2025 was about $3 billion , and the net EBIT impact was about $2 billion after offsets. As of December 31, 2025, Ford recognized a receivable of $974 million reflecting tariffs paid but for which it had not yet received refunds.

In 2025, total Company revenue was $187,267 million , compared to $184,992 million in 2024. The net loss attributable to Ford Motor Company was $8,182 million in 2025, compared to net income of $5,879 million in 2024. Company adjusted EBIT was $6,780 million in 2025, compared to $10,208 million in 2024. Diluted earnings per share was a loss of $2.06 in 2025, compared to earnings of $1.46 in 2024. Net income margin was negative 4.4% in 2025, down from 3.2% in 2024. Company adjusted EBIT margin was 3.6% in 2025, down from 5.5% in 2024. Cash flows from operating activities were $21.3 billion in 2025, compared to $15.4 billion in 2024.

Business Outlook

For full-year 2026, Ford expects adjusted EBIT of $8.0 billion to $10.0 billion and adjusted free cash flow of $5.0 billion to $6.0 billion . On a segment basis, Ford expects Ford Pro EBIT of $6.5 billion to $7.5 billion , Ford Blue EBIT of $4.0 billion to $4.5 billion , Ford Model e EBIT loss of $4.0 billion to $4.5 billion , and Ford Credit EBT of about $2.5 billion . The outlook assumes a U.S. SAAR of 16.0 million to 16.5 million and flat U.S. industry pricing.

Ford's growth strategy, the Ford+ plan, is designed to leverage foundational strengths with enhanced capabilities to enrich customer experiences and deepen loyalty, transforming the business into a higher growth, higher margin, more capital efficient, and more durable company. The strategy involves providing customers freedom of choice to select the powertrain that best suits their needs and maintaining manufacturing flexibility to meet shifting customer demand. Ford is making substantial investments in electrification, connectivity, digital and physical services, and software services, including the development of BlueCruise, its hands-free highway driving system, and the ramp of Ford Energy. The company is also evaluating and implementing alternative distribution models and channels for its products and services.

Ford's growth also depends on the development and deployment of secure digital services that appeal to customers, retaining existing subscribers, and growing subscription rates. The company is devoting significant resources to develop this business and has announced plans and expectations for integrated services to become a larger portion of its revenue and earnings. Ford is also focused on expanding its commercial vehicle business through Ford Pro, which helps commercial customers transform and expand their businesses with vehicles and services tailored to their needs, including telematics and EV charging solutions.

For 2026, Ford expects lower tariff costs of about $1.0 billion , reflecting a full year's worth of credit expansion, and further material and warranty cost reductions. These lower costs are expected to offset about $1.0 billion of higher commodity prices, driven by inflation, and incremental investment in support of the Universal EV platform, the ramp of Ford Energy, and cycle plan actions. Excluding the impact of Novelis, Ford expects about flat cost, with positive market factors including favorable mix associated with the sunset of low-margin nameplates and benefits from changes in the U.S. regulatory environment.

With respect to the Novelis aluminum supply disruption, in 2025 the fires were a headwind of $2 billion . In 2026, Ford expects a year-over-year improvement of about $1.0 billion , which includes $1.5 billion to $2.0 billion of temporary costs, including tariffs, attributable to continuity in aluminum supply. Capital spending is expected to be in the range of $9.5 billion to $10.5 billion in 2026. During 2026, Ford expects to contribute about $550 million to its global funded pension plans and expects to make about $400 million of benefit payments to participants in unfunded plans.

Ford generally targets shareholder distributions of 40% to 50% of adjusted free cash flow. On February 2, 2026, Ford declared a regular dividend of $0.15 per share. Ford Credit projects full year public term funding in the range of $24 billion to $30 billion for 2026.

Ford faces significant headwinds from trade policy, including tariffs implemented in the United States and elsewhere, which have caused significant disruption, increased costs, and uncertainty in the automotive industry. The company notes that tariffs, particularly on auto parts for U.S. assembly, if sustained for an extended period of time, will have a significant adverse effect on U.S. production and the overall automotive industry. Additionally, the EV market continues to evolve with lower-than-anticipated industrywide EV adoption rates due to changes in consumer sentiment, competitive dynamics, legal and policy changes, and significant developments in vehicle pricing dynamics, which may be further exacerbated by policy changes in the United States that have reduced or eliminated supply- and demand-side EV incentives.

