01—Abstract
Summary
Summary of the 10-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company's 2024 Form 10-K (filed February 6, 2025) shows a company with steady underlying profitability but a sharply divergent segment picture.
Revenue rose 5% to $185.0 billiona and GAAP net income attributable to Ford increased to $5.9 billion ($1.46 diluted EPS) from $4.3 billion, largely because 2023's pension remeasurement loss and European and Chinese restructuring charges did not recur. Underlying performance was weaker: Company adjusted EBIT fell 2% to $10.2 billion, adjusted EPS declined to $1.84 from $2.01, and the adjusted EBIT margin slipped to 5.5% from 5.9%. Adjusted free cash flow was roughly flat at $6.7 billion.
Ford Pro was the clear bright spot, with EBIT up 25% to $9.0 billionb and a 13.5% margin, while Ford Blue EBIT dropped 29% to $5.3 billion on exchange-rate headwinds, supplier constraints, and higher costs. Ford Model e lost $5.1 billion, reflecting lower EV pricing and a $1.2 billion charge tied to cancelling an all-electric three-row SUV program. The 2025 outlook is cautious.
Management guides to adjusted EBIT of $7.0 to $8.5 billionc, adjusted free cash flow of $3.5 to $4.5 billion, and capital spending of $8.0 to $9.0 billion. Guidance assumes no new U.S. tariffs, but the filing explicitly flags the tariffs announced February 1, 2025 on imports from Canada, Mexico, and China, and warns that sustained 25% tariffs would significantly reduce earnings. The Model e loss is guided to widen to $5.0 to $5.5 billion.
Balance-sheet liquidity remains solid, with Company cash of $28.5 billiond and total Company liquidity of $46.7 billion, while Ford Credit's financial statement leverage is 10.0:1 and its EBT rose to $1.65 billion. Shareholder distributions totaled $3.5 billion in 2024, and the Board declared a $0.15 regular dividend plus a $0.15 supplemental dividend for Q1 2025. Key risks for investors include a potential $1 billion-plus collateral demand in the Brazilian tax disputes (which management considers remote), an unresolved Georgia punitive-damages case that the Georgia Court of Appeals vacated in November 2024, a $165 million NHTSA consent order, and ongoing EV-adoption and regulatory uncertainty around emissions and ZEV requirements.
02—Key points
Key Highlights
- Revenue grew 5% to $184.99 billion; net income attributable to Ford rose to $5.88 billion ($1.46 diluted EPS) from $4.35 billion, mainly reflecting lower special items versus 2023.
- Company adjusted EBIT declined 2% to $10.21 billion; adjusted EBIT margin fell to 5.5% from 5.9% and adjusted EPS dropped to $1.84 from $2.01.
- Ford Pro was the standout segment: EBIT rose $1.79 billion to $9.02 billion, with a 13.5% margin, on higher Super Duty and Transit volumes and favorable market factors.
- Ford Blue EBIT fell $2.18 billion to $5.28 billion, pressured by unfavorable exchange rates, adverse mix, and higher costs including warranty; Ford Model e's loss widened to $5.08 billion.
- 2025 guidance: adjusted EBIT of $7.0–$8.5 billion, adjusted free cash flow of $3.5–$4.5 billion, and capital spending of $8.0–$9.0 billion, with guidance excluding newly announced tariffs.
- Balance sheet remains sound: Company cash of $28.5 billion, Company liquidity of $46.7 billion, and a 2024 pension funded status improvement to a $0.5 billion underfunded position; the Board declared a $0.15 regular and $0.15 supplemental dividend for Q1 2025.
- Ford Credit EBT rose 24% to $1.65 billion, with net receivables up $10.4 billion to $143.6 billion, but loss-to-receivables increased to 50 bps from 35 bps.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Ford Motor Co kept $0.03.
