Ford Motor Company has released its financial results for the fourth quarter and full-year 2024, alongside its earnings guidance for 2025.
The Dearborn, Michigan, automaker reported a fourth-quarter revenue of $48.2bn, marking a $2.2bn increase from the same period last year.
Fourth-quarter net income stood at $1.8bn, a strong turnaround from a loss of $523m in the same period last year, largely attributed to pension-related expenses that affected the prior year’s results.
The company’s adjusted earnings before interest and taxes (EBIT) for the quarter totalled $2.14bn as against $1.05bn a year ago.
For the full year, Ford achieved a 5% revenue increase, totalling $185bn. Net income for the year was $5.9bn versus $4.34bn a year ago. Adjusted EBIT amounted to $10.2bn versus $10.42bn in 2023.
Cash flow from operations for the fourth quarter was $3bn, with adjusted free cash flow at $0.7bn. For the full year, cash flow from operations totalled $15.4bn, and adjusted free cash flow was $6.7bn.
As of year-end, the company held over $28bn in cash and nearly $47bn in liquidity.
However, Ford also projected up to $5.5bn in losses for its electric vehicle (EV) and software operations in 2025. Despite this, the company is expecting overall profitability for 2025, though it anticipates a decline from 2024’s levels.
Ford president and CEO Jim Farley said: “In 2025, we expect to make significantly more progress on our two biggest areas of opportunity – quality and cost – as we enter the heart of our Ford+ transformation. We control those key profit drivers, and I am confident that we are on the right path to create long-term value for all our stakeholders.”
Looking at Ford's business segments for 2024, Ford Blue, which focuses on traditional internal combustion engine vehicles, saw revenue remain flat at $101.9bn.
Positive net pricing helped offset a 2% decline in wholesales, which was driven by the discontinuation of lower-margin products, the company said in its press statement. This segment’s EBIT was $5.3bn.
Ford Model E, which is responsible for electric vehicle operations, reported a full-year EBIT loss of $5.1bn.
Ford Pro, focused on commercial vehicles and services, reported EBIT of $9bn, maintaining a margin of 13.5%, in line with its target of mid-teens. The segment saw a 15% year-over-year increase in revenue, reaching $66.9bn.
Paid software subscriptions rose by 27% to nearly 650,000 subscribers, while telematics services grew by nearly 100%, the auto giant said.
Lastly, Ford Credit, the company’s financial services arm, reported full-year earnings before taxes (EBT) of $1.7bn, a $323m increase compared to the previous year.
