2026 Ford Mustang Darkish Horse SC on show through the Media Preview of the 2026 Chicago Auto Present at McCormick Place on February 6, 2026, in Chicago, Illinois.
Jacek Boczarski | Anadolu | Getty Photographs
DETROIT – Ford Motor reported its largest quarterly earnings miss in 4 years in its fourth-quarter outcomes launched Tuesday, whereas guiding for 2026 to be a rebound 12 months for the automaker.
Ford’s 2026 steerage consists of adjusted EBIT of between $8 billion and $10 billion, up from $6.8 billion final 12 months; adjusted free money circulate of between $5 billion and $6 billion, up from $3.5 billion in 2025; and capital expenditures of $9.5 billion to $10.5 billion, up from $8.8 billion.
This is how the corporate carried out within the fourth quarter in contrast with common estimates compiled by LSEG:
- Earnings per share: 13 cents adjusted vs. 19 cents anticipated
- Automotive income: $42.4 billion vs. $41.83 billion anticipated
The EPS coming in 32% under consensus was the corporate’s first quarterly miss since 2024 and its worst since a 42% distinction when reporting its 2021 fourth-quarter outcomes, based on LSEG.
The earnings miss was largely attributable to surprising tariff prices of roughly $900 million associated to credit for auto elements not taking impact as early as anticipated, the corporate stated. Ford, as of Dec. 15, had confirmed $7.7 billion in earnings earlier than curiosity and taxes for the fourth quarter, however the further prices dropped that to $6.8 billion.
Ford CFO Sherry Home stated the lower-than-expected earnings have been additionally associated to further impacts from fires at a Novelis aluminum provider plant final 12 months in New York, which now is not anticipated to be absolutely operational till the center of this 12 months. The plant provides Ford’s profitable F-Collection pickup vehicles.
“We’ll see a billion-dollar profit roughly in 2026; nevertheless, this 12 months, as a result of Novelis influence, we will have tariffs growing to be able to safe aluminum that’s roughly the identical quantity of that financial savings,” Home instructed reporters.
Ford’s internet tariff influence is anticipated to be roughly flat year-over-year at $2 billion in 2026, she stated. The Novelis hearth had an influence of $2 billion through the second half of the 12 months for Ford, she added.
Home and Ford CEO Jim Farley stated the corporate’s 2025 outcomes proceed to exhibit the corporate’s underlying enterprise is bettering regardless of the particular gadgets impacting outcomes.
The corporate’s 2025 income was a file $187.3 billion, up 1% from $185 billion a 12 months earlier. That features $45.9 billion through the fourth quarter, down 5% from a 12 months earlier than.
On a enterprise unit stage, the automaker’s conventional and fleet operations are anticipated to offset an anticipated $4 billion to $4.5 billion in losses this 12 months for its “Mannequin e” electrical car unit. Pre-tax earnings from its “Ford Professional” fleet enterprise are anticipated to be between $6.5 billion to $7.5 billion, adopted by $4 billion to $4.5 billion for its conventional “Blue” enterprise.
On an unadjusted foundation, the corporate’s internet lack of $8.2 billion final 12 months was its largest for the reason that Nice Recession in 2008, based on FactSet. That included $15.5 billion in particular prices through the fourth quarter largely associated to a pre-announced pullback in its all-electric car plans.
Automakers generally exclude “particular gadgets” or one-time prices from their adjusted monetary outcomes to offer buyers with a clearer image of their core, ongoing enterprise operations.
Ford reported a fourth-quarter internet lack of $11.1 billion, or a lack of $2.77 per share, in contrast with internet earnings of $1.8 billion, or 45 cents per share, in the identical interval in 2024. Adjusted for the one-time prices, the corporate reported earnings of 13 cents per share.
