Thu Feb 06 14:30:00 UTC 2025: ## Ford Beats Q4 Expectations But Forecasts Tougher Year Ahead

**DETROIT —** Ford Motor Company exceeded Wall Street’s expectations for the fourth quarter of 2024, reporting record revenue of $185 billion and adjusted earnings per share of $1.84. However, the automaker issued a cautious outlook for 2025, predicting lower earnings and free cash flow due to anticipated headwinds. Shares fell 5% in after-hours trading.

Ford’s 2025 forecast anticipates adjusted EBIT between $7 billion and $8.5 billion, adjusted free cash flow of $3.5 billion to $4.5 billion, and capital expenditures of $8 billion to $9 billion. This contrasts with 2024’s adjusted EBIT of $10.2 billion and adjusted free cash flow of $6.7 billion. The company cited lower industry pricing and wholesales, as well as ongoing uncertainty regarding potential tariffs, as contributing factors.

While Ford’s traditional Blue (internal combustion engine vehicles) and Pro (fleet) businesses remained profitable, the Model e electric vehicle division continued to lose money, posting a $5.08 billion loss in 2024. CEO Jim Farley attributed some of the underperformance to unexpected quality and warranty issues that plagued the company last year, resulting in a nearly 20% share price decline. Farley reiterated his commitment to improving vehicle quality and reducing costs.

Ford CFO Sherry House emphasized the company’s projected $1 billion reduction in material and warranty costs for 2025. She also noted that the first half of 2025 is expected to be weaker than the second half, with a projected breakeven adjusted EBIT for the first quarter. This projection reflects lower wholesales and the production of less profitable vehicles during the launch of major assembly plant upgrades in Kentucky and Michigan.

The cautious forecast contrasts with rival General Motors, which exceeded expectations and offered a more optimistic outlook for 2025. Ford’s performance underscores the challenges facing the automotive industry, including managing costs, navigating evolving market conditions, and successfully transitioning to electric vehicles.

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