Ford also faces constraints from the potential for further production disruptions, including from the Novelis aluminum supply situation, and from the ongoing volatility in commodity and energy prices, foreign currency exchange rates, and interest rates. The company's ability to comply with increasingly stringent and changing safety, emissions, fuel economy, and environmental regulations across different jurisdictions presents a significant constraint, particularly as the pace of EV adoption and slower-than-anticipated development of the EV market may impact its strategy to comply with regulatory standards.

Risk Factors

Ford faces material risks from the significant and uncertain impact of trade policy, including tariffs, which in 2025 resulted in gross costs of about $3 billion and a net EBIT impact of about $2 billion . The company's long-term success depends on executing the Ford+ plan and improving cost competitiveness, and failure to do so could have an adverse effect. Product quality issues have led and could continue to lead to recall campaigns and increased warranty costs; for example, Ford has 3.5 million vehicles with Takata desiccated airbag inflators and 2.5 million vehicles with ARC Automotive inflators under NHTSA review. The company is highly dependent on its supply chain, and disruptions such as the Novelis aluminum plant fires, which caused a $2 billion headwind in 2025, can significantly impact production. Ford's substantial investments in electrification are subject to risks from lower-than-anticipated EV adoption rates, which have led to charges including $8.4 billion in asset impairments and $3.2 billion for the BOSK joint venture disposition. The company also faces risks from multi-year offtake agreements for raw materials, with estimated maximum purchase commitments of approximately $4.7 billion through 2035, which could result in financial obligations if demand is lower than expected.

