Ford Reports $11.1 Billion Net Loss in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy F?
Source: Fool
Ford's stock fell as it reported an $11.1 billion net loss in Q4, marking its worst financial performance since 2008.
The company faced ongoing pressure on profitability, with three annual losses in the past six years. Despite achieving $42.4 billion in automotive revenue for Q4, it fell short of profit expectations, impacting investor confidence. Ford anticipates 2026 as a turnaround year, projecting adjusted EBIT between $8 billion and $10 billion, reflecting management's optimism about future performance.
This significant loss raises concerns about Ford's ability to maintain its market position and profitability, especially in light of unexpected tariff costs and external challenges.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.090
Low
11.00
Averages
13.65
High
16.00
Current: 14.090
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Dynamics: Ford's sales in Saudi Arabia have increased by 5%, while GM and Stellantis are experiencing declining sales in the Middle East, indicating Ford's expanding market share and competitiveness in the region.
- EV Outlook: Despite the current government's negative stance on EV production, analysts believe that sustained high gasoline prices could accelerate the transition to electric vehicles, potentially leading to a surge in demand for EVs in the future.
See More
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- Other Model Pricing: In addition to the base model, the Cybertruck's premium all-wheel drive variant is priced at $79,990, while the Cyberbeast variant is set at $99,990, reflecting Tesla's strategic pricing across different market segments.
- Sales Trend: Despite a 0.18% decline in Tesla's stock price to $401.80 during after-hours trading on Friday, the company's performance in the electric pickup market remains robust, indicating a favorable long-term price trend and market momentum.
See More
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- Ford Stock Appeal: Ford's shares trade at a forward P/E ratio of 9, attracting value investors, and its 4.23% dividend yield surpasses the 4.04% yield on 10-year Treasuries, making it appealing to income investors.
- EV Transition Challenges: Ford reported a massive $19.5 billion special charge in Q4 2025; however, its F-Series trucks remain the best-selling vehicles in America, indicating potential to maintain market leadership during its EV transition.
- Ferrari's Scarcity Strategy: Ferrari maintains market demand by limiting production, achieving a 9.6% compound annual growth rate in sales from 2015 to 2025, with expectations of 6.5% growth over the next three years, showcasing its strong pricing power in the luxury market.
- Profitability Comparison: Ferrari posted a 29.5% operating margin last year, significantly higher than Ford's 3%, indicating a more lucrative business model, leading investors to remain optimistic about its future growth.
See More
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- Ford's Attractive Valuation: Ford's forward price-to-earnings ratio of 9 has piqued the interest of value investors, particularly with a dividend yield of 4.23% that surpasses the 4.04% yield on 10-year Treasuries, making it appealing to income-focused investors.
- EV Transition Challenges: In 2025, Ford faced a significant $19.5 billion special charge, and while its Model e electric vehicle division is pivoting, the company struggles with a low operating margin of just 3%, indicating substantial operational challenges ahead.
- Ferrari's Scarcity Strategy: Ferrari aims to produce fewer cars than market demand, which enhances its luxury brand image and maintains robust demand, evidenced by an impressive 860% stock price increase over the past decade, showcasing its strong pricing power and market allure.
- Profitability Comparison: Ferrari achieved an operating margin of 29.5% last year, significantly outpacing Ford's low growth and weak profits, highlighting Ferrari's success in the luxury market and its potential for sustained revenue growth.
See More
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- Financial Performance: Ford recorded $8.2 billion in losses for 2025, while GM earned $2.7 billion, down over 50% from $6 billion in 2024, reflecting a decline in overall industry profitability.
- Stock Price Recovery: Despite tariff challenges, Ford and GM saw their stock prices rise by 35% and 55% respectively, suggesting that market optimism regarding future tariff policies may have boosted investor confidence.
- Tariff Policy Changes: The U.S. Supreme Court struck down some tariffs, yet a 25% national security tariff remains a burden on the automotive sector; however, the newly announced 10% temporary import duty exempts automobiles, alleviating some industry pressure.
See More
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- American Airlines Decline: American Airlines Group's stock fell approximately 6.3% on Friday, with over 61.3 million shares traded, reflecting market concerns about the airline industry's recovery, which could negatively impact the company's short-term financial performance.
- Ford's Weak Performance: Ford Motor's stock decreased by about 1.9% during the same session, with trading volume exceeding 39.6 million shares, indicating investor caution regarding its future growth prospects, potentially leading to a decline in market confidence.
- XPO's Strong Performance: XPO was the best-performing component on Friday, rising by about 2.5%, suggesting market recognition of its business model, which may attract more investor interest.
- United Airlines Struggles: United Airlines Holdings lagged behind other ETF components, with a decline of approximately 8.6%, highlighting the challenges it faces in a competitive market, which could affect its market share and profitability.
See More
