The 2026 Ford Mustang Dark Horse SC is shown during the 2026 Chicago Auto Show media preview at McCormick Place on February 6, 2026 in Chicago, Illinois.
Jacek Bocarski | Anadolu GettyImages
DETROIT – Ford motor reported its biggest quarterly profit miss in four years in its fourth-quarter results on Tuesday, with 2026 expected to be a rebound year for the automaker.
Ford’s guidance for 2026 includes adjusted EBIT of $8 billion to $10 billion, up from $6.8 billion last year; 2025 adjusted free cash flow of $3.5 billion to $5 billion to $6 billion; and capital expenditures increased to $10.5 billion from $8.8 billion to $9.5 billion.
Here’s how the company performed in the fourth quarter compared to average estimates compiled by LSEG:
- Earnings per share: Adjusted 13 cents vs. 19 cents expected
- Income from a car: $42.4 billion vs. $41.83 billion expected
EPS, which was 32% below consensus, was the company’s worst quarterly miss since 2024 and a 42% gap when it reported fourth-quarter 2021 results, according to LSEG.
The loss in revenue was largely due to unexpected rate charges of about $900 million related to auto parts loans that did not materialize as quickly as expected, the company said. Ford confirmed as of December 15 $7.7 billion in earnings before interest and taxes in the fourth quarter, but additional costs reduced that to $6.8 billion.
Sherry House, Ford’s chief financial officer, said the lower-than-expected earnings were due to the additional effects of last year’s fire at the Novelis aluminum supplier plant in New York, which is not expected to be fully operational until the middle of this year. The plant supplies Ford’s utility F-Series pickups.
“We will see a billion dollar profit around 2026; however, this year due to the impact of Novelis, we will increase tariffs to provide aluminum, which will account for roughly the same amount of savings,” House told reporters.
Ford’s net tariff impact is expected to be about $2 billion in 2026, he said. The Novelis fire cost Ford $2 billion in the second half of the year, he added.
CEO of House and Ford Jim Farley said the company’s 2025 results continue to show that the company’s core business is improving despite exceptional items impacting results.
The company’s 2025 revenue is a record $187.3 billion, up 1 percent from $185 billion a year ago. That includes $45.9 billion in the fourth quarter, down 5% from last year.
At the unit level, the automaker’s conventional and fleet operations are expected to offset an expected $4 billion to $4.5 billion charge this year for its Model e electric car unit. Pretax earnings from its Ford Pro fleet business are expected to be between $6.5 billion and $7.5 billion, followed by $4 billion to $4.5 billion for its traditional Blue business.
On an unadjusted basis, the company’s net loss of $8.2 billion last year was its biggest loss since the Great Recession of 2008, according to FactSet. That included $15.5 billion in special charges in the fourth quarter, largely due to previously announced pullbacks on its all-electric vehicle plans.
Automakers typically remove “special items” or one-time charges from adjusted financial results to give investors a clearer picture of their underlying, ongoing business operations.
Ford reported a fourth-quarter net loss of $11.1 billion, or a loss of $2.77 per share, compared with net income of $1.8 billion, or 45 cents per share, in the same period in 2024. Adjusted for one-time charges, the company reported earnings of 13 cents per share.