Ford Motor Company reported a staggering $8.2 billion net loss for the full year of 2025 in its earnings release on February 10, 2026. While the company achieved record-breaking revenue of $187.3 billion, a series of massive one-time charges and external “shocks” wiped out its bottom line, marking its worst financial performance since the 2008 financial crisis.
Despite the heavy net loss, Ford’s stock rose slightly in after-hours trading as investors focused on its $6.8 billion adjusted EBIT (profit excluding one-time items) and a surprisingly optimistic outlook for 2026.
Financial Snapshot: Record Sales vs. Massive Losses
Ford’s 2025 was a year of extreme contradictions, where high demand for traditional trucks was offset by a complete restructuring of its future bets.
| Metric | Full-Year 2025 | vs. 2024 |
| Total Revenue | $187.3 billion | +1% (Record High) |
| Net Income/Loss (GAAP) | ($8.2 billion) | Down from $4.3B Profit |
| Adjusted EBIT | $6.8 billion | -33.3% |
| Adjusted Free Cash Flow | $3.5 billion | Healthy liquidity |
The Three Main Drivers of the $8.2B Loss
1. The $19.5 Billion EV “Reset”
The primary culprit was a massive $19.5 billion non-cash impairment charge taken in the fourth quarter.
- Ford effectively “wrote off” its previous electric vehicle strategy, cancelling the next-gen electric F-150 Lightning and several electric van programs.
- The company is pivoting toward hybrids, which saw a 21.7% sales surge in Q4, acting as a financial safety net while pure EV demand cooled.
2. The “Novelis” Supply Chain Crisis
A devastating fire at a major aluminum supplier’s plant (Novelis) in New York severely crippled production of high-margin vehicles.
- This disruption cost Ford approximately $1.5 billion to $2 billion in lost output and revenue, specifically affecting the F-Series and SUVs.
3. The “Tariff Trap”
New U.S. trade policies and “reciprocal” tariffs implemented in 2025 hit Ford harder than expected.
- The company disclosed $2 billion in tariff-related costs for 2025, specifically tied to aluminum and auto parts sourcing.
- Unexpected changes in December 2025 prevented the company from claiming nearly $900 million in expected tax offsets.
Performance by Business Segment
- Ford Pro (Commercial): The undisputed star, generating $6.8 billion in EBIT on $66 billion in revenue. It remains Ford’s most stable profit engine.
- Ford Blue (Gas/Hybrid): Delivered $3.0 billion in EBIT. While profitable, margins were squeezed by the aluminum supply crisis.
- Ford Model e (EV): Reported an operational EBIT loss of $4.8 billion. While a slight improvement over 2024, it continues to burn cash as it scales back.
2026 Outlook: The “Comeback Year”
CEO Jim Farley described 2025 as a year of “difficult but critical strategic decisions.” For 2026, the company provided a bullish forecast:
- Target Adjusted EBIT: $8 billion to $10 billion.
- Target Free Cash Flow: $5 billion to $6 billion.
- Dividend: Ford declared a regular Q1 dividend of $0.15 per share, signaling confidence in its $50 billion liquidity cushion.
