Summary
Ford Motor Company has announced a significant mark-to-market remeasurement loss related to its pension and other postretirement employee benefits (OPEB) plans for the fourth quarter of 2025. The company anticipates recording a pre-tax loss of approximately $0.6 billion, with $0.3 billion attributed to U.S. pension plans and another $0.3 billion to international pension plans. The primary drivers for these losses are actuarial discrepancies compared to assumptions for U.S. plans and updated measurement assumptions, such as increased life expectancy, for international plans. This remeasurement is classified as a special item and is not expected to impact Ford's ongoing operational results or key performance metrics like adjusted EBIT or adjusted earnings per share.
Key Highlights
- 1Ford expects a pre-tax remeasurement loss of ~$0.6 billion in Q4 2025 for pension and OPEB plans.
- 2The loss is split equally between U.S. ($0.3 billion) and non-U.S. ($0.3 billion) pension plans.
- 3Actuarial losses and updated life expectancy assumptions are key drivers of the remeasurement loss.
- 4The loss is treated as a special item and will not affect adjusted EBIT or adjusted EPS.
- 5On an after-tax basis, the net income/(loss) is expected to decrease by approximately $0.5 billion.
- 6The remeasurement has no impact on 2025 cash flows or expected 2026 pension contributions.
- 7Ford's funded plans remain fully funded on an aggregate basis.