Ford Motor Company has recently released its financial results for the fourth quarter and full-year 2024, along with its earnings guidance for 2025. In the fourth quarter, the Dearborn, Michigan-based automaker reported a revenue of $48.2 billion, showing a $2.2 billion increase from the same period last year. The net income for the quarter stood at $1.8 billion, a significant improvement from a loss of $523 million in the corresponding period last year, mainly due to pension-related expenses that impacted the prior year’s results.
Moreover, the company’s adjusted earnings before interest and taxes (EBIT) for the quarter totaled $2.14 billion, compared to $1.05 billion a year ago. For the full year, Ford achieved a 5% revenue increase, totaling $185 billion. The net income for the year was $5.9 billion, compared to $4.34 billion the previous year. The adjusted EBIT for the year amounted to $10.2 billion, slightly lower than the $10.42 billion reported in 2023.
In terms of cash flow, Ford reported cash flow from operations of $3 billion in the fourth quarter, with adjusted free cash flow at $0.7 billion. For the full year, cash flow from operations totaled $15.4 billion, and adjusted free cash flow was $6.7 billion. As of the end of 2024, the company held over $28 billion in cash and nearly $47 billion in liquidity.
However, Ford also projected up to $5.5 billion in losses for its electric vehicle (EV) and software operations in 2025. Despite this, the company expects overall profitability for 2025, although it anticipates a decline from the levels achieved in 2024. Ford President and CEO Jim Farley expressed confidence in the company’s path to creating long-term value for all stakeholders through progress in quality and cost as part of the Ford+ transformation.
Breaking down Ford’s business segments for 2024, Ford Blue, focused on traditional internal combustion engine vehicles, saw revenue remain flat at $101.9 billion. Positive net pricing offset a 2% decline in wholesales, driven by the discontinuation of lower-margin products, with an EBIT of $5.3 billion.
Ford Model E, responsible for electric vehicle operations, reported a full-year EBIT loss of $5.1 billion. Ford Pro, focusing on commercial vehicles and services, reported an EBIT of $9 billion, maintaining a margin of 13.5%. Ford Credit, the company’s financial services arm, reported full-year earnings before taxes of $1.7 billion, a $323 million increase from the previous year.
Overall, Ford’s financial results for 2024 reflect a mix of positive growth, challenges in the EV segment, and a focus on profitability and transformation for the coming year.