- Revenue$184.99B100.0%
- Cost of revenue−$158.43B85.6%
- Gross profit$26.56B14.4%
- Operating costs−$21.34B11.5%
- Operating income$5.22B2.8%
- Interest, other & tax$675.0M0.4%
- Net income$5.89B3.2%
Where FY2024 revenue went
$184.99B- Cost of revenue: $158.43B, 86% of revenue
- Operating income: $5.22B, 2.8% of revenue
- R&D: $8.00B, 4.3% of revenue
- SG&A: $10.29B, 5.6% of revenue
- Other operating costs: $3.05B, 1.6% of revenue
Kept 2.8% as operating incomeOperating income $5.22B · 2.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 6, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $184.99B$176.19B | +5.0% |
| Cost of Revenue | $158.43B$150.55B | +5.2% |
| Gross Profit | $26.56B$25.64B | +3.6% |
| R&D Expenses | $8.00B$8.20B | −2.4% |
| SG&A Expenses | $10.29B$10.70B | −3.9% |
| Operating Expenses | $179.77B$170.73B | +5.3% |
| Operating Income | $5.22B$5.46B | −4.4% |
| Net Income | $5.89B$4.33B | +36.2% |
| EPS (Basic) | $1.48$1.09 | +35.8% |
| EPS (Diluted) | $1.46$1.08 | +35.2% |
| Shares Outstanding (Basic) | 3.98B4.00B | −0.5% |
| Shares Outstanding (Diluted) | 4.02B4.04B | −0.5% |
05—Questions
Frequently Asked Questions
Why did Ford's GAAP net income rise in 2024 while adjusted EBIT declined?
GAAP net income increased by $1.53 billion mainly because 2023 included a $2.4 billion pension and OPEB remeasurement loss and about $2.0 billion of restructuring charges, while 2024 had a $472 million pension and OPEB gain and smaller restructuring costs of about $1.0 billion. Those special items are excluded from adjusted EBIT, which fell $208 million on weaker Ford Blue and Model e results, partly offset by Ford Pro and Ford Credit gains.
How significant are the tariffs announced February 1, 2025 for Ford's outlook?
The 10-K states that 2025 guidance does not reflect new U.S. policy changes, including tariffs announced February 1, 2025 on imports from Canada, Mexico and China. Management says that if 25% tariffs are implemented and sustained for an extended period, they would significantly reduce Ford's earnings over the year. Impacts depend on scope, timing, supplier reactions and duty drawbacks, which the company is still assessing.
What is driving the continued losses at Ford Model e?
Model e's 2024 EBIT loss was $5.08 billion, with an EBIT margin of -131.8%. Lower net pricing from industrywide competition drove the decline, partly offset by lower material, engineering and warranty costs. The company also recorded $1.2 billion of charges for cancelling an all-electric three-row SUV program and expects a Model e loss of $5.0–$5.5 billion in 2025, citing continued pricing pressure and investments in next-generation products.
What legal or regulatory exposures could materially affect Ford?
Key exposures include Brazilian federal and São Paulo tax assessments tied to incentives in Bahia, where collateral could exceed $1 billion if required, though Ford considers the risk of loss remote. The Hill v. Ford Georgia product liability case, where a $1.7 billion punitive award was vacated and remanded for retrial in November 2024, remains pending. Ford also agreed to a $165 million NHTSA consent order and faces an EU/UK competition investigation on end-of-life vehicles. Emissions and ZEV regulations remain in flux, with the Ford-held credit purchase obligation at about $4.2 billion.
How strong is Ford's liquidity and shareholder return capacity?
Company cash was $28.5 billion and total Company liquidity was $46.7 billion at year-end 2024, against a target minimum Company cash balance of $20 billion. Company debt excluding Ford Credit was $20.7 billion, leaving net cash of $7.9 billion. Ford paid $3.5 billion in shareholder distributions in 2024 and targets 40–50% of adjusted free cash flow. Ford Credit remains self-funded, with $25.2 billion of net liquidity and leverage of 10.0:1 within its 9:1 to 10:1 target range.
06—Continue