01—Abstract
Summary
Summary of the 10-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company's 2025 Form 10-K shows a sharply weaker year: GAAP net loss of $8.2 billiona (EPS -$2.06) versus $5.9 billion net income in 2024, driven by $17.4 billion of pre-tax special items.
The largest of these were an $8.4 billionb Model e impairment (including goodwill), $3.2 billion impairment of its BlueOval SK (BOSK) JV stake, and about $2.5 billion of EV program cancellation write-downs and charges. Excluding special items, Company adjusted EBIT fell 34% to $6.8 billion (3.6% margin) and adjusted EPS fell to $1.09 from $1.84, as lower Ford Blue and Ford Pro EBIT, including roughly $3 billion of gross tariff costs (about $2 billion net EBIT impact), outweighed improvement in Model e and Ford Credit. Cash generation held up better than earnings.
Operating cash flow rose to $21.3 billionc, but that was largely Ford Credit's $12.9 billion; Company adjusted free cash flow fell to $3.5 billion from $6.7 billion. Company cash was $28.7 billion and liquidity $49.8 billion, against a stated $20 billion minimum cash target. Shareholder distributions were $3.0 billion, below the 40-50% of adjusted free cash flow target, and total equity fell to $36.0 billion.
The company guided 2026 adjusted EBIT to $8.0d-10.0 billion and adjusted free cash flow to $5.0-6.0 billion, with capital spending of $9.5-10.5 billion. Management expects roughly $3 billion of additional special-item charges from the BOSK closing in the first half of 2026, plus up to about $4 billion more for EV actions. Credit ratings are investment grade but near the threshold.
S&P has BBB- with a negative outlook, and Moody's rates Ford's senior unsecured debt Ba1, below investment grade. The filing also flags contingent exposures, including about $1 billion or more of possible Brazilian tax collateral, a $103 million Hetsler product liability judgment under appeal, and a DPS6 transmission litigation, along with Ford's ongoing NHTSA consent order.
02—Key points
Key Highlights
- GAAP net loss of $8.2B (EPS -$2.06) vs. net income of $5.9B in 2024; special items totaled $17.4B pre-tax, mostly EV-related impairments and write-downs plus the $3.2B BOSK impairment.
- Company adjusted EBIT fell to $6.8B (3.6% margin) from $10.2B (5.5%); adjusted EPS fell to $1.09 from $1.84.
- Ford Blue EBIT dropped 43% to $3.0B and Ford Pro EBIT fell 24% to $6.8B, hit by tariffs, lower volume, and unfavorable fleet pricing; Model e loss narrowed modestly to $4.8B.
- Ford Credit EBT rose 55% to $2.6B on higher financing margin, though U.S. retail loss-to-receivables increased to 59 bps from 50 bps.
- Company adjusted free cash flow fell to $3.5B from $6.7B; Company cash of $28.7B and liquidity of $49.8B remain solid, and the regular dividend was held at $0.15/quarter.
- 2026 guidance: adjusted EBIT $8.0-10.0B, adjusted free cash flow $5.0-6.0B, capex $9.5-10.5B; Ford expects about $3B more special-item charges when the BOSK JV disposition closes in 1H26.
- Credit ratings are at the investment-grade threshold: S&P BBB- (negative outlook), Fitch BBB- (stable), Moody's Ba1 (stable), DBRS BBB (low).
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, Ford Motor Co lost $0.04.
- Revenue$187.27B100.0%
- Cost of revenue−$174.47B93.2%
- Gross profit$12.80B6.8%
- Operating costs−$21.97B11.7%
- Operating income−$9.17B4.9%
- Interest, other & tax$1.01B0.5%
- Net income−$8.16B4.4%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 11, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $187.27B$184.99B | +1.2% |
| Cost of Revenue | $174.47B$158.43B | +10.1% |
| Gross Profit | $12.80B$26.56B | −51.8% |
| R&D Expenses | $9.40B$8.00B | +17.5% |
| SG&A Expenses | $10.85B$10.29B | +5.5% |
| Operating Expenses | $196.44B$179.77B | +9.3% |
| Operating Income | -$9.17B$5.22B | −275.7% |
| Net Income | -$8.16B$5.89B | −238.5% |
| EPS (Basic) | $-2.06$1.48 | −239.2% |
| EPS (Diluted) | $-2.06$1.46 | −241.1% |
| Shares Outstanding (Basic) | 3.98B3.98B | 0.0% |
| Shares Outstanding (Diluted) | 3.98B4.02B | −1.0% |
05—Questions
Frequently Asked Questions
Why did Ford post a net loss in 2025 after a profit in 2024?
The loss was driven by $17.4 billion of pre-tax special items, primarily an $8.4 billion Model e impairment including goodwill, $1.1 billion of EV program cancellation write-downs, $1.2 billion of other EV-related charges, and a $3.2 billion impairment of the BOSK battery joint venture investment. Excluding these items, adjusted EBIT was still down about a third year over year.
Is Ford's underlying profitability deteriorating?
Adjusted EBIT fell to $6.8 billion from $10.2 billion, with the margin dropping to 3.6% from 5.5%. The decline came mainly from Ford Blue and Ford Pro, where gross tariff costs of about $3 billion (roughly $2 billion net EBIT impact) and weaker fleet pricing weighed on results. Management guides to $8-10 billion of adjusted EBIT for 2026, which implies a recovery but depends on tariff relief and the Novelis aluminum supply situation.
How strong is Ford's balance sheet and liquidity?
Company cash was $28.7 billion and total liquidity $49.8 billion, against a stated target of at least $20 billion of cash. Company debt excluding Ford Credit rose to $21.9 billion, and net cash fell to $7.7 billion. Shareholder equity dropped to $36.0 billion. Credit ratings are at the investment-grade boundary, with S&P at BBB- on negative outlook and Moody's at Ba1, so further downgrades would raise funding costs.
What are the main risks and contingencies investors should monitor?
Key items include tariff policy and refunds (a $974 million receivable was recorded), EV demand and regulatory changes (including the rollback of federal EV credits and emissions rules), up to about $4 billion of additional EV-related charges, the BOSK disposition closing in 1H26, supply disruptions (including the Novelis aluminum fires), possible Brazilian tax collateral in excess of $1 billion in aggregate, the Hetsler $103 million judgment on appeal, and the ongoing NHTSA consent order and BlueCruise investigations.
06—Continue