Ford profits top estimates but sees more pricing pressure

FILE – A Ford company logo on a sign at a Ford dealership in southeast Denver, Oct. 24, 2021. (AP Photo/David Zalubowski, File)

New York, United States — Ford reported a profitable fourth quarter in results that topped estimates but signaled it expects lower 2025 operating earnings on pricing pressure.

The US auto giant, which has enjoyed robust returns in its commercial vehicle and conventional gasoline businesses that have offset deep electric vehicle (EV) losses, expects about a two percent drop in industry-wide pricing in 2025, executives said.

As a result, Ford sees adjusted operating profits of between $7 to $8.5 billion, down from $10.2 billion in 2024, when it scored record revenues on higher vehicle sales.

READ: Ford sees $1.7B hit to fourth-quarter results

Profits in the fourth quarter came in at $1.8 billion, compared with a loss of $526 million in the year-ago period.

Revenues rose five percent to $48.2 billion, reflecting a double-digit increase in US vehicle sales in the period.

Ford executives described this year’s pricing outlook as set by global conditions in autos as well as an expected glut of EVs in the US market.

“There’s still pockets of strength, but there’s areas where we’re seeing incentives to get deals done,” said John Lawler, vice chair of the company and the outgoing chief financial officer.

Lawler characterized pricing in the first half of 2024 as “much stronger” than in the second half, with the trends continuing thus far in 2025.

Sherry House, Ford’s incoming CFO, told a call with reporters that the company had not taken any actions in response to trade tariff moves by the Trump administration.

On Monday, the White House suspended for 30 days a plan to enact 25 percent tariffs on Mexico and Canada following commitments by the governments to address concerns about immigration and fentanyl.

Tariffs of the scale “would have a major impact on our industry,” House said. “We’ve mobilized our team across all the scenarios to ensure we minimize disruptions and protect our business.”

Ford’s projections also do not include changes from Washington on EVs, such as talk that the White House could remove a tax credit of up to $7,500 on new EV purchases.

Ford’s 2025 forecast includes an operating loss of between $5 and $5.5 billion in EVs, with Ford’s Pro and Blue divisions both profitable.