0000037996-26-000015
SEC filingFord's 2025 net loss of $8.2B was driven by $17.4B in special items, offsetting a modest 1% revenue increase.
Ford Motor Company, incorporated in Delaware in 1919, is a global automaker based in Dearborn, Michigan, with about 169,000 employees worldwide. The company describes itself as committed to helping build a better world where every person is free to move and pursue their dreams. Ford develops and delivers innovative Ford trucks, sport utility vehicles, commercial vans, cars, and Lincoln luxury vehicles, along with connected services including BlueCruise (ADAS) and security.
Ford operates through three customer-centered business segments plus Ford Credit. Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine and hybrid vehicles, service parts, accessories, and digital services for retail customers, along with associated costs of development, manufacture, and distribution. Ford Model e primarily includes the sale of electric vehicles (including EREVs), service parts, accessories, and digital services for retail customers, focusing on developing EV and digital vehicle technologies and software. Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers, focusing on selling ICE, hybrid, and electric vehicles and providing digital and physical services to optimize and maintain fleets. Ford Credit offers a wide variety of automotive financing products to and through automotive dealers worldwide, with the predominant share of its business consisting of financing Ford vehicles and supporting Ford dealers.
Ford's vehicle brands are Ford and Lincoln. Named products include Ford trucks, sport utility vehicles, commercial vans, cars, and Lincoln luxury vehicles. Specific platforms mentioned include Super Duty, the Transit range of vans, and Ranger. Connected services include BlueCruise (ADAS) and security. In 2025, Ford sold approximately 4,395,000 vehicles at wholesale worldwide.
Substantially all of Ford's vehicles, parts, and accessories are sold through distributors and dealers, the substantial majority of which are independently owned. At December 31, 2025, there were 8,226 dealerships worldwide distributing Ford and Lincoln brands (7,479 Ford, 408 Ford-Lincoln combined, 339 Lincoln). Ford also sells vehicles to dealerships for sale to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The company does not depend on any single customer or a few customers to the extent that the loss of such customers would have a material adverse effect on its business.
The worldwide automotive industry consists of many producers, with no single dominant producer. Certain manufacturers account for the major percentage of total sales within particular countries, especially their countries of origin. The industry has historically had a very competitive pricing environment, driven in part by excess capacity. Manufacturers typically offer price discounts and other marketing incentives to provide value for customers and maintain market share and production levels.
Ford's Ford+ plan for growth and value creation combines existing strengths, new capabilities, and always-on relationships with customers to enrich experiences and deepen loyalty. The three customer-centered segments each have distinct strategic focuses: Ford Blue engineering iconic gas-powered and hybrid vehicles; Ford Model e inventing breakthrough electric vehicles along with embedded software for always-on digital experiences; and Ford Pro helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs.
As of December 31, 2025, Ford had approximately 169,000 employees worldwide (163,000 excluding Ford Credit, 6,000 at Ford Credit). In the United States, approximately 99% of unionized hourly employees are covered by collective bargaining agreements represented by the UAW, with about 56,300 hourly employees in the U.S. represented by the UAW. Workforce statistics include 27.9% of salaried employees worldwide are women; 25.5% of total salaried and hourly employees in the U.S. are women; and 36.7% of total salaried and hourly employees in the U.S. are underrepresented racial and ethnic groups.
Ford's full-year 2025 results were dominated by massive restructuring and impairment charges. Revenue rose slightly to $187.3 billion (+1%) from $185.0 billion, but net income swung from a $5.9 billion profit in 2024 to an $8.2 billion loss. The primary driver was $17.4 billion in pre-tax special items, most notably $10.7 billion in Model e asset impairments and EV program cancellations, along with a $3.2 billion impairment of its BOSK joint venture investment. Excluding special items, Company adjusted EBIT fell 33% to $6.8 billion, with adjusted EBIT margin dropping to 3.6% from 5.5%. The decline was driven by lower Ford Blue and Ford Pro profits, including the impact of $3 billion in gross tariff-related costs (net EBIT impact ~$2 billion). The effective tax rate was 31.0%, boosted by valuation allowance releases partly offset by unfavorable tax legislation. Diluted EPS was a loss of $2.06, while adjusted EPS was $1.09. Operating cash flow improved to $21.3 billion, but company adjusted free cash flow fell to $3.5 billion from $6.7 billion.
Ford Blue revenue was essentially flat at $101.0 billion, down 1% amid a 5% decrease in wholesale units. EBIT fell to $3.0 billion (3.0% margin) from $5.3 billion (5.2% margin), hurt by lower volume, tariff costs, and adverse exchange. Ford Model e saw a sharp 73% revenue increase to $6.7 billion on a 69% jump in wholesales, driven by new models in Europe. The EBIT loss improved to $4.8 billion from $5.1 billion, with the margin improving to -72.1% from -132.3% as strong volume and lower material costs more than offset tariff impacts. Ford Pro reported a 1% revenue decline to $66.3 billion, and EBIT fell to $6.8 billion from $9.0 billion, with margin narrowing to 10.3% from 13.5%. Unfavorable fleet pricing, mix, and higher tariff-related costs were the primary headwinds. Ford Credit was a bright spot, with EBT rising to $2.6 billion from $1.7 billion, driven by higher financing margin and favorable volume/mix, partly offset by higher credit losses.