Management Priorities

Management's message emphasizes the Ford+ plan for growth and value creation, which combines existing strengths with new capabilities and always-on relationships with customers. The tone is focused on navigating a complex global environment, including significant challenges from trade policy, the evolving EV market, and the need to improve cost competitiveness and quality. Key strategic priorities for the period ahead include executing the Ford+ plan, improving cost competitiveness and quality, and optimizing capital allocation among vehicles, services, and technology. Management provided specific 2026 guidance for adjusted EBIT of $8.0 billion to $10.0 billion and adjusted free cash flow of $5.0 billion to $6.0 billion , with segment-level expectations for Ford Pro EBIT of $6.5 billion to $7.5 billion , Ford Blue EBIT of $4.0 billion to $4.5 billion , Ford Model e EBIT loss of $4.0 billion to $4.5 billion , and Ford Credit EBT of about $2.5 billion .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Dealerships
  2. [2] Item 1, Business — Wholesales
  3. [3] Item 1, Business — Sales, Industry Volume, and Market Share
  4. [4] Item 1, Business — Sales, Industry Volume, and Market Share
  5. [5] Item 1, Business — Sales, Industry Volume, and Market Share
  6. [6] Item 1, Business — Sales, Industry Volume, and Market Share
  7. [7] Item 1, Business — Sales, Industry Volume, and Market Share
  8. [8] Item 7, MD&A — Ford Blue Segment
  9. [9] Item 7, MD&A — Ford Blue Segment
  10. [10] Item 7, MD&A — Ford Blue Segment
  11. [11] Item 7, MD&A — Ford Model e Segment
  12. [12] Item 7, MD&A — Ford Model e Segment
  13. [13] Item 7, MD&A — Ford Model e Segment
  14. [14] Item 7, MD&A — Ford Pro Segment
  15. [15] Item 7, MD&A — Ford Pro Segment
  16. [16] Item 7, MD&A — Ford Pro Segment
  17. [17] Item 7, MD&A — Ford Credit Segment
  18. [18] Item 7, MD&A — Ford Credit Segment
  19. [19] Item 7, MD&A — Key Trends and Economic Factors
  20. [20] Item 7, MD&A — Key Trends and Economic Factors
  21. [21] Item 7, MD&A — Key Trends and Economic Factors
  22. [22] Item 7, MD&A — Key Trends and Economic Factors
  23. [23] Item 7, MD&A — Key Trends and Economic Factors
  24. [24] Item 7, MD&A — Key Trends and Economic Factors
  25. [25] Item 7, MD&A — Key Trends and Economic Factors
  26. [26] Item 7, MD&A — Key Trends and Economic Factors
  27. [27] Item 7, MD&A — Company Key Metrics
  28. [28] Item 7, MD&A — Company Key Metrics
  29. [29] Item 7, MD&A — Company Key Metrics
  30. [30] Item 7, MD&A — Company Key Metrics
  31. [31] Item 7, MD&A — Company Key Metrics
  32. [32] Item 7, MD&A — Company Key Metrics
  33. [33] Item 7, MD&A — Company Key Metrics
  34. [34] Item 7, MD&A — Company Key Metrics
  35. [35] Item 7, MD&A — Company Key Metrics
  36. [36] Item 7, MD&A — Company Key Metrics
  37. [37] Item 7, MD&A — Company Key Metrics
  38. [38] Item 7, MD&A — Company Key Metrics
  39. [39] Item 7, MD&A — Company Key Metrics
  40. [40] Item 7, MD&A — Company Key Metrics
  41. [41] Item 7, MD&A — Outlook
  42. [42] Item 7, MD&A — Outlook
  43. [43] Item 7, MD&A — Outlook
  44. [44] Item 7, MD&A — Outlook
  45. [45] Item 7, MD&A — Outlook
  46. [46] Item 7, MD&A — Outlook
  47. [47] Item 7, MD&A — Outlook
  48. [48] Item 7, MD&A — Outlook
  49. [49] Item 7, MD&A — Outlook
  50. [50] Item 7, MD&A — Outlook
  51. [51] Item 7, MD&A — Outlook
  52. [52] Item 7, MD&A — Outlook
  53. [53] Item 7, MD&A — Liquidity and Capital Resources
  54. [54] Item 7, MD&A — Total Company Pension and OPEB Plan
  55. [55] Item 7, MD&A — Total Company Pension and OPEB Plan
  56. [56] Item 7, MD&A — Liquidity and Capital Resources
  57. [57] Item 5, Market for Registrant's Common Equity — Dividends
  58. [58] Item 7, MD&A — Ford Credit Segment
  59. [59] Item 7, MD&A — Key Trends and Economic Factors
  60. [60] Item 7, MD&A — Key Trends and Economic Factors
  61. [61] Item 1A, Risk Factors
  62. [62] Item 1A, Risk Factors
  63. [63] Item 7, MD&A — Outlook
  64. [64] Item 7, MD&A — Key Trends and Economic Factors
  65. [65] Item 7, MD&A — Key Trends and Economic Factors
  66. [66] Item 7, MD&A — Liquidity and Capital Resources
  67. [67] Item 7, MD&A — Outlook
  68. [68] Item 7, MD&A — Outlook
  69. [69] Item 7, MD&A — Outlook
  70. [70] Item 7, MD&A — Outlook
  71. [71] Item 7, MD&A — Outlook
  72. [72] Item 7, MD&A — Outlook
  73. [73] Item 7, MD&A — Company Key Metrics
  74. [74] Item 7, MD&A — Company Key Metrics
  75. [75] Item 7, MD&A — Company Key Metrics
  76. [76] Item 7, MD&A — Company Key Metrics
  77. [77] Item 7, MD&A — Company Key Metrics
  78. [78] Item 7, MD&A — Company Key Metrics
  79. [79] Item 7, MD&A — Company Key Metrics
  80. [80] Item 7, MD&A — Company Key Metrics
  81. [81] Item 7, MD&A — Non-GAAP Financial Measure Reconciliations
  82. [82] Item 7, MD&A — Non-GAAP Financial Measure Reconciliations
  83. [83] Item 7, MD&A — Liquidity and Capital Resources
  84. [84] Item 7, MD&A — Liquidity and Capital Resources
  85. [85] Item 7, MD&A — Liquidity and Capital Resources
  86. [86] Item 7, MD&A — Results of Operations 2025
  87. [87] Item 7, MD&A — Results of Operations 2025
  88. [88] Item 7, MD&A — Results of Operations 2025
  89. [89] Item 7, MD&A — Results of Operations 2025
  90. [90] Item 7, MD&A — Results of Operations 2025
  91. [91] Item 7, MD&A — Results of Operations 2025
  92. [92] Item 7, MD&A — Ford Blue Segment
  93. [93] Item 7, MD&A — Ford Blue Segment
  94. [94] Item 7, MD&A — Ford Model e Segment
  95. [95] Item 7, MD&A — Ford Model e Segment
  96. [96] Item 7, MD&A — Ford Pro Segment
  97. [97] Item 7, MD&A — Ford Pro Segment
  98. [98] Item 7, MD&A — Ford Credit Segment
  99. [99] Item 7, MD&A — Ford Credit Segment

Analysis on 6/21/2026