Ford Motor (F) Earnings Q4 2024

Detroit – Ford engine Beat Wall Street’s top and bottom line expectations for the fourth quarter, but predicts a harder year to come to the company as CEO Jim Farley promises improvements in the quality and costs of the vehicle.

Shares of Ford fell 5% in trading after hours.

Fords Prognosis this year calls for adjusted earnings before interest and taxes or EBIT of $ 7 billion to $ 8.5 billion; adjusted free cash flow of $ 3.5 billion to $ 4.5 billion; and capital costs between $ 8 billion and $ 9 billion.

For 2024, Ford reported an adjusted EBIT of $ 10.2 billion or $ 1.84 in adjusted earnings per The car manufacturer reported that the total revenue, including its financial arm, was a $ 185 billion business record and adjusted free cash flow was $ 6.7 billion.

“We think it’s cautious. There are a lot of external factors … but our future is really in our hands,” Farley said Wednesday under CNBC’s “Clock Clock” on the precautionary guidance.

This is how the company appeared in the fourth quarter compared to average estimates prepared by LSEG:

• Earnings per Stock: 39 cents adjusted vs. 33 cents expected
• Automotive Revenue: $ 44.9 billion against $ 43.02 billion expected

The company said that its guidance in 2025, which is in line with or lower than many analysts’ expectations, “presumes headwinds related to market factors.” They include 2% industry lower pricing and slightly lower wholesale for Ford, but not additional tariffs from Trump administration.

“Given the break in the current customs situation, specifically in Mexico and Canada, we choose not to take any actions at this time,” Ford Chief Financial Officer Sherry House told the media Wednesday during a call. “We will let this run out of itself so that we can better understand the potential impacts on our business.”

House said this year’s forecast is also taking into account the expectations of a $ 1 billion reduction in materials and warranty costs compared to last year. This follows $ 1.4 billion in cost reductions in 2024, which was largely offset by unexpected quality and warranty costs.

The first half of 2025 is expected to be weaker than backend. It includes adjusted EBIT in the first quarter, which is expected to be roughly breakven due to lower wholesalers and less profitable vehicles produced, including launch activity at major US assembly facilities in Kentucky and Michigan.

For the fourth quarter of 2024, Ford reported a net income of $ 1.8 billion or 45 cents per year. Share compared to a net loss of $ 526 million or a loss of 13 cents per Stock, a year earlier. Adaptation of disposable articles reported the company earnings per. Share of 39 cents.

Ford’s traditional “blue” operations and “pro” naval companies transported the car manufacturer to profitability as its “Model E” electric vehicle business lost $ 5.08 billion by 2024, including $ 1.39 billion over the fourth quarter.

Its blue business, which includes combustion motor vehicles, earned $ 5.28 billion in 2024, a decrease of almost $ 2.2 billion from the previous year. Pro earned more than $ 9 billion last year, including $ 1.63 billion in the fourth quarter.

For 2025, Ford EBIT predicts $ 7.5 billion to $ 8 billion from the Ford Pro; $ 3.5 billion to $ 4 billion for Ford Blue; And a loss of $ 5 billion to $ 5.5 billion for Ford Model e. Its Ford Credit arm is expected to send earnings of $ 2 billion.

Ford was under pressure to appear after Crosstown -Rival General Motors Lightly topped Wall Street’s expectations of the fourth quarter and said its guidance in 2025 is in line with or above analysts’ expectations.

Ford underprested expectations last year largely due to unexpected warranty and recall problems that plague the company’s earnings. Shares of the car manufacturer fell almost 20% in 2024 in the middle of the problems that Farley has promised to fix.