For full-year 2026, Ford provided guidance for adjusted EBIT of $8.0–$10.0 billion and adjusted free cash flow of $5.0–$6.0 billion. It expects Ford Pro EBIT of $6.5–$7.5 billion, Ford Blue EBIT of $4.0–$4.5 billion, a Model e EBIT loss of $4.0–$4.5 billion, and Ford Credit EBT of about $2.5 billion. The outlook assumes a U.S. SAAR of 16.0–16.5 million and flat U.S. industry pricing. Headwinds from the Novelis aluminum supply disruption are expected to improve by about $1.0 billion year-over-year, while higher commodity prices are expected to offset material and warranty cost savings. The guidance does not factor in any new U.S. policy changes not yet announced.
Ford's consolidated cash and cash equivalents stood at $23.4B as of December 31, 2025, with an additional $15.1B in marketable securities, providing a combined liquidity buffer of $38.5B. Total debt increased to $163.3B (from $158.5B at year-end 2024), driven by a $5.0B net increase in Ford Credit debt partially offset by a $2.5B reduction in Company debt. Shareholders' equity attributable to Ford Motor Company dropped sharply to $35.95B from $44.84B, primarily due to the $8.2B net loss and $3.05B in dividends. The deferred tax asset grew to $22.0B (net), reflecting the large pre-tax loss and valuation allowance releases in Brazil and India.
The Notes disclose a warranty and field service action accrual of $17.19B as of December 31, 2025, a significant liability. Unearned revenue from extended service contracts totaled $6.2B, of which $1.9B is expected to be recognized in 2026. No aggregate purchase commitment figure was disclosed in the Notes section provided; the filing references commitments and contingencies in Note 24 but does not provide a single total or detailed breakdown of purchase obligations within the extracted text.
Ford declared dividends of $0.75 per share in 2025 ($0.15 quarterly plus a $0.15 supplemental), totaling $3.05B, down from $3.17B in 2024. No share repurchases occurred in 2025 (vs. $426M in 2024). Capital spending was $8.8B, representing 4.7% of total revenues. Net debt issuance was negative $0.6B, with $49.7B in proceeds and $50.3B in repayments. The company did not announce any new buyback authorization in the Notes.
Segment-level financial data (Ford Blue, Model e, Ford Pro, Ford Credit) are not included in the extracted Notes text; the segment information is referenced in Note 25 but the actual tables were not provided in this excerpt. The Notes do disclose that Ford Credit's consumer finance receivables were $85.3B (net of allowance) and non-consumer (dealer) receivables were $26.2B as of December 31, 2025.
Ford's operational risks center on supply chain fragility, product quality, and strategic execution. The company faces ongoing disruptions from single-source suppliers and raw material shortages (e.g., rare earth minerals from China, battery materials). Recent supplier fires (aluminum) illustrate vulnerability. Quality issues persist, with elevated recall and warranty costs, exacerbated by NHTSA oversight via a 2024 consent order. The Ford+ transformation requires balancing capital allocation among ICE, hybrid, and EV investments; slower-than-expected EV adoption has already forced adjustments and impairment charges. Cybersecurity risks grow with connected vehicles; third-party dependencies heighten exposure.
Trade policy is a dominant theme: U.S. tariffs and retaliation create uncertainty and cost inflation, hindering long-term planning. EV adoption volatility is critical–lower demand led to reduced investments and pricing pressure, while policy changes (elimination of federal EV tax credits) further dampen outlook. Competition from Chinese EV exporters in key markets intensifies. The shift in consumer preferences away from profitable large vehicles (trucks/SUVs) to EVs could compress margins. Macroeconomic factors (inflation, interest rates) impact affordability and commodity costs.
Government incentives (e.g., battery manufacturing tax credits) are subject to change; 2025 legislation restricted eligibility, affecting battery supply chain decisions. Ford Credit faces funding risks from credit rating changes and higher interest rates, potentially limiting its ability to support vehicle sales. Pension and OPEB obligations could require additional cash contributions, straining liquidity.
Regulatory volatility in emissions/fuel economy standards (federal vs. California) creates compliance challenges; Ford may need to purchase credits or modify product plans. Safety regulations (NHTSA) and product liability litigation (e.g., Hetsler case with $103M verdict) pose financial and reputational risks. Privacy and AI laws impose compliance costs and data breach liabilities. Ford Credit is subject to consumer protection regulations (CFPB oversight). Brazilian tax disputes involve potential collateral posting over $1 billion, though risk is assessed as remote.
The provided document excerpt does not contain the actual cash flow statement figures. It only references that the financial statements appear on page 108.